Consumer complaint received 2022-07-12
Company: Freedom Mortgage Company
State: NC
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process

Complaint:
Freedom Mortgage is my mortgage company. I was in forebearance during covid, and I am back to my normal payments as of XX/XX/2022. Please see attached for Promissory note for Partial Claim amount from forebearance. I am in process of obtaining equity line to payoff debt in order to raise my credit score so that I can purchase a new home. The lender 's lien search found the partial claim lien in the county records ( please see attached ). They requested that I reach out to HUD to obtain the lien payoff. HUD does not have documentation on file regarding this lien as it was assigned back to Freedom Mortgage. HUD indicated they had no record in connection with this Partial Claim which is concerning because the deed documentation has a HUD representative 's signature. My lender indicated they would accept a payoff statement or correspondence from Freedom Mortgage indicating the payoff amount of the Partial Claim only, address for payment and good through date. I understand this is a non-interest bearing partial claim and requested an explanation of that in lieu of good through date if Freedom couldn't provide a good through date. I have been trying to obtain lien payoff from Freedom Mortgage since XXXX XXXX. My call records will reflect multiple conversations with Freedom Loss Mitigation representatives. Some have acknowledged Freedom Mortgage is the assignee and should be able to provide a lien payoff statement, but most refer me to HUD even though I have sent Freedom emails from indicating my Partial Claim was not filed with them. Custom correspondence has been provided, but follow-ups to obtain the correct information have not been successful. As a matter of fact the latest correspondence referred to reaching out to HUD for payoff. As of yesterday, XX/XX/XXXX, I was sent emails indicating Freedom had taken responsibility for not filing documentation with HUD and had filed the Partial Claim yesterday and that I should reach out to HUD again. I reached out to HUD via email and a call and still there is no record of filing. I have communicated with Freedom Mortgage again today and they will not provide correspondence with the Partial Claim information only and they will not confirm the Partial Claim has been filed with HUD. This has been detrimental because I need the partial claim payoff information to close the loan. I do not have many loan options because I am in process of repairing my credit after covid. Please reach out to Freedom Mortgage and ask that they provide correspondence with partial claim amount only, payoff address and good through date. At this point if they can not provide such information, I request that they pay for damages incurred as a result of me not being able to obtain loan as a result of them not providing documentation. I will lose {$50000.00} equity loan. They should pay these damages as well as forgive the Partial Claim and release the lien. 

Further Freedom 's mishandling of the Partial Claim has had a negative affect on my credit. I have been denied credit with a reference that my mortgage was not reduced for an extended amount of time. If the Partial Claim was handled properly, Freedom would have forgiven the amount, updated my mortgage payoff and filed the Partial Claim with HUD to receive HUD 's insurance reimbursement of the amount forgiven. I would have been required to pay off the lien with HUD... Which is why the lender asked for HUD documentation to begin with. Freedom has acknowledged that the payoff amount they had on file was not accurate by providing a new payoff without the deferred amount on XX/XX/XXXX. Please require Freedom Mortgage to update my mortgage balance with credit bureaus. 

Multiple emails from HUD and Freedom Mortgage are attached for your review. 

Please note XXXX XXXX has been incredibly professional in trying to help. Her colleagues at Freedom Mortgage will not provide her with information.

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