Consumer complaint received 2024-12-16 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: Freedom Mortgage Company
State: NJ

Complaint narrative:
During XXXX XXXX, Freedom Mortgage was offering a Forbearance Plan for customers who were having difficulty with mortgage payments. I applied for the plan with Freedom Mortgage since my wife had been let go from her teaching position at an early childhood learning school. I was a payment behind because we could not afford it the first month after her layoff. Our past due balance for XXXX months payment was {$1700.00}. 

On XX/XX/XXXX I applied for the Freedom Mortgage Forbearance Plan.. On XX/XX/XXXX I received a letter in the mail saying that we had been approved for the Forbearance Plan. The Forbearance Plan began on XX/XX/XXXX and ended on XX/XX/XXXX. On XX/XX/XXXX, I received a confusing letter from Freedom Mortgage saying that I had been been sent a notice saying they haven't received my application, which was a mistake on their behalf. Then on XX/XX/XXXX, I received a letter saying my Forbearance period would be ending on XX/XX/XXXX. Finally on XX/XX/XXXX I received a letter stating that my Forbearance Plan had ended. 

According to the paperwork, my mortgage payment would be suspended during that time but you could still make payments if possible, which Freedom Mortgage recommended. However no payments had been suspended at all. I did miss a single payment earlier in the year and then was able to make the normal payments for every other month. It was my understanding that this amount would not be forgiven, but suspended, so any payments would help to clear a past due payment and then the loan itself. I made the following monthly payments ; XX/XX/XXXX - {$1700.00} XX/XX/XXXX - {$1800.00} XX/XX/XXXX - {$1800.00} XX/XX/XXXX - {$1800.00} XX/XX/XXXX - {$1700.00} XX/XX/XXXX - {$1700.00} XX/XX/XXXX - {$1700.00} There were no payments missed payment during the Forbearance period. In fact, I made an additional payment during that time period. It was my understanding would that I would have still been on track but at the least cleared my past due balance. This in fact was not the case at all. I was still billed by Freedom Mortgage for the normal months payment and the missed payment from before I applied and was approved for the Forbearance Plan. I continued to make my scheduled monthly mortgage payment but was unable to pay the additional month that I had missed according to Freedom Mortgage. The missing payment showed on my account until XX/XX/XXXX, when I was finally able to make an additional payment to remove the past due balance. 

Since the Forbearance Plan I was enrolled in, was never applied to my account, I was hit with late mortgage payments. I called Freedom Mortgage numerous times from XXXX of XXXX through XXXX of XXXX. They continue to argue with me that my past due balance had not been paid, when in fact my account was in forbearance and was paid time and time over in XXXX. They refused to remove the past due balance on my account. I even discuss having them roll it into my remaining payments, but they refused. 

Now here in XXXX, I have gotten myself into a better financial standing with a new career. This disaster of the Forbearance Plan has greatly damaged my credit score, and now my ability to apply for a home equity loan because of my so called missing mortgage payments.

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