Consumer complaint received 2019-03-16
Company: Freedom Mortgage Company
State: MS
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
FACTUAL BACKGROUND This loan was originated by my deceased brother, XXXX XXXX XXXX, who purchased the subject property at XXXX XXXX XXXX in XXXX, XXXX XXXX and who subsequently passed away on XX/XX/XXXX of XXXX. At the time of XXXX 's passing, the home this loan is attached to was left to me in The Last Will and Testament of XXXX XXXX XXXX, and also named me as the Executor of his estate. Soon thereafter I notified your company of my brothers passing, provided a copy of his official death certificate both by facsimile, and via the USPS, and therein provided my mailing address, and email address in which to provide all communication regarding this loan, as to protect both parties in this matter, and to maintain a written copy of said communication. 

Soon thereafter I provided a notarized copy of the Letters Testamentary from the XXXX XXXX of XXXX XXXX, XXXX  via facsimile and via USPS, and began making the payments on this note. In XXXX I reached out to Freedom Mortgage to make an arrangement to make three payments on the note which would bring the note current by an arranged date, and allow me to avoid taking money out of an investment account to bring the loan current immediately, which said agreement was agreed to over the phone by your company. Following through with the agreement I subsequently mailed three payments via the USPS prior to the date previously agreed to, but those checks were returned one month later, and dated as received well over three weeks after their documented mailing in the USPS. Therewith in your company initiated a foreclosure proceeding based on the created default on the note due to the apparent holding the checks for over three weeks, and then returning them to me as being untimely per the agreement, and soon thereafter a foreclosure process was initiated by your company and an assignment of The XXXX Firm as substitute trustee was performed. 

During the next several months I requested the reinstatement amount required to bring the note current and cease the foreclosure process a minimum of fifteen times via letters sent USPS, emails directly to your company, and requests on phone calls made to my cellular phone, and the only response I was given was that " the information regarding the reinstatement amount would come from Freedom Mortgage 's substitute trustee and retained counsel, The XXXX Firm. '' When I contacted The XXXX Firm requesting the reinstatement information, and the amount required to legally reinstate the loan, I was instructed that The XXXX Firm did not create that information, and instead it would be sent directly from your company, a direct contradiction to everything I had been told for the previous two months by numerous Freedom Mortgage representatives. 

Finally having exhausted almost all avenues, and threatening legal action to protect my rights, I chose to move forward using the financial numbers represented to bring the loan current, and as such reinstate the note contained in the XX/XX/XXXX mortgage statement. I then verified the information contained in the XXXX mortgage statement to be accurate as to the amount to cure the default and legally reinstate the note bringing it current, and verified that the {$1500.00} payment due for XX/XX/XXXX contained all legal fees incurred for the foreclosure process secondary to the created default on the note. 

Quoting directly from that XXXX mortgage statement cited above, which was dated XX/XX/XXXX ; Recent account history : Payment due XX/XX/XXXX : Unpaid balance of {$910.00} Payment due XX/XX/XXXX : Unpaid balance of {$910.00} Payment due XX/XX/XXXX : Unpaid balance of {$930.00} Payment due XX/XX/XXXX : Unpaid balance of {$930.00} Payment due XX/XX/XXXX : Unpaid balance of {$930.00} Payment due XX/XX/XXXX : Unpaid balance of {$1500.00} Current payment due XX/XX/XXXX - {$910.00} Total {$7400.00} due. You must pay this amount to bring your loan current The aforementioned direct quotation of past due payments, and the currently due XXXX payment taken directly from the XX/XX/XXXX Mortgage statement, also affirmed as accurate by your representatives is attached as EXHIBIT A to submitted email as well as a printed copy to accompany this Notice of ( QWR ) and Notice of Error being mailed CMRR. 

In response to this information, and reinstatement amount taken directly from the referenced XX/XX/XXXX Mortgage Statement, I obtained an Official Check drawn on one of my accounts at XXXX Bank for the total of XXXX XXXX, XXXX XXXX XXXX Dollars and XXXX XXXX Cents, ( {$8300.00} ) which fully complied with the reinstatement amount to pay all past due payment dates, and currently due XXXX payment, therewith bringing the note current, and legally reinstating it. This amount as referenced in the letter which accompanied the check also paid in full, prior to the due date, the XX/XX/XXXX payment, and also included an extra amount in the event there were any unreported, and not previously stated, purported fees as to assure no issues with the full legal reinstatement of the loan. Notice of the impending overnight mailing of the check to fully pay all past due monthly payments, pay the current payment, and pay the XXXX payment in advance was emailed to your company, dated XX/XX/XXXX, and mailed via USPS the same date, and is attached as EXHIBIT I, with the signature page being attached as EXHIBIT J. 

Accompanying the referenced XXXX XXXX Official Check, number XXXX, signed by XXXX XXXX XXXX XXXX XXXX, and documented received by XXXX for your company after overnight delivery to the Fishers IN address, attached as EXHIBIT G, with the signature page attached as EXHIBIT H. 

This notice sent overnight delivery via I ship at UPS, was documented to be received by your company. Furthermore a copy of the cancelled Official Check was obtained from XXXX Bank. The overnight package contained the Official Check and also contained a letter which stipulated that the accompanying check was for payment in full of the XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX payments which were past due, as well as the full amount of the current payment due for XX/XX/XXXX, and also was prepaying the XX/XX/XXXX payment prior to its due date, along with an additional amount as stated in the letter to cure any unknown, or not previously reported fees. 

Therein, upon receipt of referenced check # XXXX in the form of an Official Check from XXXX XXXX, the loan at issue here, loan # XXXX was brought fully current as to all past due payments from XXXX of XXXX through XXXX of XXXX, as well as the current payment due for XX/XX/XXXX and as such was legally reinstated. Also at that time, the XX/XX/XXXX payment was paid prior to the due date, and an additional amount should have been placed toward the principal of the loan as there were no additional unreported fees at the time of the reinstatement. 

Having just sent an Official Check which fully brought the loan current, and paid the XXXX payment prior to its due date, and to keep the note current and on time, on XX/XX/XXXX of XXXX I once again drafted funds from one of my XXXX XXXX  accounts, and had another Official Check created by same which would be to satisfy the mortgage payments due XX/XX/XXXX and XX/XX/XXXX, and was subsequently mailed via USPS, attached as EXHIBIT D. This mailing of the XXXX and XXXX payments also contained a letter reflecting what due dates they were intended to satisfy. 

Shortly after mailing the above referenced payments, along with the notice as to their description I received the XXXX mortgage statement, dated XX/XX/XXXX and it purported that the loan was now due for the amount of XXXX XXXX XXXX XXXX and XXXX XXXX Dollars and XXXX Cents, ( {$2700.00} ) which purported that the loan as of XX/XX/XXXX was forty nine ( 49 ) days late. I quote directly from the XXXX statement attached as EXHIBIT B below. 

Recent Account History Payment due XX/XX/XXXX : Unpaid balance of {$910.00} Payment due XX/XX/XXXX : Unpaid balance of {$930.00} Current payment due - XX/XX/XXXX - {$900.00} Total {$2700.00} due. You must pay this amount to bring your loan current This mortgage statement was an attempt to bill me for the previously paid in full monthly notes for XXXX, and XXXX of XXXX, and even went as far as to add late fees to the previously paid monthly due dates. As evidenced above, and the Exhibits attached therewith, the only amount due at that time, and what should have been accurately reported on the XXXX mortgage statement was the XX/XX/XXXX payment. Therefore there were two payments previously made on this loan that should have been applied in a timely manner to the loan, and that are unaccounted for at the time of the XX/XX/XXXX statement, and appear to still be unaccounted for to this day. 

The following month I received the XXXX mortgage statement dated XX/XX/XXXX, attached as EXHIBIT C, which still reported the unaccounted for previously verified payments for the due dates of XX/XX/XXXX, and XX/XX/XXXX, and the XXXX statement added additional late fees placed on previously paid loan due dates. Howbeit by this time the XX/XX/XXXX, and XXXX of XXXX payments had been received and documented as processed via XXXX Bank. Therefore at the time of receipt of the XX/XX/XXXX referenced check, which stipulated to, and directed the payments to be applied timely to the XX/XX/XXXX, and XXXX of XXXX payment dates, the loan was paid current, and due again until XX/XX/XXXX. 

On XX/XX/XXXX of XXXX I once again drafted funds from one of my accounts at XXXX XXXX and created another Official Check to pay the XXXX, and XXXX of XXXX payments due on the loan. This check was also verified to have been processed via XXXX Bank, and the debit creating the check is attached as EXHIBIT E.

Recently I have received two communications from Freedom Mortgage, and this is my second answer within the past few days, and even more detailed in my response than the last one. The most recent mortgage statement dated XX/XX/XXXX, created well beyond the receipt of the Official Check from XXXX XXXX   acquired on XX/XX/XXXX, and subsequently mailed via USPS, purports that the amount now due on the loan is XXXX XXXX XXXX XXXX XXXX XXXX Dollars and XXXX Cents, ( {$4500.00} ) and the statement, attached as EXHIBIT F. Quoting directly from the statement ; Recent Account History Payment due XX/XX/XXXX : Unpaid balance of {$950.00} Payment due XX/XX/XXXX : Unpaid balance of {$930.00} Payment due XX/XX/XXXX : Unpaid balance of {$900.00} Current payment due - XX/XX/XXXX - {$900.00} Total {$4500.00} due. You must pay this amount to bring your loan current This most recent statement once again attempts to bill me for the previously paid, and documented therewith months of XXXX, and XXXX, of XXXX, along with even more created fees based on the purported delinquency of previously paid monthly loan dates. This along with the correct current due date of XX/XX/XXXX. 

This loan is paid in full through the XXXX of XXXX payment and is not even due until XX/XX/XXXX and direct evidence supporting that fact has been referenced here ONCE AGAIN, and is being produced as attachments to this notice as well. It is becoming apparent that your company is COMPLETELY unable to accurately accept, and apply payments, is fond, and consistent in creating late fees where none exists, and also defaults where none should have occurred, all generating additional profits from the assessments of late fees applied to payment due dates previously paid.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation