Consumer complaint received 2016-01-19 00:00:00
Product: Mortgage — Other mortgage
Issue: Application, originator, mortgage broker — 
Company: Franklin Credit Management Corporation
State: MI

Complaint narrative:
XXXX I purchased a home and the home was purchased with a XXXX mortgage, Franklin Credit. XX/XX/XXXX the home was foreclosed and I moved out XX/XX/XXXX. I never ever heard from the original mortgage holder. The Franklin Credit company threaten to garnish my pay wages and take me to court if I did not pay them. I paid them over the years, but I was late on the payments. Fast forward to XX/XX/XXXX, I was planning to purchase a new home, so I called the Franklin Credit company to try and put things in order and to try and catch up on the payments. They told me I could do this and that they would modify the loan and all the arrears would be dropped. They made it seem like this was a fresh start. I would have a lower interest rate and things would just be as if this was a new personal loan. By the way, this company never had reported any of this to the XXXX credit bureaus since I had the loan as a matter of fact, the original mortgage company did not either. So I agreed to the terms of the loan. When they sent out the new loan agreement papers, there was a trial period of 3 months starting in XX/XX/XXXX thru XX/XX/XXXX, I paid the new loan amount as agreed. After the trial period they posted the information with the XXXX credit bureaus and it was listed with all the arrears from XX/XX/XXXX thru XX/XX/XXXX. They even listed the 4 months that I had paid during the new agreement as late. I have tried several times to call and talk with this company about listing this loan as a XXXX mortgage and how could they even modify this loan and call it a XXXX mortgage when I do not own the property and there is no lien. I wrote the credit bureaus ( XXXX and XXXX ) several letters asking for assistance in this matter. I have been working with a company since XX/XX/XXXX, that said they could help me with this situation, and to no avail. I even wrote letters to the Franklin Credit company asking that they rescind the XXXX mortgage wording and re-write this a personal loan. They refuse to do anything at all. They told me this is a second mortgage and even though the loan was modified does not mean it 's not a mortgage. I stated that I no longer own the property and since XX/XX/XXXX someone else has been living there. I sent them the public records showing the new owners of this property. They told me I should stop calling them, stop sending them letters and stop having the credit bureaus send them letters, I even had finance people from home mortgage companies speak to them on my behalf. They told me this would not help at all. They will not change the information listed as a XXXX mortgage. When I asked to speak with a manager they told me there were no managers to speak with. This has hindered me from moving forward with the purchase of a new home for 1 year now, because the lenders are hesitant to give me another home mortgage loan while my credit report states I have a XXXX mortgage that has been delinquent for a long time, even though I have cancelled checks to prove that since the loan has been modified there has not been a late payment. Should this Franklin Credit company be allowed to call this loan a XXXX mortgage even though I no longer own the property. This has been a nightmare and very stressful for me. I would appreciate any assistance that this company can provide for me. Thank you so much.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation