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Flagstar Bank, Washington Complaints & Reviews - Loss Mitigation/ Foreclosure

Flagstar Bank Contacts & Informations

Flagstar Bank

Posted: 2012-05-09 by    ddjohn3

Loss Mitigation/ Foreclosure

Complaint Rating:  100 % with 5 votes
Contact information:
Flagstar Bank
Washington
United States
I feel that I have been fraudulently denied the ability to short sale my home or receive any assistance through their Loss Mitigation program.

In March of 2011, based on a host of medical issues and the very strong advice of my Doctor, I left my job. I was not able to draw unemployment so I had no income. At that time I contacted the Loss Mitigation department of Flagstar to pursue a Deed in Lieu of Foreclosure. Between March of 2011 and July of 2011 I had a total of 26 conversations with the Loss Mitigation department. The process requires providing a list of documentation. During this time period I faxed a total of 215 documents (the original number of required documents was 56). The reason this number is so high is because they repeatedly told me that they had either not received the documents, or that some portion of the documents were not legible. I was actually told that if a single word is not legible they will “throw out the document”. During this time they “closed” my file twice because they stated I had not “provided the required paperwork in a timely fashion”. If they continuously “lose” or “throw out” paperwork then it becomes impossible to provide it in a timely manner-even if I am faxing it to them repeatedly. Also-each time I contacted them I was placed on hold an average of 45 minutes…the longest being 69 minutes. In July I finally gave up out of frustration and decided to continue to try and sell the home (it has been on the market since Oct. 2009-the last year as a short sale).

In February of 2012 I received (my first) offer on the home. It would have to be a short sale, but wanted to pursue this option with Flagstar. I began the process with them again and gathered the required documents and faxed them in early February. It is now May 8th and it was only as of last week that they finally stated I had provided what they needed to move forward to make a determination if I was eligible for a short sale. My Realtor, has also had this same experience with them (placing him on hold for very long periods of time, claiming he has not faxed them required paperwork, etc).By the way-the house is due to go up for auction on May 11th. I can’t help but feel they are purposely delaying so they can move forward with the auction. In the last 12 weeks I faxed paperwork almost daily with the same responses….we have lost some of the paperwork, some of it was not legible, some of it they claimed they simply did not receive (I have copies of fax confirmations). Again, each phone call involved being placed on hold for 30-45 minutes. I had also provided my new mailing address and phone number a total of 5 times (they continued to send correspondence to my old address). Today I was finally told that the Loss Mitigation department cannot change my mailing address, only customer service can do that. I asked the person I was speaking with today why they did not tell me that weeks ago and she responded that they “had recently changed their system and perhaps the people I spoke with were not aware they could not make those changes”.

Likewise, when I called today to check the status of where things were, I was told that they had been “trying to contact me with no luck” to do a financial interview. This is because they had been trying to reach me on my old number ( again-I had provided my new number a total of 5 times). During the Financial Interview, when reviewing my yearly gross income, she stated, that according to their calculations, I made $28, 350 per year. I told her this was incorrect. I make $24, 960 per year. I had provided them with my offer letter from my employer that clearly states my hourly wage and hours per week that I work. She stated they use my paystubs to figure my yearly income. Up to this point I had provided 4 paystubs. Each varies due to the cut off dates of the pay periods (some will have 80 hours, some will have 88). The particular paystub they chose to use had 96 hours on it due to the fact that I had 8 extra hours on it because I had neglected to record a day on the previous pay cycle. My point is: out of 4 paystubs I provided they chose to use the one with the highest amount to figure my income. I clearly make $24, 960 per year. This is indisputable. Yet they are insisting I make $28, 340 per year. When I tried to explain my concern….basing a financial decision based on an incorrect income amount…she became very hostile. Told me that it was not “uncommon for people to be wrong about the amount of money they make per year” and that there was nothing she could do about it and was not going to discuss it with me any further.

Update as of this morning 5/9: I called them 5 times and was either disconnected or sent to the wrong department (and then disconnected again). I finally was able to speak with someone and was told I did not qualify for a short sale because I was no longer living in the home and that they would not delay the auction to discuss this further. She was rude and basically hung up on me when I tried to ask questions. In the (over year)I have been talking with the loss mitigation department not once did they EVER say anything to me about not qualifying to short sell due to not living in the house. They have been aware I have not lived there since last May (one, because I had another address and two, because I have told them repeatedly I do not live there, and they have even asked me several times).

I feel that Flagstar has adopted a policy of doing everything in their power to dissuade people from pursuing other options than foreclosure (they stop due to frustration or confusion). I feel they intentionally do things that impede the ability to move forward with the process, i.e. losing paperwork, throwing it out, claiming they never received it, closing the file and making you start over from scratch because they did not receive the paperwork in a timely way. Oh, and placing you on hold for extended periods of time (I cannot tell you how many minutes they have eaten up of my cell minutes). Their decision to erroneously and blatantly use an incorrect yearly gross income amount is nothing short of criminal and fraudulent. And again, denying me based on the fact I do not live in the home was never once discussed with me in the last year, in spite of the fact they clearly knew I was not living in the home.

Again, I feel that since the beginning Flagstar’s prime directive has been to foreclose on the home and I feel they have fraudulently denied me the opportunity to short sale the home.
Comments United States Mortgage Companies
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 23rd of May, 2012 by   Don't use Flagstar Bank 0 Votes
I too have gone thru hell with Flagstar Bank. They should not be in business. Contact Fannie Mae or Freddie Mac with your complaint. They did get invovled with my case and call Flagstar. Still took 1 year to modify my loan and still problems with my escrow account and Flagstar not updating my credit correctly. Fannie Mae will investigate and try to help. 1-800-732-6643 . Flagstar denied me when I did actually qualify. Good Luck
 13th of Jul, 2012 by   Grabma 2 0 Votes
I had the same experience with Flagstar. They continuously lost paperwork & I was put on hold for over an hour always. For 20 months we tried to do a short sale & in the end they bought my house in Bergen County, NJ for $100.00 at the foreclosure auction instead of accepting the $309, 000 cash offer that they determined was the fair market value. Despite having a lawyer & jumping thru hoops Flagstar foreclosed on me. I believe their intention was to foreclose all along & never intended to do a short sale. They also said Fannie Mae (which was our loan) were the ones who would not accept the cash offer in the end.
 22nd of Sep, 2012 by   Cristalbot 0 Votes
We are in the same situation with flagstar, they determined we do not qualify for a loan modification which was not our intent. Our Goal was to short sale. We were just denied last week and was told we would have to reopen he file. As of now we have a contract on the house, I doubt they even reviewed it. I feel they would rather the house foreclose then consider a short sell. I don't know what to do at his point. We live n PA and I'm in fear of a deficient judgement if the house is foreclosed upon. Any advice additional would be so helpful. We are scared at this point.
 22nd of Sep, 2012 by   Grabma 2 0 Votes
You are right - Flagstar would rather foreclose then do a short sale. Ii is ironic that after Flagstar denied our short sale offer of $309, 000 cash, as is, they have now put the house as a REO sale for $300, 000. Funny how they could have taken the cash offer of $309, 000 that they deemed as the current market value 4 months ago & now they are asking for less (& that is after they had to empty out the house, etc.). It can only mean that the banks are being bailed out from the government & then reselling to make a profit. Not very fair to the consumer. Meanwhile, my advise would be for you to contact the CFPB (Consumer Financial Protection Bureau). They might be able to help you if you contact them ASAP. I did not find out about the organization in time for me but I did file a formal complaint with them. You can go on their web site & follow the instructions. Good luck - I hope they can help you. Let me know.
 17th of Mar, 2013 by   Dtryke 0 Votes
Same experience with Flagstar...
 5th of Aug, 2013 by   cris4 0 Votes
Thank you Grabma 2 for your comments, here we are nearly a year later and today the property goes into in the sheriff's sale. We have gone through 3 offers all denied by Flagstar, The the same song and dance-Our file had been closed at least 5 times, after numerous financial interviews, and re-submitting documents, our realtor working hard to prove we were getting the best offer considering the value of the home, in the last 30 days they wouldn't even return phone calls or e-mails. I was able to get HUD involved who basically said it's up to Flagstar. It took nearly 3 weeks for a rep from HUD to even call me back. It's been a nightmare. I think I will file a complaint with CFPB, even is it's after the fact. We left the home months ago so I can't imagine why they still wouldn't approve a short sale or even a deed in leu. It's shady business practices. I don't understand. We still are hoping a deficiency judgement is not granted ( as PA is a recourse state) and we can somehow recover financially from this. In all the message boards I see the same comments regarding Flagstar, it's startling to read and nothing can be done...

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