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.