Consumer complaint received 2024-02-20
Product: Mortgage — VA 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 (NV)

During the Covid-19 crisis the VA offered a helping hand to borrowers who were affected financially by the Pandemic in the form of Covid Forbearance plan. Under the plan, service members could elect to defer their missed payments to the end of the mortgage period. The missed payments would simply be added to the end of the loan and no other terms would be changed. On XX/XX/XXXX, in the middle of the forbearance program, the VA decided to cancel the option of deferring the payments without offering any other alternative. This has left many service members at the mercy of the lenders. While some lenders acted honorably, others, like piranhas smelling the blood of a helpless victim, started tearing at their financial flesh. According to an XXXX article ( link attached at the end of letter ) many service members were forced into new terms that they could ill afford. Many veterans could only helplessly watch as their payment doubled. With the threat of pay us more or lose your home most veterans have no choice but to give in. The few that have not given in are being pushed by their lenders even though the VA strongly protested these practices. My own lender, Freedom Mortgage, tried to force me into paying {$540000.00} over the life of the loan in addition to the amount that I originally signed for. Freedom Mortgage and their law firm, XXXX XXXX XXXX resorted to duress tactics that seem more in line with loan sharks, than respectable firms. They showed no qualms using arm twisting, threats, and a campaign of misinformation for me to acquiesce to their demands. 
One prime example of the above is XXXX XXXX XXXX refusal to comply with the VA circular number XXXX dated XX/XX/XXXX ( see link attached below ). 
The VA, in acknowledgment of its poor handling of the Covid forbearance and seeing the chaos that had ensued in its wake, has issued VA circular number XXXX. In said circular, the VA implores lenders to apply a blanket moratorium on foreclosures until XX/XX/XXXX. This is done so the VA can produce a suitable rescue plan for the affected service members. Ever since XX/XX/XXXX I have repeatedly asked for written confirmation that the foreclosure on my residence will be held until XX/XX/XXXX. Although I have called and sent numerous messages. I was denied written confirmation by the lender and their law office. Furthermore, in bulletin number XXXX the VA petitions lenders not to hurt service members credit report with negative information on affected loans. However, the bank law firm has chosen to report such negative credit information contrary to the VA guidelines. 
On XX/XX/XXXX I sent Freedom Mortgage a secure message via their portal. In the message I advise them to remove all negative credit from my report or I will take this matter further. On XX/XX/XXXX I received a reply that the bank is investigating the matter and will get back to me on XX/XX/XXXX ( Please see response attached here as XX/XX/XXXX response ). XX/XX/XXXX came and went and I did not hear anything from the bank. When I checked the online portal I was dismayed to discover that my letter to the bank disappeared from their portal. Alarmed, I quickly called Freedom Mortgages Lost Mitigation Department and spoke with XXXX ( XXXX XXXX XXXX ). XXXX could not explain this but he let me know that he will send me a XXXX copy ( attached here as XX/XX/XXXX response ). XXXX promised me that all negative information will come off my credit report. XXXX advised me to be patient since the bank is overwhelmed with removing negative credit information on all their VA loans. XXXX assured me that eventually my turn will come. I asked XXXX if he could please provide me with a written notice that the foreclosure had been frozen until XX/XX/XXXX per the VA circular. XXXX advised me that he is unable to do so. On XX/XX/XXXX, when the negative info was not removed and there was no response to my email, I called again and spoke to XXXX ( employe number XXXX ). She had also advised me to be patient and promised me that the negative info will be removed. Again, I asked her for a written confirmation that the foreclosure is held until XX/XX/XXXX per the VA circular. Without providing an explanation, XXXX let me know she could not provide me with such a confirmation. On XX/XX/XXXX I finally received a reply from the bank. It was XXXX days after the promised response day, and a whole month after my initial letter. In the letter ( see attached below marked as decline letter ), the bank simply declined to follow the VA guidelines. They let me know that this was also the decision of their law firm XXXX XXXX XXXX. 
I believe the bank than a psychological war against myself and other veterans. A war of attrition, with a singular purpose of grinding down veterans to accept the banks exorbitant refinance options. In the links I have attached below, other veterans also report feeling pressure from their landers to accept their exorbitant new loans. 
I have exhausted all options and require your urgent assistance in the matter. 

Very respectfully, XXXX XXXX XXXX XXXX Pl, XXXX XXXX XXXX NV XXXX Cell : ( XXXX ) XXXX Email : XXXX Lender : Freedom Mortgage Loan number : XXXX Please see attached links below to articles from XXXX XXXX XXXXXXXX XXXX XXXX ) detailing how lenders have been taking advantage of service members misfortune. 
https : XXXX XXXX is one of an untold number of veterans who ended up with much higher mortgage payments because they were pushed into loan modifications. Those modifications rolled the missed payments back into the mortgage but with a new loan that had to be at current interest rates, which are about double what they were just two years ago. 
XXXX XXXX XXXXXXXX XXXX XXXXXXXX first reported on the problem last XXXX, lawmakers wrote to the VA secretary , who quickly put a pause on all foreclosures of VA loans In the meantime, many veterans say their loan servicers are still pushing them to either pay all the missed payments immediately or accept costly loan modifications. 

VA circular number XXXX dated XX/XX/XXXX XXXX XXXX XXXX