Consumer complaint received 2024-10-09
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Freedom Mortgage Company (GA)

I am writing to formally lodge a complaint regarding a wrongful foreclosure and the subsequent unlawful eviction attempt by Freedom Mortgage Corporation. Despite my filing for XXXX  XXXX bankruptcy, a sheriff 's sale proceeded, during which Freedom Mortgage sold the property to themselves. They have evicted me from my home. Below, I outline the details of my situation and the violations committed. 

Background : I purchased my property on XX/XX/XXXX. By XX/XX/XXXX, my mortgage had been transferred to three different lenders, raising significant concerns. Within just 24 days of Freedom Mortgage assuming the role of lender, my FHA 30-year fixed mortgage payment was inexplicably increased. On XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, I submitted affidavits requesting confirmation that Freedom Mortgage held the promissory note, had the authority to enforce it, and asking for debt validation as required under the Real Estate Settlement Procedures Act ( RESPA ) and the Truth in Lending Act ( TILA ). I also requested full accounting documentation in accordance with 15 U.S.C. 44, as outlined in IRS Publication 583. My requests were consistently ignored, in clear violation of federal law. 
Despite this, a year later, Freedom Mortgage initiated foreclosure proceedings, blatantly disregarding both state and federal laws and my consumer rights. No promissory note was ever presented, and all requests for disclosures regarding account information were ignored. 

Key Issues : 1. Failure to Validate Debt : Despite repeated requests, Freedom Mortgage failed to provide validation of the debt, including the promissory note, in violation of TILA, RESPA, and other consumer protection laws. Would not respond to billing error also mentioned in affidavit as well as request for disclosures and other documentation. 
2. Improper Assignment Involving MERS : Freedom Mortgage began collecting payments in XX/XX/XXXX but did not have an assignment until XX/XX/XXXX. MERS acted as the assignor, though legally, MERS can not assign a mortgage if it does not hold the note, nor does it have the authority to act beyond its role as a recorder ( MERS v. XXXX, XXXX ; In re XXXX, XXXX ). The corporate assignment document incorrectly lists MERS as a nominee for XXXX XXXX  XXXX, which XXXX no longer held the note or mortgage at the time. This recorded documentation makes no clear mention of the holder of note or mortgage at the time of this assignment. The document falsely claims I executed it, which I did not and had no knowledge of it raising serious concerns about its legitimacy. 
3. Failure to Present Promissory Note : Freedom Mortgage never presented the promissory note, despite my requests and its necessity for legal foreclosure ( Restatement ( Third ) of Property ( Mortgages ), Section 5.4 ). The last known promissory note was endorsed by XXXX XXXX, the only entity legally authorized to transfer or assign it. This raises questions about the validity of Freedom Mortgages corporate assignment and their standing to foreclose, suggesting potential violations including fraudulent assignment, breach of contract, clouded title ( Indiana Code 32-21-4-1 ), FDCPA violations ( 15 U.S.C. 1692e ), and consumer fraud ( IC 24-5-0.5 ).

4. Improper Sale of Property : Freedom Mortgage sold the property to themselves at the sheriff sale, potentially violating Financial Accounting Standards Board ( FASB ) rules, specifically ASC 860 - Transfers and Servicing. True Sale Requirement : For a transaction to be treated as a sale ( and for the assets to be removed from the sellers balance sheet ), it must be a true sale, meaning the seller must relinquish control of the assets. Arms Length Transaction : The sale must be to an unrelated party in an arms length transaction. This transaction raises questions about whether the original sale was legitimate and properly accounted for. 
5. Lack of Disclosure Regarding Securitization : Due to the lack of disclosure, I am uncertain whether securitization occurred. Freedom Mortgage 's partnership with XXXX XXXX XXXX  XXXX XXXX, CIK # XXXX XXXX # XXXX and XXXX XXXX XXXX XXXX IRS NO : XXXX further complicates this issue. If securitization did take place, it would exacerbate the existing legal violations.