Freedom Mortgage seems to be a scam : homeowners

Freedom Mortgage seems to be a scam : homeowners

A while back, I started getting letters in the mail, and nonstop phone calls from Freedom Mortgage. The letters were vaguely worded, saying “we acquired your loan. Go to this web site to refinance at a lower rate!” I’m thinking “acquired seems vague, that might not mean they actually bought my loan.” So, I ignored them. I’m not doing anything until I hear from my current loan company. I blocked their phone number, too.

Finally, I got a letter from my mortgage company, saying they sold my loan to Freedom Mortgage. So I unblocked their number, in case they need to reach me for anything important. I even called to get my account number, which they don’t even have for me yet.

Well, today I get a call from them. The guy is telling me he has a special where he can refinance me at a lower rate, and my monthly payment will go down by about $60. That actually sounds pretty good… as in, too good to be true. I told him to email me the details of everything and I’d consider it. One stipulation: The refinance would add some fees to the amount financed, and the 30 year financing would start over. Hung up, and immediately did some research. I figured out how many months are left in my mortgage, and multiplied it by my monthly payment. I’ll call this Value A. I took his new monthly payment that he was promising me, and multiplied it by 360. I’ll call this Value B.

Long story short: Value B is about $18,000 higher than Value A.

This is a scam. The interesting part, he said with the new refinance, I could continue paying what I’m paying now, and I would actually pay the house off a year sooner. That actually seems like a somewhat decent deal, but considering how scammy option 1 is, there’s likely some fine print in option 2 that makes it equally bad. They wouldn’t be doing this if they didn’t have something to gain from it.

Read about:   Split Mortgage | How Will A Split Home Loan Benefit Me?

A bit of googling, and I found this. That sounds a lot like the deal they’re “offering” me, but it puts things into even more perspective, because at the beginning of the refi loan, you lose a ton of equity that you’ve built up in the original loan.

I really can’t believe these people can get away with this. Has anybody else here dealt with this company? Or maybe there are some others that do the same thing. Any interesting stories?

Here’s what I believe they’re doing. People flip houses. You buy a house in bad shape, renovate it, and sell it at a profit. Freedom Mortgage is flipping mortgages. They buy up a bunch of mortgages, get people’s private information and start selling these “special offers” to their new batch of victims. A bunch of people get fooled into accepting, and some are able to catch on and refuse the offer. A couple of months later, they sell these loans off, then buy another batch of victims to prey on. Rinse and repeat. So I have a feeling they’ll end up selling my loan off again in the near future, especially after I refuse their offer. Either way, they refinance a loan, add $18,000 to the principal, then sell it to another mortgage company, and they just made $18,000. There’s probably some haggling involved, so maybe they sell it at a “loss” and only make $12,000. But either way, it’s quick money.

I’m right, aren’t I?

18 thoughts on “Freedom Mortgage seems to be a scam : homeowners

  1. Dahlia Sroufe says:

    Hello! Someone in my Myspace group shared this site with us so I came to check it out. I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my followers! Outstanding blog and superb style and design.

  2. Hairstyles says:

    I would like to add if you do not already have got an insurance policy or perhaps you do not participate in any group insurance, chances are you’ll well reap the benefits of seeking the assistance of a health insurance professional. Self-employed or people having medical conditions generally seek the help of a health insurance broker. Thanks for your post.

  3. says:

    Best view i have ever seen !

  4. Landlord insurance says:

    Howdy! I could have sworn I’ve been to tis blopg before but after
    browsing through some of the post I realized it’s new to me.
    Nonetheless, I’m definitely delighted I found it and I’ll be bookmarking
    andd checking back frequently!

  5. Pingback:
  6. Crave Freebies says:

    Hello! This is kind of off topic but I need some advice from an established blog. Is it tough to set up your own blog? I’m not very techincal but I can figure things out pretty quick. I’m thinking about making my own but I’m not sure where to start. Do you have any points or suggestions? Many thanks

  7. Meridith Kiah says:

    Wow! This can be one particular of the most useful blogs We’ve ever arrive across on this subject. Basically Wonderful. I am also an expert in this topic so I can understand your hard work.

  8. Fashion Beauty says:

    I don抰 even know how I ended up here, but I thought this post was good. I do not know who you are but certainly you’re going to a famous blogger if you are not already 😉 Cheers!

  9. We are a bunch of volunteers and starting a brand new scheme in our community. Your site provided us with useful info to work on. You’ve done an impressive process and our entire community will be thankful to you.

  10. Selina Gobbi says:

    I think other web-site proprietors should take this web site as an model, very clean and excellent user friendly style and design, as well as the content. You’re an expert in this topic!

  11. Gwyneth Burd says:

    This web site can be a stroll-by way of for the entire data you wished about this and didn’t know who to ask. Glimpse right here, and also you’ll definitely uncover it.

  12. Virgilio Uptmor says:

    Have you ever considered about adding a little bit more than just your articles? I mean, what you say is fundamental and everything. However think about if you added some great pictures or videos to give your posts more, “pop”! Your content is excellent but with images and video clips, this site could certainly be one of the most beneficial in its niche. Wonderful blog!

  13. Alexia Gaspari says:

    We absolutely love your blog and find a lot of your post’s to be just what I’m looking for. Does one offer guest writers to write content for you personally? I wouldn’t mind publishing a post or elaborating on many of the subjects you write about here. Again, awesome weblog!

  14. Apolonia Sprain says:

    My brother recommended I might like this blog. He was totally right. This post truly made my day. You cann’t imagine just how much time I had spent for this info! Thanks!

  15. Fashion Trends says:

    A further issue is that video gaming became one of the all-time biggest forms of excitement for people of nearly every age. Kids enjoy video games, and adults do, too. The particular XBox 360 is probably the favorite gaming systems for folks who love to have a huge variety of video games available to them, along with who like to experiment with live with some others all over the world. Thank you for sharing your opinions.

Leave a Reply

Your email address will not be published.