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Freedom Mortgage Foreclosure Help: Insider's Guide

Freedom Mortgage is one of the largest FHA and VA servicers in the country. The waterfall is well-defined — but the documentation requirements catch most homeowners off guard.

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Freedom Mortgage Corporation

Servicer Type
Large nonbank servicer — heavy FHA, VA, and USDA portfolio
Headquarters
Mt. Laurel, New Jersey
Loss Mit Phone
855-690-5900 — ask for hardship assistance team
Specialty
Government-backed loans (FHA/VA) where partial claim and VASP options apply

How Freedom Mortgage's loss mitigation waterfall works

The "waterfall" is the order in which Freedom Mortgage reviews options when a borrower asks for help. Knowing the order — and what each option actually delivers — tells you what to ask for and what to push back on.

1

Repayment Plan

Add a portion of arrears onto each monthly payment over 3–6 months. Best when hardship has resolved.

2

Forbearance

Short pause typically 3–6 months. Freedom requires income documentation before approval.

3

Loan Modification (Flex Mod or FHA-HAMP)

Term extension up to 480 months, principal forbearance, rate adjustment. FHA loans use partial claim + modification combo.

4

VA Servicing Purchase Program (VASP)

Veterans only. VA buys the loan from the servicer at a 2.5% modified rate. Powerful tool — most borrowers don't know it exists.

5

Compromise Sale (VA short sale)

VA covers the deficiency. No tax impact. Faster than a typical short sale.

6

Deed in Lieu

Voluntary surrender. May include relocation assistance ($3,000+).

Stuck inside the waterfall? We've worked it from the inside.

Our team has run loss mitigation files at major servicers for decades. Free, no-obligation review of where your case stands and what to ask for next.

Get a Free Case Review →
Or call (682) 610-0007

Freedom Mortgage-specific pitfalls

Every servicer has its own quirks. The patterns below are what trips up homeowners who try to navigate Freedom Mortgage alone.

Missing the VASP window

VASP eligibility is time-sensitive and not advertised by Freedom. Many veterans qualify but never apply because the option isn't presented unless you ask by name.

Incomplete hardship packet

Freedom rejects packets missing any of: 2 most recent paystubs, 2 months bank statements, signed 4506-T, hardship affidavit. Partial submissions sit unread.

Document portal vs. fax

Use the online portal. Faxed documents at Freedom average a 14-day acknowledgment delay.

Servicing transfer mid-application

If your loan is sold during loss mit review, federal RESPA requires the new servicer to honor the application — but you must reassert it in writing within 60 days.

How to stop a Freedom Mortgage foreclosure sale

If a sale date has been scheduled, you have a narrow window to act. Here's the sequence we follow:

  1. Locate your Notice of Default or Notice of Trustee Sale. The foreclosure attorney named on it is the one who can postpone or rescind the sale — not Freedom Mortgage's customer service line.
  2. Submit a complete loss-mit application. Federal CFPB Reg X protections require Freedom Mortgage to halt the sale if a complete application is received more than 37 days before the scheduled date.
  3. Confirm the postponement in writing. Verbal holds from a customer-service rep are not binding on the foreclosure attorney. Get a Rescission of Notice of Default or written postponement notice before the sale date.
  4. Escalate to dual-tracking violations. If Freedom Mortgage continues the foreclosure while a complete application is pending, that is a CFPB violation and grounds to halt the sale through legal action.

What to do if Freedom Mortgage denies your modification

A first denial is not the end. Most successful modifications are approved on appeal or after a Notice of Error is filed under RESPA Section 6.

  1. Request the denial reason in writing. Federal law requires Freedom Mortgage to disclose the specific reason and identify the investor.
  2. Appeal within the deadline. Most servicers allow 14 days from the date of the denial letter. Past that, you may have to start over.
  3. File a Notice of Error if dual-tracking occurred. RESPA gives you 60 days; Freedom Mortgage has 30 days to respond. The clock on any pending sale must be paused while the NOE is investigated.
  4. Get expert review of the denial reason. Many denials cite "insufficient income" or "NPV negative" — both are calculations that can be challenged with the right documentation.

Denied by Freedom Mortgage? That's not the end.

Most modifications we close were originally denied. Our team knows how to read the denial reason and structure the appeal. No upfront fees, ever.

Get a Free Denial Review →
Or call (682) 610-0007

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