Consumer complaint received 2020-08-06
Company: Freedom Mortgage Company
State: VA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
This is a complaint against Freedom Mortgage for unfair actions, deceptive practices, and inaccurate reporting from XX/XX/XXXX - XX/XX/XXXX. I have a problem with their payment allocation process, which allows them to sit on the money and charge daily interest on the higher balance, erroneous PD fees, a XXXX property inspection fee on XX/XX/XXXX which they already had a class-action lawsuit about, and how it took 4 MONTHS to get my hardship reviewed, and 3 months to get an offer approval! Their lack of attention to this matter almost cost me the sale! I felt like it was done intentionally to force me into foreclosure. To start off, multiple payments were made each month to pay ahead and help with overall interest. Freedom would put the funds in an unapplied hold until it totaled to the amount due for that month, and then apply the payment to my account. The problem is in XX/XX/XXXX, XXXX was applied in total payments, but a late fee of XXXX was applied on XX/XX/XXXX, even when {$1500.00} was paid in addition to the overpayment we had on the account. We always paid this way from the beginning. I immediately called Freedom when I got the credit alert from XXXX XXXX and they did a payment investigation. They adjusted my account and added the unapplied payment amount of XXXX on XX/XX/XXXX, and was also supposed to credit my XXXX past due fee and correct my past due history, which they never updated. On XXXX/XXXX/XXXX, I disputed the history with XXXX XXXX, which was corrected on my reports on XX/XX/XXXX for XXXX and XXXX, but the fees were never adjusted back with XXXX, nor was the history updated within XXXX. In XX/XX/XXXX, XXXX reported 30 days PD as a result of an error of misapplied payment on their part and still holding XXXX in unapplied payments according to the XX/XX/XXXX statement. XX/XX/XXXX, I went through a domestic situation which resulted in me having to get an emergency protective order against my then spouse and filing for divorce. XX/XX/XXXX was a very trying time for my kids and I to leave our home temporarily, find safety, and seek assistance. When I finally had the mental capacity, I spoke to Freedom in XX/XX/XXXX, and advised them what was happing and what could I do to protect my name and credit because my score was XXXX before all of this! The rep told me that I had unapplied funds of XXXX and just needed to pay XXXX to bring the account current, so I paid XXXX on XX/XX/XXXX, and the rep applied the XXXX. When I inquired about assistance at that time, I was told that I would receive a package in the mail to apply, I NEVER received it. In XX/XX/XXXX, I called Freedom for hardship assistance and finally received the package mid-XXXX. Please note the timeline : - I faxed over my hardship letter, copy of Emergency Protective Order, and Divorce Petition on XX/XX/XXXX ( no response ) - I called and spoke to Loss Mitigation several times to confirm receipt ( advised not received ) - On XX/XX/XXXX I emailed XXXX my hardship letter, EPO, and that I had to flee the premises for protection because my then spouse was still living there since his name was on the deed. 
- On XX/XX/XXXX, I spoke to loss mitigation and they needed me to complete a hardship package that they emailed me the same day to determine which program I may apply for. I was hoping to get some sort of forbearance or temporary suspension or even a reduction on the mortgage. 
- On XX/XX/XXXX, I obtained a realtor and put the house on the market to sell - On XX/XX/XXXX, I completed the paperwork for loss mitigation AGAIN and emailed back along with my paystubs, hardship letter to prove that my income has significantly changed due to my separation from spouse, and I also had to prove additional expenses because I now have XXXX minor kids to take care of myself. 
- Again, I waited until my realtor then applied for a short sale to bring the price down ( mind you, nothing from hardship ) - XX/XX/XXXX, I emailed XXXX the short-sale request form, XXXX, XXXX Taxes, paystubs again, bank statements, etc for hardship due to decreased income from then spouse, and additional child to take care of. These papers were emailed, faxed, and mailed several different times by both my realtor and I. They even sent me outdated papers, which cause me to redo and resubmit. 
- Now we are in XXXX, the assigned person to my case, we could never get ahold of to speak to. I was finally, advised that since my spouse is not on the loan, I didn't qualify for any programs to help with the mortgage while it was being sold. I advised them that they considered and took his income information when I applied for the loan, showing I had over XXXX of gross income in the household, but that fact that I am down to 1 income of around XXXX with XXXX kids doesn't qualify as a hardship??? Not to mention, he was squatting in the house until XX/XX/XXXX because VA law doesn't allow me to have him removed, I had to legally evict him! 
- My realtor followed up every week with Freedom Mortgage to be advised of no updates. 
- on XX/XX/XXXX, I get an offer on the house to close on XX/XX/XXXX, paperwork signed and submitted immediately - On XX/XX/XXXX, my realtor files a complaint with HUD, obligation for this case # XXXX because we want to get the loan satisfied, and it was 45 days at that time since the buyers submitted their offer. 
- On XX/XX/XXXX, I get an email from my realtor advising the buyer is getting impatient because Freedom hasn't provided a clear to close. 
- On XX/XX/XXXX, Freedom Mortgage sends an approval letter to close ( 3 months after an offer was made, and a month and a half after the original close date ) - On XX/XX/XXXX, I get a notice of extended closure to XX/XX/XXXX. 
Due to the amount of unreasonable time it took dealing with Freedom Mortgage, my offer turned into a pre-foreclosure situation, which it wasn't initially. I am not able to currently buy a home without putting 20+ % down which I can't do on a decent house as a single mom. Not to mention the impact of 10 months delinquency showing for Freedom Mortgage incorrect reporting and unfair hardship and closing practices being the only negative item on my credit. The inconsistency amongst the 3 CBRs with this company is heartbreaking. Additionally, during this period, I had to come out of pocket to upkeep the house, keep the utilities on, the yard is done for HOA, pay HOA, and Freedom did not offer any assistance to even help with relocation, waive fees NOTHING. They just made sure they got their money and did nothing to help their customer. This was the absolute WORST experience I have ever had in my life with a creditor because I had to focus on the safety of my kids and leave an XXXX   environment.

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