Consumer complaint received 2025-03-11 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: Freedom Mortgage Company
State: OH

Complaint narrative:
Correspondence from VA about my loan modification :. XXXX has never received a modification of his VA loan. Back in XXXX, XXXX XXXX was impacted by the COVID-19 Pandemic. For a period of time, the VA offered a temporary option to assist Veterans bring their mortgage current called a Partial Claim. When VA finally was able to pay the Partial Claim amount of {$34000.00} to Freedom Mortgage, this money brought XXXX XXXX mortgage current. He currently owes the VA {$34000.00} as the Partial Claim would be the equivalent of a silent second mortgage. No payments are due on a recurring basis and he is not being assessed any interest. The Partial Claim balance would not be due to the VA until XX/XX/XXXXXXXX  when his VA loan is set to mature. Should XXXX XXXX decide to sell the property or opt to refinance into another mortgage, the Partial Claim balance would be due at that time. 

When XXXX XXXX requested assistance again due to a new default, his servicer asked the VA for permission to modify his loan with an interest rate that is more than 1 % higher than he currently has. They stated that they were not able to offer him our newest retention option, the VA Servicing purchase program since he had not made six payments from when the Partial Claim brought his mortgage current. This is a misunderstanding on Freedom Mortgages part. A Veteran does not qualify for the VA Servicing Purchase program when six payments have not been made since the loan closed or since it was last modified. I emailed Freedom Mortgage on XX/XX/XXXX that XXXX XXXX not making six mortgage payments since the Partial Claim was paid is not a justifiable reason to not consider him for the VA Servicing Purchase program. I instructed Freedom Mortgage to re-review XXXX XXXX again for assistance. On XX/XX/XXXX, they sent him the denial letter. 

Hopefully, this provides some context to assist you help your client. I can not speak to the other things that Freedom Mortgage is doing but can offer the above to help clarify things some. 

Thank you. 

XXXX XXXX XXXX XXXX XXXX ext. XXXX From my attorney to the VA : Dear XXXX XXXX : I represent XXXX XXXX in the above captioned foreclosure matter. I spoke to XXXX XXXX today and he advised me that the VA denied his application because Freedom Mortgage said that no application was submitted. This is a lie. Attached is a letter from Freedom confirming that they received the loan modification application, and the subsequent denial letter. According to Freedom, XXXX XXXX was denied because he defaulted in the first month after his last modification. They claim that he does not qualify for the XXXX program because he did not make at least six payments. 

The problem here, though, is that Freedom Mortgage, and not XXXX XXXX, is the cause of all of this. After Freedom mortgage modified his loan, XXXX XXXX attempted to timely make the agreed upon mortgage payments. Freedom REFUSED to accept it unless XXXX XXXX paid an additional {$5900.00} in attorneys fees which Freedom claimed that they did not include in the loan modification. 

There is no justification for not including the attorneys fees in the modification to begin with. There is no justification for requiring the borrower to pay that cost up front in order to accept the modification. Is there any way that the VA would consider granting XXXX XXXX an exception in this instance and allow him to receive a modification? This is not about XXXX XXXX not being able to pay the monthly modified payment. Freedom is going out of their way to stop him from saving his home, and unless the VA will provide an exception, XXXX XXXX is going to be forced to file a bankruptcy. 

It is also very concerning to me that Freedom told you that we did not apply for a modification. That is a flat out lie, and I can prove it, as you can see from what is attached. 

XXXX : XXXX XXXX XXXX XXXX XXXX ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, OH XXXX Phone : XXXX Fax : XXXX XXXX Freedom Mortgage is not giving me correct information or working with me to modify my VA home loan due to hardship experienced. The VA has told them what to fix but they are claiming to have submitted my loan modification to the VA for the approval but the VA says they havent. Im at risk of foreclosure and bankruptcy because of this.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation