Consumer complaint received 2025-04-18 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Freedom Mortgage Company
State: SC

Complaint narrative:
On XX/XX/XXXX our home in XXXX, SC obtained significant damage due to XXXX. Our XXXX XXXX XXXX is covering the entire amount of all costs associated with damage to the home as well as incidentals like tree removal, rental of an apartment, pod rental, etc. For claims for repairs over a certain amount, Freedom Mortgage requires that some funds be sent to their Loss Draft Department. XXXX sent XXXX separate checks to Freedom Mortgage. The first check was for {$49000.00} and the second check was for {$12000.00}. The total sent is {$62000.00}. 

We have requested the following draws for services rendered and included the Waiver of Lien forms as required by the mortgage company : XXXX XXXX XXXX XXXX XXXX {$17000.00} for removal of damaged portions of the home that contained asbestos. This had to be done prior to any contractors working on the repairs. 
XXXX XXXX {$3300.00} for air quality testing before, during and after the asbestos removal process as required by the State of South Carolina. 
XXXX XXXX XXXX XXXX {$10000.00} down payment to accept his contract for repairs. 
XXXX XXXX XXXX XXXX {$27000.00} for the first phase of repairs ( repair of porch, rafters and new roof, etc ) Per the contract attached, this company required the down payment, a draw at XXXX XXXX completion, XXXX XXXX completion and upon final repairs. This particular invoice is for XXXX XXXX of HIS total {$62000.00}. 

Freedom Mortgage requires an inspection with each draw request after each phase has been completed. The first inspection showed the removal of kitchen, living room, dining room and hall ceilings that contained asbestos as well as the entire dining room wall. The second inspection showed that the remainder of the porch ceiling and columns had been removed and replaced and that the damaged rafters and center ( ridge ) beam were replaced. There was a full roof replacement also. 
The insurance funds that we have received to date from Freedom Mortgage : XX/XX/XXXX {$30000.00} XX/XX/XXXX {$8700.00} The total designated insurance funds received from Freedom is {$39000.00}. 
Our draw requests have been for a total of {$58000.00}. The amount we have received for services already rendered is {$39000.00}, which is {$19000.00} short of what is needed for work that has been completed. XXXX and XXXX have been fully paid as well as the {$10000.00} down payment to XXXX XXXX XXXX XXXX. However, Freedom Mortgage has paid only {$8700.00} of the invoice totaling {$27000.00} for XXXX XXXX XXXX XXXX. The mortgage company is refusing to pay for what has been done/completed ; the contractor rightfully will not proceed with additional repairs until he has been paid as requested per the attached contract. A copy of this contract has been provided to the mortgage company per their requirement. Our insurance company is covering all expenses. Our complaint is not with the contractor or insurance company but with Freedom Mortgage withholding funds designated and approved by our insurance company. If a homeowner takes insurance payments and does not make repairs, that is fraudulent. If a mortgage company has designated claim funds from an insurance company and refuses to release as needed after repairs are done is equally as fraudulent. 
As of XX/XX/XXXX at XXXX, Freedom Mortgage Loss Claim Department verbally verified that there is {$22000.00} of insurance funds still available for repairing our home. I have made multiple calls to try to get the correct amount to pay the construction company. That company will not proceed with repairs until they have been paid. We are still not able to live in our home. The ceilings in the kitchen, dining room and hall need to be replaced. The paneling in the living room and kitchen was damaged during the abatement process and will need to be removed and sheetrock installed. The dining room wall sheet rock needs to be installed. Painting of dining room, kitchen, hall and laundry room ceiling needs to be done. Lastly will be the refinishing of hardwood floors in the dining room, living room and hall. You can see from the contract with XXXX XXXX XXXX company that his total will be {$62000.00}. 

I have called numerous times regarding getting the funds. Our insurance approved all of the repairs and we have met all of the things required of us by the mortgage company. From my multiple conversations with the Loss Claims Department, I have been told that they make a determination as to whether the requests will be paid in part or in whole. I was told twice last week that we need another inspection before another draw will be done but nothing has happened since our last inspection due to the builder waiting for payment. I was told that no further payments will be made at this time. Tr website ( screenshot provided ) states that they will monitor repairs. This monitoring should be the inspections with which we have complied. Monitoring should not be to determine if already insurance approved funds will be dispersed. 
When I spoke to Loss Claims Department on Wednesday, XX/XX/XXXX, the employee emailed my request to pay a percentage of the contractor total ( not total of all contractors ) was sent to the management team as well as the person over our account. I have never heard from any one. 

Freedom Mortgage Companys website says : Loss Claims Greater than {$40000.00} ( Greater than {$20000.00} for USDA Loans ) For losses of more than {$40000.00}, you will need to send the claim check to us, which we will deposit in a restricted escrow account while we monitor the progress of your home repairs. Please be sure to endorse the check before you send it to us. 
Also required are the adjusters report, signed and accepted proposals from your contractors, and other documents. Once we have all these documents, well explain the next steps to have the funds released and how we will monitor the progress of repairs to confirm that they have been completed. 
Insurance claim funds being held by Freedom in escrow are typically paid in stages, beginning with an initial payment, followed by additional payments based on the completion of repairs. If there are funds left in the escrow account after all the repairs have been paid, these funds will be sent to you. 

As stated on their website ( above ) the mortgage company will pay in stages. The initial payment for XXXX XXXX XXXX was the {$10000.00} downpayment. The second stage is the completion of the work described on the {$27000.00} invoice. As previously stated, this is XXXX XXXX of his total. Once these funds held by Freedom Mortgage are exhausted and the job is totally completed, our insurance company will THEN send any balance needed directly to us to complete the contractors repair total. This is a depreciation amount payable ONLY to us at the completion of work. Our only hold-up to getting the repairs done and moving back home is the mortgage company. Please note that we have met all of their requirements for these funds to be dispersed. 
In addition, I have been paying our mortgage payments on time even though we have been unable to live in our home for months. As senior citizens we are not in a financial situation where we can get a personal loan to pay for the repairs. Nor do we wish to use equity in our home -- -we are getting multiple weekly calls, emails and text messages from Freedom Mortgage regarding this option. 
For your reference I am attaching all invoices, waivers, and verification of payments sent to Freedom from our XXXX XXXX XXXX as well as a snapshot of Freedoms website regarding payments/procedures and a snapshot of XXXX of the many attempts from Freedom to get us to use home equity funds. 
Please note per Freedom Mortgages completed Waiver of Lein form for XXXX XXXX XXXX XXXX that he will not hold Freedom Mortgage responsible once the invoiced amount has been paid. He certainly has the right to legal action in order to be paid for services rendered. 
I am respectfully asking your assistance to resolve this matter.

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