Consumer complaint received 2024-12-12 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: Freedom Mortgage Company
State: UT

Complaint narrative:
In early XXXX  I lost my job, which caused financial hardship and led to missed mortgage payments. Despite this, I actively sought to resolve my financial issues and, by early XXXX XXXX secured full-time employment. With a stable income, I was determined to get back on track with my mortgage payments and save my home.

Foreclosure Notice and Loss Mitigation Efforts : On XXXX XXXX XXXX, I received a Notice of Sale for my property, which prompted me to reach out to Freedom Mortgage. On XXXX XXXX XXXX I called the mortgage company to explore options for keeping my home and informed them that I could resume making payments. I also applied for loss mitigation assistance.

On XXXX XXXX XXXX I received confirmation that Freedom Mortgage had received my completed loss mitigation application. The next day, on XXXX XXXX XXXX, I received a letter stating my application was approved for a loan modification and that the foreclosure sale would be suspended.

Loan Modification Approval and Confusion : In early XXXX XXXX I accepted the loan modification offer over the phone and was assured that I would receive final paperwork to sign and return, but I was unaware that it was sent to a non resident co borrower in a different state. On XXXX XXXX XXXX I called Freedom Mortgage to confirm that the foreclosure sale scheduled for XXXX XXXX XXXX had been canceled. They advised me to contact the foreclosure attorney, who confirmed that the sale had been suspended.

In XXXX XXXX  I found a letter on my door stating that my request for assistance was approved, but the final documents for the modification had not been returned. The letter asked me to respond within seven days but did not include a date. Around this time, my father informed me that he had received a letter from Freedom Mortgage requesting additional information about my application.

Reinstatement Efforts : On XXXX XXXX XXXX I called Freedom Mortgage to address the missing documents and the status of my loan modification. I was informed that I was a day too late to resume the loan modification process and that my only remaining option was reinstatement. I requested a reinstatement quote during this call.

In the days that followed, I made multiple calls to the foreclosure attorney and Freedom Mortgage to follow up on the reinstatement quote. On XXXX XXXX XXXX I received an email about a change in my account. I attempted to call Freedom Mortgage but was disconnected, and when I tried again, I found that their office was closed for the weekend.

On XXXX XXXX XXXX I finally received an email with the reinstatement quote in the afternoon. However, the quote was valid only until the end of that same day, giving me insufficient time to arrange payment.

Foreclosure Sale : On XXXX XXXX XXXX, before making the payment I contacted the foreclosure attorney to confirm the reinstatement amount, since the quote was only good for one day. I was informed that my house was about to go for sale within the hour. I said that I had not been notified of the sale and the attorney advised me to call Freedom Mortgage and request a postponement, but when I called, Freedom Mortgage stated they couldnt transfer me to the single point of contact and wouldnt be able to help.

The property was sold at the foreclosure sale that day for {$250000.00}. Shortly afterward, the third-party buyer listed it for {$370000.00}, significantly above the sale price and depriving me a windfall of {$230000.00}.

Post-Sale Efforts : Early XXXX XXXX XXXX, I called the attorney and was told to call the mortgage company to have the sale canceled as I was ready and able to make the payment before the sale happened. She told me that she would do the same and we would be in touch although she never reached out about the mortgage again.

The Freedom agent I spoke with said they couldnt assist but promised to have someone contact me. No one followed up. I consistently called explaining the situation and requesting assistance and kept getting told I would be connected with the correct department.

On XXXX XXXX XXXX I called Freedom Mortgage once more and was directed to send an email to a specific XXXX  address, that they were the ones who would start the process and they would get back to me within 24 hours. I recounted all prior communications and steps I had taken in the email, but once again, I did not receive any response.

Co-Borrowers Death and Procedural Confusion : One of my co-borrowers, Maureen Hollingsworth, passed away several years ago. I promptly submitted her death certificate to Freedom Mortgage, yet they continued to send documents requiring her signature. Even recent foreclosure notices and reinstatement paperwork had her listed. This failure to update their records caused unnecessary confusion and delays throughout the foreclosure process.

Persistent Efforts and Communication Failures : I made repeated efforts to resolve the default and prevent foreclosure. I made numerous phone calls to both Freedom Mortgage and the foreclosure attorney that at first seemed to be helpful and then just proved to delay my actions. Despite these efforts, I was never connected with a responsive single point of contact, as required under federal and state laws. This lack of communication severely hindered my ability to resolve the default and reinstate my loan.

Since the sale I have continued to get notices and statements telling me to make payments and to apply for loan modifications to save my house. My efforts to communicate with Freedom mortgage have gone mostly unanswered and have lead me to move forward with my own legal counsel.

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