Flagstar Bank review: loan modification 9

Lost my job in May, 2009. Started my "Loan Modification with Flagstar bank in June, 2009, just got my rejection letter: I guess the Obama program wants us to stop paying our mortgage and then we may be available for these programs. My savings is almost gone and I wilkl have to start missing my home mortgage payments. Never missed one in 21 years. Here is Flagstar's rejection letter to prove this:

Flagstar Rejection Letter and Information from the Attorney General’s Office

March 17, 2010
Dear customer, Flagstar Bank has reviewed the information you provided to be considered for the U.S. Department of the Treasury’s Home Affordable Modification Program. Unfortunately, we are unable to proceed with modifying your mortgage under this program because you DO NOT meet one or more of the basic program mortgage and property eligibility requirements established by the Department of the Treasury as noted below:

“DEFAULT NOT IMMINENT
“We are unable to offer you a Home Affordable Modification because you are CURRENT on your mortgage loan and after reviewing the financial information you provided us, we have determined that YOU ARE NOT AT RISK OF DEFAULT because: you have not documented a financial hardship that has; reduced your income or increased your expenses, thereby impacting your ability to pay your mortgage as agreed.

Dean; I have documented a $90, 000 loss in pay because of my job loss. An increase in my monthly expenses of $1, 387 because of the job loss; Things the company paid for that I have to pick up now:
1. Car payment $404
2. Cell phone $126
3. Internet $39
4. Health Insurance $554
5. Life insurance $264

it's not Obama is the GIANT financial institutions NOT carrying out the program in good faith

I got turned down twice for insufficient income! Isn't that why we're applying?

I agree with shirleysure. There ought to be someone overseeing these financial institutions to make sure they are doing it "right". I've been working with FlagStar for the last several months faxing in document after document per their request. I followed every step to the T. Each time I'd call for a "status", there was always a "missing document" and to fax it over right away. I was told NOT to call back the same day but wait two or three days before calling to get an update. This crap went on for months. Just TODAY I found out that my 3 kids and myself are in the process of being evicted and was told that there's nothing that can be done about it. It went from faxing in a "missing document" to "Your case has been transferred to Foreclosure...did you not get my email?" THE BALL WAS DROPPED! I was totally in the dark as to what the hell was going on in the background while I was trying to get qualified for a program. It's sad to say that the nicest person that I've talked to at FlagStar was a gentleman in the Evictions Department named Michael.

Hi,

I stumbled upon your website after doing a seach for lawsuits against flagstar bank. I figured there would be people that would in the least read my story, if anything to add to the countless stories of people screwed over by the mortgage companies.

In July of 2009, I was let go from my job. At the time my wife and I were current on our bills. Knowing that losing 60% of our income was going to have a severely adverse effect on our expenses I contacted my mortgage company to explain the situation. I asked them about my options (at the time we were current on our mortgage). Flagstar bank told me that being that I was current on my mortgage, they couldn't do anything to help me--I had to be three months behind before they could start any processes. I called roughly every week asking about different plans--my goal was a forebearance, which they claim on their website was an option. I knew if they could hold off the hounds so to speak for a few months, we would be back on our feet. Well, we fell behind--there was no way we could pay all of our bills on just my wife's salary. So the mortgage went three months past due. Upon this happening, flagstar officially allowed us to apply for their loan modification program. We sent in all of the paper work they request and it appeared that maybe there would be hope. The weekly calls to them that I made all resulted in the same answer--'it takes X number of months in the program to go for loan modification' Loan modification? I just wanted a forebearance. Well, my only option they gave me was the loan modification.

My wife's job was about to be outsourced so we were left with the posibility of no income. We made the mistake of moving out of our house (to another state where family was) in order to survive. Funny to say mistake, huh? Live in the house and starve or move in with family to survive.

In December of 2009 we moved in with family. Flagstar was fully aware it was temporary in our eyes. Yes, we changed our licenses and car registrations over to the new state--we had to--it's the law. We kept the utilities going in our house. Flagstar was fully aware of this and told us just to keep calling them and sending in whatever info they needed.

All along my weekly calls to flagstar seemed like a beacon of hope "Don't worry, you're in default but not in foreclosure yet" I was told on a regular basis.

In May of 2010, we started getting harrassing calls from flagstar (we were getting calls all along but they were easily diffused). Then one night they called and my 2 year old daughter answered the phone, garbled something at them and hung up. Two weeks later we were served papers. My wife called and asked why when they were 'working with us' all this time they would cut the cord. The rep stated that they had called and we mumbled something and hung up and therefore they no longer had to help us.

Many more phone calls were placed with flagstar and once again it seemed like they would work with us. We sent in paystub after paystub, bank statements, hardship letters hell, if they wanted a blood sample I would've bled on a piece of paper and faxed it to them. And every week they told me that we weren't at the point of no return. Every week they told me our loan modification would be reviewed and we'd get an answer.

Now we got a letter in the mail stating that a hearing was going to be held. That date came and went (we were told our attendance was not necessary). A sale date was to be set, but nobody had any information on when--not their loan modification department, not their lawyer, no one. We never got anything in the mail.

I continued my calls to them. Asking for any information. On september 8th, 2010, I sopoke with a rep and told her I needed the sale date postponed--that was what their reps kept telling me to do. she looked at my files and said 'wait, your sale date is Sept 3rd." Apparently they did postpone the sale date. But never told me.

So on September 24th I call them again (my sale date was moved to Oct 4th--and no, no letter was sent that time either) asking about the status. Mind you, i was now calling them every 3-4 days. I was told for the millionth time that my request was in final review and hopefully they'd have an answer this week. Well, today I called them again and I was told that my loan modification was denied on September 24th. I asked why. The rep told me that because we did not live there and it was an fha loan, it couldn't be approved. I told the rep that we still planned on moving back into the house. Well, without proof of that they would not postpone my sale date again.

So now here i am writing to you telling you my story. I know the mistakes I made here--I know I should have gotten a lawyer months ago. I know I should not have listened to Flagstar and done anything else to avoid this. I trusted what their reps said. Now in these next few days I have to decide: Do we file a Chapter 13 or do we just let the sale happen.

Thanks for reading this. Maybe my mistakes will serve some good to someone before they make the same mistakes.

Paul Kelley

i have been in flagstar modification program for 6 months getting into the program was a nightmare. Now 6 months into program and everything signed and notorized we are now getting calls 5 times a day telling us we are behind, and the payment comes out of my checking account on the 1st of each month. I have sent them all bank statements and they will not correct their mistakes. It is killing me that after 6 months of paying every bill on time and proving that i sent the money they will not stop calling me telling me i am behind a month.Can anyone help thanks Curtis in UTAH

Curtis I have went through some what of the same thing with Flagstar on there modification. They sent back our payments stating that we had to reapply for the modification upon reapplying for the modification home got foreclosed on. This is a brief description of what happen. I was forced into foreclosure and currently in the process of taking them to court. Flagstar stated that they had everything they needed from me and that the sale date was canceled but never did.

I feel that they need to pay for what their doing to people and the lies have to stop.

Thanks,
EJA

Take it from me you need to contact the Federal Government (HUD) via written communication, THAT is the only way this bank will perform in axcordance to the law. After 2 .5 years the feds finally took contro of my situation and forced the bank to modify my loan to a 2.5% interest rate. Good Luck!

I have just finished the initial paperwork to get my documentation into underwriting for assistance with our loan. I am surprised that our SPC ( single point of contact ) can not even tell me at this point what programs we might pre-qualify for based on the information they have right now. I got a job at a call center for a global bank that is providing homeowners with assistance in getting into a program that they can pre-qualify for based on the information given on the phone. I am already getting worried that I am not being given any information about my status but trust me I am speaking with the company that I am working for and if there is any discrepancy in what they are doing I am going to file a class action law suit !