r/FHAmortgages

Hello,

I have a question about next steps. I'm finally in a place where I'm making money and can come out of forberance, but I can't make the lump sum payment. My new bank (thank goodness my loan got sold during this process) has been amazing, they helped me put in my application for loss mitigation and other opportunities. My question - they sent me a letter in the mail stating they would run my application to see if I qualify for fha loss mitigation or provide an offer for foreclosure prevention. I was unaware that there may be options outside of loss mitigation. Does anyone know what foreclosure prevention entails? Does that mean just paying a higher note each month until I'm caught up? I ask because my old bank (which was trash) told me I'd never qualify for loss mitigation because I refinanced a few weeks before I lost my job via layoff. The new bank told me that's not necessarily true. But if they come back amd say no, I'd like to see what my other opportunities are. I'm cool with paying more each month within reason because I can finally afford it.

I was recently reviewed by my mortgage servicer, Freedom Mortgage, for FHA loss mitigation. At the time of the review, I did not have the financial capacity to resume my mortgage payments, and I was denied all available loss mitigation options. Their determination essentially left me with foreclosure or a deed-in-lieu as my options.
Since that review, my financial circumstances have materially changed and I now have capacity to resume making my mortgage payments. I submitted an appeal of the loss-mitigation denial explaining the change in circumstances and asking to be reconsidered.
Freedom has now denied the appeal.
Here’s where it gets interesting: when I called to check on the appeal, the representative read me an internal note saying my appeal was considered “not valid” because I had not identified an error in their original review and had not provided documentation proving an error.
However, the official written appeal determination does not say that. It says:
“We completed our review of your appeal request. Based upon our review, our original decision remains the same…”
It doesn’t explain that my appeal was rejected as invalid or explain what, specifically, was wrong with my appeal.
Freedom’s original correspondence also referenced the possibility of a verifiable change in circumstances after the original review, which is essentially what I am now trying to have considered.
I’m now preparing a RESPA Notice of Error/Request for Information asking Freedom to explain how my appeal was handled, what criteria were applied, and how my changed circumstances were considered.
I’m also pursuing:
HUD/FHA — I’ve already opened an inquiry regarding the loss-mitigation/appeal process.
CFPB — considering a complaint regarding the servicing/loss-mitigation process.
State banking regulator/consumer protection channels — also looking into whether a complaint is appropriate.
The bankruptcy that was previously providing protection has also now been dismissed, so timing is obviously a major concern.
What I’m trying to understand:
Can a servicer deny a loss-mitigation appeal on the basis that I didn’t identify an error in the original review if the appeal instructions didn’t clearly require that?
Does my new capacity to repay/change in circumstances give me a basis for a new loss-mitigation review even though the appeal was denied?
What happens to the Georgia foreclosure timeline when a foreclosure sale was previously scheduled but canceled/stayed during bankruptcy? Do they simply set a new sale date, or do they have to restart portions of the foreclosure process?
Is there anything else I should be doing right now to preserve my ability to keep the house while I pursue the changed-circumstances/loss-mitigation route?
I’m not looking for someone to tell me that foreclosure is bad or that I should sell. 😅 I’m specifically looking for someone who understands FHA loss mitigation + Georgia foreclosure procedure and can tell me what I’m missing or where my understanding of the process is wrong.
Especially interested in the people who know the servicing side of this.

I paid my car off last year and I didn’t know that I needed two trade lines of credit to get the grant program, but I was wondering if student loans and me making on time payments for the last two years would be considered as a trade line of credit I do have a credit card so that is one but I do not have a second one but I asked chat gpt and it said yes but I didn’t know if anyone else had experience before I start sounding ridiculous when I speak to a lender