Consumer complaint received 2024-09-26
Product: Mortgage — USDA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company (TN)

I received an insurance claim for damages to my property approximately XXXX ago. The insurance check required endorsement by both myself and the mortgage company. I spoke to the claims department about their process for signing off on the check to move forward with repairs. The claims department instructed me on a recorded line to send the check signed with the insurance adjuster report, and as long as the account was current at the time of the loss the check would be endorsed and mailed back. I was apprehensive about sending the signed check and I deliberated on it for a few months I had to have the insurance company reissue another check before I sent it in. The representative from Freedom Mortgage had assured me that they would not deposit the check, but would simply sign and resend it back to me. After they received the check they didnt send it back. I was informed that they also needed a signed affidavit before they would send it back for the repairs. At this point, I felt like I was being lied to and I refused to sign any affidavit. Instead, I then decided to consult with my insurance company. The insurance company told me if I was willing to repair the damages out of pocket they then could reissue another check and I agreed. Afterwards, the insurance company attempted to stop payment on the check that was sent to my mortgage company and the check had already been deposited. The mortgage company had lied to me on a recorded line that they would not deposit the check. The check was allegedly deposited into a secure escrow and will not be released until I sign an affidavit. I have refused to sign anything, but I asked the mortgage company if repairs are made with proof, could they then reimburse me the insurance claim money. They have not given me an answer by phone or written. I have not received any summary of the restricted escrow account that the claim check was deposited into. I was told by two different agents that they typically just apply the unclaimed insurance funds to the principal balance of the property after an unspecified duration of time. I am completely in the dark about where my insurance money is and what is going to happen to it. The roof of my house currently leaks in one of the bedrooms if we have heavy rain. I remain current on my mortgage, insurance, and taxes. My home is not in default and according to the recent county property assessment, my property has more than {$75000.00} equity. I only owe {$55000.00} on my property and I am over XXXX years into a thirty-year mortgage. I have not been in default on this mortgage for the entire duration of this mortgage. The mortgage company that I am presently dealing with is not the original lender, but my mortgage has been transferred to several lenders. I do not have any contract information on this current mortgage company and I dont know what my legal rights are to repair the property and receive reimbursement. Please help if you can, I am not trying to cheat my mortgage company, but I am paying my homeowners insurance and am receiving no representation. Note : the insurance company is XXXX XXXX and the mortgage company is Freedom Mortgage.