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Freedom Mortgage Loan Modification – Problems & Solutions

Freedom Mortgage Loan Modification – Problems & Solutions

Freedom Mortgage Loan Modification – Problems & Solutions 150 150 The Law Office of Nadia K. Kilburn

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Freedom Mortgage Company is a residential mortgage servicer that specializes in working with loans that are in default.

Chances are, if you are working on a loan modification with Freedom Mortgage, you’re having a difficult experience working with them.

So, if you’re struggling with them – you are not alone!

Read on to learn how to contact Freedom, how to deal with their loss mitigation department and how to apply for a loan modification.

Additional Resources:

Here’s how to prevent a foreclosure if you are behind on your mortgage payments

Here’s what you need to know about any foreclosure notice you may have received

How do I contact Freedom Mortgage?

Here is how to contact Freedom Mortgage if you are having trouble paying your mortgage:

  • If you haven’t already done so, create your “online portal” so you have access to all the documents Freedom issues related to your loan
  • Call Freedom Loan Servicing’s loss mitigation department at: 855-690-5900
  • Fax their loss mitigation department at:  866-505-0948
  • Email documents to their loss mitigation department: lossmitigation@freedommortgage.com (this email address is used for documents only – documents will be received and attached to your account but you will not receive email communication back from Freedom)

What do I do if I get a letter saying that Freedom Mortgage is now my mortgage servicer?

Freedom might buy the servicing rights of your mortgage in the middle of your loan modification review.

It can be very distressing to be in the middle of your modification review and then receive a “goodbye letter” from your mortgage servicer telling you that Freedom Mortgage is taking over your file.

These are some things you can do to help the service release process go smoothly.

1. Be proactive

Don’t wait for Freedom to reach out to you! As soon as you find out that your loan is going to be service released, start tracking your loan with Freedom.

Start calling the new lender every 48 hours and ask the the same question each time:

“Has my loan boarded yet?”

You cannot get going on your loan modification again until your loan has populated in Freedom’s system so it’s your job to call regularly so you can catch the exact moment when your loan has boarded so you know the exact moment when you should submit your documents again.

If you wait for Freedom to contact you, you will be waiting several more weeks.

2. Don’t be fooled by your old lender’s lies!

Assume that no information from the old lender will transfer and be prepared with a brand new loan modification package.

If you were in the middle of a loan modification review with your old lender, don’t believe them when they tell you that everything will fully transfer over. You cannot expect to just pick up where you left off.

You should treat the service release as if you’ve been pushed back to the beginning of the process. Gather your financial documents again and UPDATE EVERYTHING so all your pay stubs and bank statements are recent, within the last 30-60 days.

3. Get the updated application from Freedom as soon as you know about your service release

Each lender has a different application form that accompanies your modification request. Even if your loan hasn’t boarded in the new lender’s system yet, you can still request that your new lender send you a blank copy of THEIR loan modification application so you can work on it and get it ready as soon as possible

4. Don’t be afraid to submit your loan modification package even if you don’t have your loan number yet!

You may not have your loan number right when you’re ready to submit your modification package. If your loan modification package is updated and ready to be submitted, don’t let your lack of loan number stop your submission.

Instead of including the loan number on the application, write your social security number on the loan number line instead.

When you finally get your loan number, you can update your documents and re-submit them with your loan number but the benefit will be that your review will already be opened.

Freedom Mortgage’s five loss mitigation options to help you avoid foreclosure

Unless you decide to reinstate your loan (meaning – unless you can pay back all the payments you missed at one time), familiarize yourself with the 5 loss mitigation options offered by Freedom.

You have to apply and receive Freedom’s approval to move forward with one of these options.

  • Loan Modification: A loan modification is a new loan with new terms that allows you to resume mortgage payments without having to pay everything you owe all at once. Usually, your missed mortgage payments get added to your total principal balance and become due at the maturity date of the loan. It is common for loan modifications to offer reductions in interest rates, extended maturity dates, and sometimes – they lower the monthly mortgage payments.
  • Repayment Plan: A repayment plan is an agreement that allows you to resume your regular mortgage payment and pay an extra amount on top of your mortgage payment until you’ve paid back all your missed payments. Once you have paid everything back, you continue making your regular monthly mortgage payment.
  • Forbearance: A forbearance gives you a temporary break in having to pay your mortgage. Once approved for a forbearance, you are allowed to stop payments for the approved months without the lender taking foreclosure action against you.
  • Short Sale: A short sale allows you to sell an underwater property for less than what is owed on the mortgage. Your mortgage lender approves the sale and then typically waives the deficiency balance (the remaining amount owed) so you can sell your home and move on without owing the remaining balance.
  • Deed in Lieu of Foreclosure: A deed in lieu of foreclosure is an agreement between yourself and your mortgage lender where you sign a document giving the house back to the bank in exchange for the bank agreeing not to foreclose on you.

What documents are required in the Freedom Mortgage loan modification application?

To apply for a mortgage modification, you will be required to submit a “complete loss mitigation package.” This is basically the lender’s application form plus all of the required financial documents that they require.

The documents include:

Here’s what you need to know about each of the loan modification documents

Options for transitioning off of a forbearance plan

If you went on a COVID-19 Forbearance Plan with Freedom, you may have additional options to transition back to normal payments:

  • If you have a qualifying investor backing your mortgage (FHA, VA, USDA, Fannie Mae, Freddie Mac) and;
  • You took a COVID-19 forbearance plan as a result of financial hardship caused by the pandemic and;
  • You were current on your mortgage prior to March 1, 2020

You should be able to transition off of your forbearance plan using:

  • A payment deferral – where Freedom puts the missed payments on to the end of your loan to help you resume regular monthly payments
  • A partial claim – where Freedom creates a subordinate lien containing the lump sum of payments you missed which becomes due at the maturity date of your loan

Freedom Mortgage Loan Modification Problems and Complaints

Getting in touch with someone at Freedom is really difficult.

Freedom has not adjusted to the increased call volume associated with the COVID Forbearance plans.

If you have the ability to retain an attorney’s help in dealing with them, you should – if only so you don’t have to stress about trying to get in touch with them.

If you’re going to go at it alone, make sure you understand what you’re up against and do what you can to avoid their most common communication problems.

Problem: You can expect to be on hold for an hour or more just to get an update on your file

Solution: Try calling them before 7:30am. Don’t call on a Monday or a Thursday.

Problem: It is not easy to get transferred to a supervisor

Freedom Mortgage’s customer service representatives and trained to block you from being able to speak with a supervisor. The supervisors at Freedom actually do have the authority and ability to help move your file forward but they are very hard to get a hold of.

If you ask for a supervisor, you can expect to be told that you will be transferred to a Voicemail and that a supervisor will call you back.

Solution: Refuse to be transferred to their Voicemail. Make clear that you will wait on hold until a supervisor becomes available. If the customer service representative refuses to allow you to wait on hold, get the name of the supervisor you were set to speak to. Then, send an email here: lossmitigation@freedommortgage.com with that supervisor’s name in the subject line. In the body of the email, simply confirm that you asked to speak with them (list the date and time) and were told they weren’t available. You’re doing this for documentation purposes and to indicate to Freedom that you’re serious about getting help. The next time you call in, if you ask for a supervisor, you can point them to this email to prove it is your second time asking for a supervisor.

Problem: Freedom’s supervisors CAN email you and put things in writing but they will try to do everything they can to AVOID doing that

Solution: The supervisors at Freedom can email you but (like all lenders), they don’t want to email you if they don’t have to. If they give you verbal information, tell them that you need it in writing to be able to refer back to it. If they refuse, just continue to ask them nicely to confirm it in an email for you. Have your email ready to provide to them.

Freedom has a really long lag time in between when documents are generated and when they are mailed

Freedom has a hard time mailing documents to borrowers as soon as the documents are ready. Sometimes, you will receive a document from Freedom that is dated 2-3 weeks prior.

This can be very stressful because some documents have deadlines for action and sometimes, Freedom will mail your documents after the deadline in the document has passed.

If you receive a document that has a deadline in it that has already passed, call Freedom immediately and instruct the customer service representative to make a note attached to your file.

Tell the representative to have your note state the date you received the document and that you’re working to execute the document as soon as possible. Don’t just let the customer service representative say “okay” after you ask them to make a note.

Make them read the note they’re writing back to you to ensure all the information is included in the note.

The note should read something like this:

“Borrower received documents that were dated 12/10 on 12/29. The lag time between the date and the mail time was caused by Freedom. Borrower is working on executing them as soon as possible.”

If you’re in the middle of your review, prevent document lag time issues by calling regularly for updates

To prevent issues with their mailing system, call Freedom every 48 hours to get an update on your file. If you’re at the phase in your loss mitigation review where you believe documents are coming, ask this question every time you call:

“Have the documents been generated on my file yet?”

If the answer is yes, ask them if the documents have been mailed. If they tell you that the documents have been generated but have NOT been mailed, you can make a request to have the documents emailed to you.

The customer service representative will put in a request to have the documents emailed to you within 48 hours. In 48 hours, you should receive your emailed copy. If 48 hours have passed, call them back and stay on the line until you get to a supervisor who can email you a copy.

Having an active online portal can also prevent Freedom’s document lag time problem. Documents often get attached in your online portal before they get mailed so make sure you’re checking your online portal regularly.

Freedom Mortgage Loan Modification Success Story

I took on a client who was in the middle of a loan modification review with Selene Financing. Halfway through the review process, she received a goodbye letter telling her that Freedom Mortgage had purchased her loan.

When her “board date” (the date Freedom was supposed to take over her loan) came and went and Freedom was still not showing any information about her loan, she became my client. Her prior servicer (Selene) had issued a Notice of Default against my client making her eligible for foreclosure mediation which stopped all foreclosure activity.

Through multiple escalations with management during the mediation, we discovered that Freedom had one of the client’s social security numbers incorrect in their system that was causing problems when the client would call in for an update. They had no record of the client’s loan because her information had transferred incorrectly from Selene.

We were able to fix the issue so the client could have access to her account and expedite her loan modification review to get her back on track with her mortgage.

Mortgage Relief Options for Washington Homeowners

Mortgage issues are complex. Banks and mortgage servicers can be very uncooperative. If you think you might need some help, you have some good options.

Here are three articles to help you understand the help that is available to you.

What Can a Mortgage Attorney Do For You
What to Look For In a Loan Modification Attorney
What Can a Foreclosure Attorney Do For You

If you are a Washington State homeowner, the next step would be to schedule a free, mortgage relief consultation with me. Please give me a call today at (425) 654-1674 to discuss your situation.

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