Consumer complaint received 2023-02-28
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Freedom Mortgage Company (VT)

On XX/XX/XXXX the Vermont Homeowner Assistance Program sent {$11000.00} to Freedom Mortgage to cover the balance of my forbearance and cure my delinquency through the month of XX/XX/XXXX, making my first payment after the forbearance due XX/XX/XXXX. They have not applied the funds, despite confirmation from both VHAP and VT Legal Aid that the funds were distributed and sending documentation as proof.

During this time, I have received multiple phone calls from Freedom regarding the issue, and been given different and contradicting information from customer service reps each time Ive called. on XX/XX/XXXX they told me I was behind {$120.00} due to my taxes increasing, despite VHAP paying through the month of XXXX. I paid that amount on that day trying to do the right thing because I didnt want my account to be delinquent. Then I received another phone call from freedom XX/XX/XXXX informing me that I owed an extra {$940.00} that was due XX/XX/XXXX which includes a {$21.00} late charge. The representative informed me he would put a ticket in for Freedom to apply the funds from the state and to waive the late fee, but stated the state has still not sent the funds and encouraged me to call them to ask what date it would be sent. 

A couple days later in the mail I received a statement from Freedom Mortgage dated XX/XX/XXXX, so before I called on the XXXX, that does show they received the funds from VHAP back in XXXX ( they list XX/XX/XXXX ) and on the statement it has a section for account information and listed underneath is the outstanding principal, interest, rate, etc. and then unapplied funds for which it says {$940.00}. Im not sure how the representative put a ticket in on the XXXX for some thing that was already showing on my account as unapplied funds on the XXXX according to my mortgage statement, or how he was not able to see that they have in fact, received the funds from VHAP.

Throughout this process, I have been working with Vermont legal aid ( XXXX XXXX ) and I was encouraged to make a complaint and also send a notice of error to Freedom Mortgage. Vermont legal aid was also going to reach out to the VHAP program manager who could then reach out to freedom mortgage to see whats going on. Im waiting to hear back regarding that. But I no longer trust the amounts given to me by Freedom Mortgage representatives, they worked with the representative at VHAP to determine the amount that would bring my mortgage current through XX/XX/XXXX, Im not sure why I was asked to pay that {$120.00} on XX/XX/XXXX or why its still saying that my account is delinquent {$940.00}. 

Despite being low income, I had a plan for after the forbearance to take out a jr. lein until I found out about the VHAP program, and other than the forbearance period ( which Freedom Mortgage knew about, and approved ) I have never made a late payment and I have pretty good credit score in the 700s. I dont want this to have a negative impact on my credit score. 

I also had an issue with Freedom Mortgage as my forbearance was ending, prior to all of this. I called to make the arrangements in XX/XX/XXXX, and they spoke with me about the programs available, told me it was a waterfall effect, and they would see if I qualified for any of them and I would be sent a letter with my options. When asked if I could afford my mortgage payments I said it would be nice if they were lowered because its difficult for me on a fixed income, Im on SSDI, but I would like to resume my regular payments if refinancing would increase my payment amount. I was going to take a look at the list of options and then decide from there, however, the Freedom Mortgage representative signed me up without my consent for the refinance plus Junior lien option and I was sent paperwork for that to sign in front of a notary. I called back and the representative I spoke to that time recommended that I dont take the refinance because it would increase my interest rate from 2.75 % to over 7 % and increase my payment from {$840.00} to {$1200.00} per month. The only person this would benefit is Freedom Mortgage, not me as low income home owner and Im glad I read the paperwork well before signing because thats not what I was expecting to receive. I was instructed to file a complaint with loss mitigation through email, and thats what I did for that issue, and they did send me the updated paperwork for only the Junior lien. Then I was approved for the VHAP grant and my caseworker at Vermont legal aid instructed me not to sign the paperwork from Freedom Mortgage. Thats when the issue with the funds as described above came about. 

So Id like to make a formal complaint regarding the completely different information I received from various customer service representatives at Freedom Mortgage, that they attempted to have me sign paperwork for a loan refinance that in no way had any benefit to myself, or would help me continue to make my mortgage payments. They have received funds from VHAP that they havent applied to my account, and are still saying that I owe them money and took a payment from me ( {$120.00} ) that Im not sure they needed to and is now asking me to pay even more in order to say current, with a late fee.