Consumer complaint received 2024-08-23
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 (CA)

Subject : Complaint Against Freedom Mortgage Failure to Address Disputes and Mismanagement of Loan Modification Process Dear Sir/Madam, I am writing to formally lodge a complaint against Freedom Mortgage regarding their handling of my mortgage and loan modification process. I have been in communication with them for several years, and despite my efforts to resolve my mortgage issues, Freedom Mortgage has failed to address my concerns adequately. I am a XXXX XXXX  citizen currently applying for XXXX XXXX XXXX benefits, and this situation is causing me considerable distress. 

Background Information For the past XXXX years, I have been applying for XXXX XXXX XXXX benefits since XXXX and waiting for the State of California to pay out my retirement benefits due to me since XXXX. During this time, I have been working with Freedom Mortgage to manage my mortgage payments and stay in my home. 

Forbearance and Partial Claims Overdue balances were covered by HUD, resulting in a partial claim placed on my home for {$63000.00}. I also applied for and received California Mortgage Relief Assistance through applications XXXX and XXXX. XXXX application paid {$57000.00} toward my partial claim on XX/XX/XXXX, leaving a balance of {$5400.00}, attached to my home. Another application paid {$22000.00}, bringing my mortgage current as of XX/XX/XXXX. 

Loan Modification Process In XX/XX/XXXX, I received an Annual Disclosure Notice from XXXX regarding FHA Case No. XXXX, confirming the partial claim balance. Subsequently, I needed to modify my mortgage payments. However, Freedom Mortgage only offered XXXX unfavorable options : Deed-in-Lieu, Pre-Foreclosure Sale, and a Covid-19 Recovery Modification with an increased interest rate from 3.825 % to 7.250 %. I declined all three options via email on XX/XX/XXXX, as these are the only options I qualify for. 

On XX/XX/XXXX, I received loan modification documents that included a promissory note for a partial claim of {$12000.00}. I immediately disputed this amount via email, I sent a follow-up on XX/XX/XXXX and a third on XX/XX/XXXX, citing the Fair Debt Collection Practices Act ( FDCPA ) and requesting validation of the debt. I also informed Freedom Mortgage that their requirement to send disputes via physical mail violates the Americans with Disabilities Act ( ADA ) regarding accessibility. 

Continued Lack of Response Despite my repeated communications and disputes, Freedom Mortgage has not responded to my concerns. Instead, I received multiple modification packages containing the same erroneous partial claim amount. My requests for validation under 15 USC 1692g, Sec. 809 ( a ) and ( b ) have gone unanswered. 

On XX/XX/XXXX, I received yet another modification package with the same partial claim amount but with a reduced interest rate of 7.500 %. On XX/XX/XXXX, I was informed that my home was referred for foreclosure due to my refusal to sign the modification agreement. 

Harassment and Duress Since XX/XX/XXXX, I have been harassed by strangers knocking on my door, offering to purchase my home. I have also received numerous letters regarding my default. These actions have caused me significant stress and XXXX. 

Request for Assistance As of XX/XX/XXXX, Freedom Mortgage has failed to provide a written response to my disputes, despite acknowledging my correspondence on XX/XX/XXXX, after 75 days of my initial outreach. I am seeking your assistance in resolving this matter and holding Freedom Mortgage accountable for their failure to address my concerns and for the undue stress and XXXX  they have caused me. 

I kindly request that the CFPB investigate this matter and take appropriate action to ensure that Freedom Mortgage complies with the Fair Debt Collection Practices Act and the Americans with Disabilities Act. I am also seeking assistance in resolving the dispute regarding the partial claim amount and ensuring that my rights as a consumer are protected. 

Thank you for your attention to this matter. I look forward to your prompt response and assistance. 

Sincerely, XXXX