Consumer complaint received 2019-03-20
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: Freedom Mortgage Company (NV)

In XXXX of 2018 we fell behind on our mortgage payment due to a demand by the community association to landscape our backyard per their regulation ( licensed contractor ).  Before this time, we had been struggling because our eldest son was having some serious health issues came home to live with us and transition out on his own. In addition to this, our vehicles brokedown which we recently paid off, and we had to replace. However, in spite of all this, we were still managing, but when the demand for the yard to be completed. It just took us over the edge. So in XXXX, XXXX Freedom Mortgage recommended that we discuss Loss Mitigation to help resolve our issue. We submitted the paperwork. In the meantime, they did not stop reporting to the bureau, they did not offer lower payments of any kind. I took them 3 months to deny us and then we found out because we were calling in weekly to speak with our assigned associate and they denied us because they did not know how to read a bank statement and said that account information was missing, even though it was all on one statement. After doing some research, I realized that they  collected information according to their own forms that they were not supposed to. During this Loss Mitigation period they had people coming to our home taking appraisals and pictures. The reps were saying to us that they were going to proceed with foreclosure, etc. So we started the Loss Mitigation process again in XXXX and they denied us within 30 days requesting an appeal stating that our housing expense was greater than 40 %, which it was not, also the amount of bills that they listed that we have to pay was incorrect, and the monthly income they were reporting was incorrect. So I appealed by XX/XX/XXXX, but also informed them in the letter that over the last six months we were able to get our household caught up, our son moved out, we found out that our insurance through one of our jobs had increased but we could change it later at open enrollment and recover $ 550+ dollars a month, etc. During all this time, we are 3 months behind but beginning to stabilize. Everyone and their mother was telling me how banks can offer forbearance, put the arrears on the end of the loan, etc. Even if we were offered a period of time with lower payments, we probably wouldn't be in such a mess now. But our home has A LOT of equity in it. And I am sure this non-compliant bank is focused on stealing it to make a profit. In the meantime, we recieved a demand letter for forclosure during the Loss Mitigation process which is non-compliant with the code of federal regulations and we were told that a foreclosure noticed would be posted XX/XX/XXXX. When my husband followed up with them in XX/XX/XXXX and they said that as soon as our letter was received it was denied on XX/XX/XXXX. On XX/XX/XXXX we called in to schedule payments and they took them. Then we received a new application for Loss Mitigation and another letter stating that our Loss Mitigation procedure was " facially complete '', they would not foreclose, they need to receive these documents. So I complete the new loss mitigation application, and turn in the new information, new bills, requesting forebearance by XXXX XXXX, the bank calls and says that we were denied again and have to write an appeal. They will look at our new application but there is nothing in it that would change their mind at this point. Lower expenses, increased income, recovery of {$550.00} a month to increase net income, and your mind still wont change. So I began to do research and found a lawsuit filed in MD in 2018 about how non compliant this bank is doing their Loss Mitigation proceedings. I began to do research and found that they are supposed to send me details on how they came to their denial because how can you appeal FAIRLY if you cant see how they are coming to their conclusions. I requested information and they sent my old application back and said they are going by the information I gave them which I told them was incorrect. SMH. So I write them an appeal stating our reason, that I want them to send me the information I am entitled to see, that I want them to remove the account representative because there appears to be some type of biased judgement going on, and that I wanted a manager to review our case. I stated the laws that they are breaking and what was supposed to be followed and I sent with this the pay increase that my husband just received in addition to mine and the decreased bills. They sent me a denial, and stated it is denied because of what we stated previously. Really? How unprofessional!!! Everyone around me has been in way way worse situations than we are in and have received help from institutions with lower ratings than this bank and they can not help us?! Even after I went to counseling agencies, etc to find out what could be done and they stated the bank should easily be able to help you?!!! They stated we could not afford post modification and we are still going to report or start reporting ( lol ) lates and during this process again, illegally, I received a demand letter and I am making two payments this month. I also noticed that they were none compliant in posting my full payments and would hold part back and not document on my statement why. Just " unapplied '' ... I am making the full payment, really?! According to the rules " unapplied '' only applies if you receive a forebearance and lower payment. I could easily be set up on a payment plan but they basically have used the Loss Mitigation process to unqualify me out of our home, that we worked hard for 15 years to get. And put money down when we were not required. I have XXXX kids and one that is XXXX XXXX XXXX XXXX. This is the worst bank in the world that is misusing and abusing our nations veterans. I hope to the XXXX XXXX XXXX in XXXX that the a class action lawsuit is filed and won and that Freedoms Mortgage loses its privileges to, based upon the over 900 non-compliant complaints, acquire new loans. This is what Freedom Mortgage is doing instead of helping those that need assistance. " Some mortgage firms have generated revenue in recent years through rapid, repeated refinances of veterans loans, a process called churning that can make money for the lender but result in unexpected costs to the borrower, according to XXXX. Some lenders perform the refinances themselves, while others charge above-market rates, setting the servicemember up for the next refinance, the agencys executives have said. '' And the government needs to continue to punish them. I am slowly but surely making my complaint known to the Attorney General and FTC. I will also seek eye witness news, because this is why you see SOME veterans homeless. It is so sad how many people have mentioned being in a worse situation than we are and their institution helped them. SMH. FREEDOM mortage? ENSLAVEMENT Mortgage ... makes me wonder how many individuals with this same case are minority as well. Before my mortgage broker told us our bank at close, I thought, I do not want it to be Freedom Mortgage because at that time their incompetent staff was reported not to know how to do refinances ... guess what, I tried to refi to get cash out MONTHS prior to this problem, and they proved the reports right, they are incompetent and do not know how to do refinances either unless they are illegal and in their favor.