Consumer complaint received 2018-11-13
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Freedom Mortgage Company (TX)

In XX/XX/XXXX our home was flooded by Hurricane Harvey, almost 15 months ago. Since that time we have been paying monthly rent to live in an apartment in addition to paying our monthly mortgage payment since the home is uninhabitable. We have not missed nor have been delayed on any payments. The City of XXXX declared our home substantially damaged, which means that we are required to elevate the existing XXXX house in order to receive City permits for renovation, or we must tear the house down and build a new, elevated home. We have opted to tear the house down and build a new, elevated home because costs to elevate the existing house and complete post-flood renovations are estimated to cost $ 350,000- {$400000.00} or more. 
Our flood insurance claim of {$150000.00} was settled in XX/XX/XXXX. We owe approximately {$230000.00} on our existing mortgage, which will leave a remaining balance of approximately {$82000.00}. 
The issue we face with Freedom Mortgage is that they are holding the insurance claim funds in escrow despite our repeated requests to apply the funds to the payoff of the mortgage. 
I have spoken to numerous representatives in their Customer Care Center and in the Loss department. We have made numerous requests over many weeks/months. I have spoken to XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX XXXX, XXXX XXXX, and likely others. No single person takes ownership over our case, which means we must explain our request brand new to every person. When I have asked to speak to the same employee again, I am told the person is busy or unavailable. 
They tell us that we should pay the remaining balance of approximately {$82000.00}, at which point they will apply the insurance funds to the balance of the mortgage. But they refuse to issue an official payoff letter nor provide this process in writing. In my attempts to receive what we need, I have requested and have received two official payoff letters from them. Both state the full amount of the loan, approximately {$230000.00}. 
We have been approved at another bank for a new construction loan, and they will assume the remaining balance of our current mortgage in our new construction loan, but they can not do this without a formal payoff letter that states the true payoff amount of approximately {$82000.00} and a clear statement that in paying this amount, the lien will be clear. 
At one point I even called Freedom to make the payment myself, desperate to move past this, and I asked for instructions on how to wire the funds. The Freedom employee I spoke to was uncomfortable giving me the instructions due to concern that the Loss department would not apply the flood insurance money to the remaining balance. She, herself a Freedom Mortgage employee, did not want to move forward as she was worried that we would make the large payment of funds without guarantee that they would pay off the loan with the funds held in escrow.

We think that Freedom Mortgage is acting unethically. They have zero motivation to apply the flood insurance funds to our loan. Every month they collect a mortgage payment from us, and they are likely collecting interest on the flood insurance funds held in escrow as well.

We need your help to rebuild our lives. Please help us move past this horrible event and get back home. Please, please help us.