Consumer complaint received 2017-11-02
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Freedom Mortgage Company (NC)

I think it was XXXX XXXX when I applied online to refinance my home through XXXX. I was contacted by Freedom Mortgage and began the application. My first closing date was scheduled for XXXX XXXX. Freedom arranged for an appraiser to come to my home on XXXX XXXX XXXX, and I was later contacted by the Loan Officer denying the refinance based on termite damage and peeling paint to the cedar siding on my home. I called the loan officer a couple of days later explaining that my only source of income is Social Security and the reason I needed the refinance was to get cash out from the equity in my home in order to have the repairs done. I had no other resources, and wanted to have the repairs done before the damage became worse. I asked if the cash out could be put into escrow with Freedom 's attorney pending the completion of the repairs and closing the loan. My HVAC unit stopped working. I notified the Loan Officer as she had told me not to incur any more debt or open any other credit lines. After being without air conditioning for two weeks, I called the Loan Officer again, and told her I was going to have to have a new HVAC unit installed, and would have to finance it. I was told I would not be able to get enough cash out when I refinanced my home to cover the repairs and the cost of the HVAC, and she knew I would have to find other financing for the HVAC. The new HVAC system was installed on XXXX. I later received a Notice of Incomplete Application dated XXXX, which listed Appraisal Repairs : Peeling paint ; termite damage ( termite inspection/retreatment required ). I contacted a local XXXXontractor who called the Loan Officer to be sure he understood what was needed. She told him the repairs needed to be done before the loan could proceed. Repairs began on my house on XXXX/XXXX/XXXX, and were completed on XXXX/XXXX/XXXX. I was later informed by the Loan Officer that a Title Search showed there was a lien on my property to XXXX XXXXXXXX XXXX. I told her there should not be because I had no outstanding debt to XXXX XXXX XXXX. During a phone call to the bank with the Loan Officer on the line, we were told they could not find any record of the lien. I spent 2 hours on XXXX/XXXX/XXXX and again on XXXX/XXXX/XXXX I spent another 2 hours in the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NC. There was no outstanding lien to XXXX XXXXXXXX XXXX, but there was one from XXXX linked to an Equity Line at XXXX. The XXXX Equity Line was replaced by an Equity Line to XXXX XXXX XXXX when XXXX XXXXXXXX XXXX was bought by XXXX, but they neglected to release the lien when it was replaced by one to XXXX XXXX XXXX. After 2 days on the phone, I located the area at the bank that could do the research and release the lien. The closing date was set for XXXX/XXXX/XXXX. I later received another call moving the close date out a week because another credit report had been ordered. On XXXX/XXXX/XXXX, I received a call informing me the refinance of my home had been denied because my credit score had fallen below what is required by FHA. Financing of the new HVAC was a major reason. I do not dispute the refinancing of my home, but I now owe a contractor {$8000.00} for repairs to my home that I never would have had done if the Freedom Mortgage Loan Officer had not told me to have them done. Freedom 's Customer Advocate told me not to make my XXXX and XXXX mortgage payments to XXXXXXXX XXXX because they would be paid off. Only because of what he told me, I did not make the XXXX payment on XXXX/XXXX/XXXX, and used those funds to catch up on some utility bills I was behind on. It was after those funds were applied to utility bills that I learned the refinance was denied. Because I am now behind a payment on my existing mortgage, it was necessary for me to apply for a Hardship Remodification of my mortgage. Freedom Mortgage has denied any responsibility for the cost of repairs to my home, and I have no way of paying the contractor.His is a small business just trying to become established in the area, and told me he does n't know how he can take this loss. He can not complete work begun on another house until he is paid for the work done on my home. I am XXXX, and receive only XXXX  XXXX and XXXX in the amount of {$15.00} a month. I have spoken to a Freedom Mortgage representative on their escalation team, but my calls and messages have gone unanswered this week.