Consumer complaint received 2023-01-13
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: Freedom Mortgage Company (MI)

Back in XXXX of XXXX, we accepted the Covid 19 forbearance plan with our mortgage company. We accepted this program as we fell into shipping issues with our company. They didn't receive the right machines and materials ; therefore we couldn't produce the products for our company. Eight months later we had to close our doors and had to file bankruptcy. We stayed in that program and accepted the extensions until it ended in the fall of XXXX. We started a VA loan modification in XXXX of XXXX. In XXXX of XXXX we received the documents back and were told to accept it or if the payment were not acceptable that we can deny and that our mortgage company would counter back with a lower monthly payment, or they could see what they could do. Then from XX/XX/XXXX to XX/XX/XXXX we awaited to hear back about a new amount. We never heard back from them so we reached out in XX/XX/XXXX as we received a document stating that we should notarize documents for a VA partial claim. At the same time Freedom mentioned the Michigan Homeowners Assistance Fund. and we also applied with them as Plan B as that was a better option being interest free and if approved pay up to {$25000.00}. 
Keeping our current interest rate and a close amount to our original monthly payment. We went to our bank and had them notarized within the time frame and mailed them out. Then we called to investigate the status of the partial claim XXXX XXXX and they explained that we were denied as they needed more financial information, but we were not told that on the phone when we called. Throughout this process we did not get calls and neither did XXXX XXXX XXXX. They said we just needed to notarize, sign and send back. Also, were told that not only were we denied but that the program had ended in XX/XX/XXXX even though Freedom gave us forms to have them signed beginning XX/XX/XXXX. XXXX?? We were notified that the VA partial claim program ended in XXXX, and they can not proceed with that any longer. Then mid XXXX we started the Loss Mitigation process and did a VA loan modification application package. XX/XX/XXXX we uploaded the application with the required documents. Then XXXX XXXX we went back and forth with them saying they needed more documents, and we furnished them. Then on XX/XX/XXXX we saw online that our account went into active foreclosure and on the very same day that our account was in active loss mitigation stopping our foreclosure as we were told on the phone when we called them. I tried to get a cease-and-desist letter from our mortgage company as we were contacted by a local appraisal company to do a liquidation appraisal on our home, further causing mass stress and confusion. I was told by many reps that they would email me the letter and send it in three days. That never was also told that it could take a week by another rep when calling. So, we had to go ahead with letting the appraiser come into our home, which as you can imagine caused further stress as it was invasive and right before XXXX. 
From XXXX XXXX XXXX we kept in communication by calling them and just being informed with the status. At that point it was being reviewed by the underwriters and for us to just wait. Monday the XXXX of XX/XX/XXXX we were informed that we will start our 3-month forbearance trial payment period of {$210.00} a month. Then XXXX XXXX mortgage company will reach out with our loan modification documents to sign and notarize. 
Today, the XXXX of XX/XX/XXXX we inquired the status of our application with the Home Owners Assistance Fund and explained the nightmare that we have been through, and our case worker said he needed one more clarification and that as of today we were conditionally approved. So now we have many questions for the mortgage company as we want to know what we have to do to pay off the unpaid balance, after MHOAF pays off {$25000.00}, we owe still owe {$4000.00}. 
Our issue now is that we are not getting accurate information about what will happen with the unpaid balance. We have been told our interest rate would remain the same as I am a veteran and have a VA LOAN. Then we were told no it would not be honored still and be at the current market interest rate. Also, we were told we would have to do another loan modification for the unpaid balance, and we were told we could negotiate terms and add it to the loan as a deferment. Until the loss mitigation goes into active status, and they receive the application and all required documents our mortgage company said they could put us into foreclosure status again. Our case worker from the Homeowners Assistance Fund advised us to reach out to the Consumer Finacial Bureau for help in hopefully streamlining the last stage of this process. We are going ahead with the homeowner 's assistance company with their offer and would love to tack on the unpaid balance after the program pays instead of doing another loan modification that Freedom says we have to do.

This has been an absolute nightmare of a year, beyond covid years, and almost considered litigation, but just want to really get back to paying our mortage again and focusing on our business and children. 

Thank you, XXXX and XXXX XXXX