How to Stop Foreclosure on a Freedom Mortgage

Stopping a Freedom Mortgage foreclosure requires understanding both the federal dual tracking protections that apply at every servicer and the additional investor-specific protections unique to Freedom Mortgage's heavily FHA and VA-concentrated portfolio. For FHA borrowers, the 24 C.F.R. § 203.605 mandatory federal loss mitigation waterfall — including the 24 C.F.R. § 203.371 partial claim evaluation requirement and the 24 C.F.R. § 203.604 face-to-face meeting obligation — creates pre-foreclosure compliance obligations that Freedom Mortgage must fulfill before any foreclosure action is valid. For VA borrowers, 38 C.F.R. § 36.4350 et seq. VA servicer obligations and VA regional loan center oversight create institutional intervention capability. For Fannie Mae and Freddie Mac conventional borrowers, the Flex Modification programs under Fannie Mae Servicing Guide D2-3.2 and Freddie Mac Servicing Guide Chapter 9203 must be evaluated under the federal Regulation X framework. These tools are in addition to standard dual tracking, not substitutes for it, and a professional deploys all of them simultaneously.

Freedom Mortgage Corporation is one of the largest non-bank mortgage originators and servicers in the United States, headquartered in Mount Laurel, New Jersey, with a portfolio heavily concentrated in FHA and VA government-backed loans and a significant role as a Ginnie Mae servicer. Freedom Mortgage acquired RoundPoint Mortgage Servicing in 2023, absorbing additional servicing portfolio into the Freedom operation. Borrowers whose loans transferred from RoundPoint to Freedom in or after 2023 should verify that prior application history and forbearance agreements transferred accurately under the RESPA § 6 / 12 C.F.R. § 1024.33 servicer-transfer notice rules — a phone call to Freedom that produces only a verbal assurance is not adequate documentation of protected status.

The 12 C.F.R. § 1024.41 Framework at Freedom Mortgage

Federal Regulation X at 12 C.F.R. § 1024.41 requires Freedom Mortgage to stop foreclosure advancement while a complete loss mitigation application is under review. The 12 C.F.R. § 1024.41(g) dual tracking prohibition specifically bars a foreclosure sale while a 12 C.F.R. § 1024.41(b)(2)(i)(B) complete application submitted more than 37 days before the sale date is pending. The 12 C.F.R. § 1024.41(c) 30-day evaluation window governs the review timing, and 12 C.F.R. § 1024.41(d) requires Freedom Mortgage to provide specific written reasons for any denial. These are legally enforceable federal requirements, not internal Freedom Mortgage policies. But they require the application to be complete by Freedom Mortgage's definition for the specific loan type. A professionally prepared Freedom Mortgage application — with every required document current and correctly formatted, with the investor confirmed through a 12 C.F.R. § 1024.36 request for information, and for FHA loans with a specific written demand for 24 C.F.R. § 203.371 partial claim evaluation — triggers these protections immediately.

For FHA borrowers, the professionally prepared application also creates a federal compliance record from the moment of submission — documenting that 24 C.F.R. § 203.371 partial claim evaluation was specifically requested under the § 203.605 waterfall. This record is the foundation for the federal pre-foreclosure compliance challenge if Freedom Mortgage continues advancing foreclosure without completing the required evaluation. Freedom Mortgage's early intervention obligations under 12 C.F.R. § 1024.39 (live contact by day 36 of delinquency, written loss mitigation notice by day 45) precede this protection but do not by themselves trigger it — only a complete application does.

Stopping Freedom Mortgage Foreclosure Before Filing Under 12 C.F.R. § 1024.41(f)

The strongest intervention is before Freedom Mortgage refers the account to its foreclosure attorneys at the 12 C.F.R. § 1024.41(f) 120-day pre-foreclosure threshold. A complete application submitted before this threshold prevents the first foreclosure filing entirely. For FHA borrowers, the application includes a written 24 C.F.R. § 203.371 partial claim evaluation demand — creating a federal compliance record before any foreclosure filing is possible. For VA borrowers, the application includes 38 C.F.R. § 36.4350 et seq. VA regional loan center notification. The foreclosure track never starts. The modification and partial claim evaluation processes run in Freedom Mortgage's loss mitigation channel with maximum time and no foreclosure pressure. Confirming the investor on the loan through a 12 C.F.R. § 1024.36 written request — to which Freedom Mortgage must respond within statutory timelines — is the prerequisite to knowing whether the FHA, VA, Fannie Mae, Freddie Mac, or private-label framework governs the application strategy.

FHA Pre-Foreclosure Compliance Challenge Under 24 C.F.R. § 203.605

For Freedom Mortgage FHA borrowers in active foreclosure, the 24 C.F.R. § 203.605 federal pre-foreclosure compliance challenge provides a standalone intervention separate from standard dual tracking. The § 203.605 waterfall requires Freedom Mortgage to evaluate FHA borrowers through a mandatory sequence — informal forbearance, formal forbearance, special forbearance, repayment plan, loan modification, and the 24 C.F.R. § 203.371 FHA partial claim — preceded by the 24 C.F.R. § 203.604 face-to-face meeting requirement (or its functional equivalent for borrowers more than 50 miles from the servicer's office). A Freedom Mortgage that initiated foreclosure on an FHA loan without completing this waterfall has potentially violated federal pre-foreclosure requirements.

In practice, when a professional raises a documented § 203.605 waterfall compliance challenge — specifically identifying that 24 C.F.R. § 203.371 partial claim evaluation or 24 C.F.R. § 203.604 face-to-face meeting was not completed before foreclosure initiation — Freedom Mortgage typically responds by postponing the foreclosure and completing the required evaluation. Freedom Mortgage has a significant institutional interest in maintaining FHA servicing approval status, and a documented compliance failure raised by a professional is a credible threat to that status that produces a real operational response — not a courtesy.

VA Regional Loan Center Intervention Under 38 C.F.R. § 36.4350 et seq.

For Freedom Mortgage VA borrowers in active foreclosure, the 38 C.F.R. § 36.4350 et seq. VA servicer obligations give the VA regional loan center authority to contact Freedom Mortgage directly, review its servicing records, and require suspension of foreclosure pending completion of VA-required loss mitigation. Formal notification to the regional loan center — specifically requesting VA's review of Freedom Mortgage's loss mitigation compliance file for this loan — creates institutional pressure that changes how Freedom Mortgage responds. Professional invocation of this mechanism — knowing how to file the request correctly and follow up on the VA's response — produces outcomes that unmanaged veteran attempts cannot consistently achieve. The post-VASP regulatory environment (the May 1, 2025 termination of the Veterans Affairs Servicing Purchase program, followed by the July 30, 2025 H.R. 1815 VA partial claim program signed into law but not yet fully operational as of 2026) makes the regional loan center channel especially important for VA borrowers in 2026.

Conventional Borrowers: Fannie Mae Servicing Guide D2-3.2 and Freddie Mac Servicing Guide Chapter 9203

For Freedom Mortgage borrowers whose loans are owned by Fannie Mae, the Flex Modification under Fannie Mae Servicing Guide D2-3.2 must be evaluated before foreclosure can advance. For Freddie Mac borrowers, the parallel Flex Modification under Freddie Mac Servicing Guide Chapter 9203 applies. Both target approximately a 20 percent monthly payment reduction through a combination of interest rate adjustment, term extension up to 480 months, and principal forbearance where applicable. The calculation is formulaic — and the formula's inputs (income, property value, the benchmark interest rate) are auditable. A denial based on an incorrectly calculated D2-3.2 or Chapter 9203 Flex Modification is challengeable through the 12 C.F.R. § 1024.41(h) 14-day appeal window. Professional review of the calculation identifies the specific input that produced the wrong result and supports an appeal that has documented grounds for reversal — not a generic objection.

Trial Modification Coordination and Sale Postponement

If Freedom Mortgage approves a modification during active foreclosure, professional management ensures the foreclosure is formally suspended during the 3-month trial period, trial payments are made on time and confirmed received in writing, and permanent modification documents are issued promptly at the trial's conclusion without the foreclosure reactivating. Sale postponement requests — backed by documented 12 C.F.R. § 1024.41(b)(2)(i)(B) application status, 24 C.F.R. § 203.605 federal compliance demands for FHA loans, or 38 C.F.R. § 36.4350 et seq. VA oversight requests for VA loans, and the specific regulatory basis for postponement — succeed in cases where unmanaged borrower phone calls do not. Freedom Mortgage responds to formally documented requests that invoke specific regulatory obligations differently than it responds to informal requests for more time. For borrowers whose loans transferred from RoundPoint to Freedom Mortgage post-2023, the application also serves as the moment to verify that prior application history transferred accurately under 12 C.F.R. § 1024.33 servicer-transfer notice rules — a verification that is uniquely important for transferred borrowers and is often the gap that creates the foreclosure exposure in the first place.