Consumer complaint received 2018-05-11
Company: Freedom Mortgage Company
State: FL
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
XX/XX/XXXX. XX/XX/XXXX Hurricane XXXX hit our location. We notified our mortgage company that we were in the affected area and that we had some damage. We advised that the damage was not enough to utilize insurance but needed to make some repairs. The mortgage company said they would give a 90 day forbearance. Payments would resume in XX/XX/XXXX. Also, loan qualified and we meet the approval for VA cap & extend. At that time they would simply move those payments to the end of loan, rate would stay the same and we would move forward with regular payments. Advised to hang in there because there are a lot of members effected and the process could take a while. After receiving multiple requests to complete loss mitigation paperwork I was to ignore the automatic loss mitigation paperwork because it does not apply to our type of loan. At the end of the 90 days, the process still was not complete. I called the mortgage company and was told forbearance was extended for 6 months per FEMA for everyone effected and not worry. They are working to complete the process and advised that nothing would be reported to the credit bureau during this process. Continued to receive demand letters and loss mitigation paperwork but was told again to continue to hang on. The mortgage company is overwhelmed with applications and unfortunately underwriting is still working on all applications. Still will not have credit reporting during this process. Follow up weekly or bi-weekly and make payments if able. Again advised that we were approved for VA cap & extend but simply need to wait for underwriting to get to loan to complete the paperwork/process. At end of XX/XX/XXXX we received notification from our credit that there was negative reporting from the mortgage company. We were reported 150+ past due. Immediately call the mortgage company and spoke with XXXX on XX/XX/XXXX and told that their system reported it in error on multiple accounts. The company was working to reverse all the accounts and it would be correct by XX/XX/XXXX. In the meantime we received a letter dated XX/XX/XXXX with a modification offer effective XX/XX/XXXX with a response requested by XX/XX/XXXX by us. In this offer it states that our rate would increase to 5 % ( current rate is 3.475 % ) with a payment of {$2800.00}. Our current payment is {$2200.00}. I immediately called on May 2 and spoke with XXXX and was told that the VA denied the cap & extend and that this was the offer they sent back. I was advised to call them to discuss with them directly. I asked XXXX about a payment option instead. He advised that there was a 6 month or 1 year option. I told him we may want the 1 year option. He put in request to have that option calculated with a due date of XX/XX/XXXX. He also advised that the credit reporting had not been corrected but it should be completed by XX/XX/XXXX for the new reporting on XX/XX/XXXX. I said I would call back then for that calculation. In the meantime, I called the VA and spoke with my rep. XXXX XXXX at XXXX XXXX email : XXXX and he advised that the above information is incorrect. The mortgage company NEVER sent over a request for VA cap & extend. They sent over the request to increase our rate to 5 % and the VA approved. He continued that that rate is not even the current listed rate. The current VA rate is 4.5 % and he is not sure why the mortgage did that. XXXX XXXX advised that cap & extend is up to the mortgage company and not the VA. The VA would simple approved what they are requesting. He advised I contact the mortgage company and give that same information to see what they say. I called back to the mortgage company on XX/XX/XXXX to verify credit had been corrected and was told they would NOT be correcting per the notes. I advised that per their letter dated XX/XX/XXXX stated they would not be reporting. That we had until XX/XX/XXXX to accept modification offer with a new payment of XX/XX/XXXX. Per XXXX FEMA lifted forbearance XX/XX/XXXX. I explained that we were never notified of this. And XXXX acknowledged that no one was notified unfortunately. At this time XXXX put in an expedited request to possibly correct credit again. I advised at this time that we do not want the modification but would like they payment plan. I advised that we would be payment {$6800.00} ( past due ) + XX/XX/XXXX payment of {$2200.00} as of XX/XX/XXXX. I advised that we would like the remainder past due amount {$4800.00} to be put on a payment plan over 12 months beginning XX/XX/XXXX. At this time XXXX advised that they can not due 1 year plan and can only do a 6 month plan. She advised that if we wanted 12 month plan we would have to start the entire modification over including completing paperwork. I advised her that XXXX told me on XX/XX/XXXX that this was a option and she said he was wrong for telling me this. I said I would call back next week. NOTE : If we would have been told after the initial 90 day forbearance or even in the beginning that the VA cap & extend was not an option, we would not have allowed this process to move forward and thus allowing the account to get to this point. We feel this was misrepresentation on behalf of the mortgage company to force not only us but other members into a rate increase and modification to the advantage of the mortgage company only and not the member. This process was suppose to help the hardest hit areas!!

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