Consumer complaint received 2020-12-30
Company: Freedom Mortgage Company
State: SC
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
In XX/XX/XXXX, I closed on a mortgage for XXXX XXXX XXXX in XXXXXXXX XXXX XXXX. This was a zero-down USDA loan. I have never missed a payment. In XX/XX/XXXX, my husband was laid off due to the pandemic and we accepted the forbearance offered through XXXX. In XX/XX/XXXX, Freedom Mortgage bought our loan. 

In XX/XX/XXXX, I accepted a position within the XXXX XXXX and a relocation to XXXX, XXXX staring XX/XX/XXXX. I began the process of selling the XXXX XXXX property and my offer on a XXXX, XXXX property was accepted in XX/XX/XXXX. I began the financing process for the XXXX property immediately through XXXX XXXX XXXX, who after evaluating my credit and the property I was buying, believed that a USDA loan was the most appropriate. The sellers of the XXXX property were impatient to sell and initially requested a closing date in early-mid XXXX, but agreed to XX/XX/XXXX. 

On XX/XX/XXXX, my lending agent XXXX XXXX called with an update. Because of the forbearance status for the XXXX property, underwriting was having a hard time completing the loan for the XXXX property. He believed that if I could provide documentation showing that the forbearance amount could be paid at the end of the mortgage rather than in a balloon sum, and if I had a current loan statement showing my usual monthly payment and indicating that due to the forbearance, I owed {$0.00}, that underwriting would be satisfied and we could proceed. In other words, if I could show that my current mortgage for the XXXX property was responsibly managed. 

Unfortunately, the statements from Freedom Mortgage are extremely obtuse, stating that my loan is delinquent, that it is in forbearance, that I am not required to pay anything at this time, and that as of the XXXX statement, I owe a balloon payment of {$13000.00}. This is the most recent statement and is attached. 

I immediately called Freedom Mortgage the same day. I explained the situation and asked for the documentation. I was informed by XXXX that the documentation did not exist. They could not show my payment history, as they had only acquired the loan in XXXX. They could not provide a document showing my regular monthly payment. They could not provide a document indicating what would happen to the missed payments at the end of the forbearance. XXXX advised that the only way to get those documents would be to request to end the forbearance. She advised that this would be a 30-day period of underwriters deciding what my loan and circumstance qualified for, but that of the few options and because I made regular payments previously, I qualified for the desired result of adding the outstanding amount to the end of the loan term ( loan modification ). Once the underwriters had a decision, they could then send me my options. 

On XX/XX/XXXX, I called XXXX, who agreed to provide me with my statement history through XX/XX/XXXX via email. I still have not received that document as of XX/XX/XXXX. 

On the same day of XX/XX/XXXX, I called Freedom Mortgage again. I said that I understood the process of ending the forbearance and asked for a document explaining what they had verbally told me over the phone about the process and options. They refused, saying again that it did not exist. I asked for the procedures guiding their forbearance handling and they said that those did not exist. They could not, in any way, demonstrate in writing that I had made my monthly payments properly and could ( not would, just could ) therefore qualify for any given forbearance resolution. They could not give me a written explanation of what they were doing with my loan and how it was being reported to credit agencies. They could give me zero documentation whatsoever aside from the vague language on the website and a broken weblink ( as of XX/XX/XXXX ). 

The team at XXXX XXXXXXXX XXXX consulted with underwriting and confirmed that the only way for us to move forward would be to switch to a conventional loan and delay the closing period to on or about XX/XX/XXXX, with a 10 % down payment, contingent on the XXXX property closing the first week of XXXX. 

I am also in the process of completing the significant and legally sensitive financial disclosure and ethics paperwork for my position in the XXXX XXXX. Due to the now-delinquent status of this loan, I now have to claim delinquency on a federal loan which is a mark against my security clearance. 

As of XX/XX/XXXX, per a phone call with my real estate agent XXXX XXXX, the sellers of the XXXX XXXX XXXX property do not want to wait another month to close and will not sign the addendum. I am now at risk of starting this position in a new state with my family, homeless after the selling of our XXXX house, on a XXXX salary that will not compete for median housing prices in the greater XXXX area and too desperate to negotiate. Freedom Mortgage 's refusal to provide basic and clear documentation has currently cost me approximately {$30000.00} ( including the {$28000.00} quoted to me by XXXX XXXX as my total out-of-pocket for closing ), and even more if I lose the contract on the XXXX property. I will make {$41000.00} in cash after the sale of the XXXX house. I could only afford the XXXX house at {$190000.00} because I would have the cash to make substantial renovations afterward. That renovation amount is now going to a surprise down payment and the cost of temporary housing for my family. 

Today is also the first day that the webpage that allows me to input my loan number and see possible options has been functional. It too is attached.

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