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Flagstar Bank / Fishy?Fraudulent Loan and NO ONE WILL HELP ME!

1 Troy, United States Review updated:
Contact information:
Phone: (800) 642-0039

My ex and I had a first and second mortgage with Flagstar, the house was sold in 2006 and for the last two years I have been trying to find out why it is still reporting on my credit. I have called probably 20+ times and no one can help me not to mention the customer service sucks. I get passed from department to department from one person to another. Does anyone know what’s going on over there! I guess not.

Moving into the third year~
Finally I find out that my ex husband sold the house as a short sale and the bank would not write of the money so they turned it into a personal loan and had him sign a promissory note for the balance. He apparently defaulted on the loan and now there is a judgment against him. So why is my name on this I ask? Why is it reporting to my credit? I did not agree to it and I did not sign anything. My name was quit claimed off the deed 9 months before it was sold, my ex was given the house in the divorce decree and I was not even part of the closing or the sale. Seems that no one knows or maybe they know too much, maybe this is why they won't provide me with the paperwork to see if my name was forged. Aggghhh!!! What is going on and will I ever get this fixed or am I doomed to a lifetime of bad credit because of this FISHY Company!!!

I vow to make sure that everyone I know never gets into bed with Flagstar EVER!!!

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Comments

  • +1 Votes

    Hi, I have contacted Freddie Mac and would like to know about how long the Hope for Homeowners loan modification process should take.
    In Feb. 2009 before I was in default, out of work Cal. teacher, I contacted my Freddie Mac loan servicer Flag Star bank and told them I needed some assistance. They sent me out the wrong paper work.
    I then contacted the Hope for Homeowners Housing Education Program a non-profit agency called Consumer Credit Counseling of San Francisco; they work in partnership with the Home Preservation Foundation;and they submitted my package on 4/16/2009 to Flag Star bank.
    We still waited for Flag Star to send us out the correct paper work. Anyway at the end of April the first part of May 2009 we submitted all required documentation to Flag Star.
    June they called and asked for the same documentation and we complied.
    July they called and asked for the same documentation and we complied,
    Aug. they called again requesting yet again the same documentation.
    All the time never processing our request and it was not until they told us it would be another 90 days to get to our package that it had just been submitted to them by us in July! that we called Freddie Mac.
    Here is a time line:
    1. Called Flag Star in Feb. asking for Hope for Homeowners loan modification package as we were looking at problems keeping our home.
    2. Flag star sends out wrong paper work.
    3. Contact the Help program Hope for Home owners and paper work was submitted in April.
    4. Flag star sends out right form.
    5 Late April, early like 1st week of May we send in completed package.
    6.May Flag Star request same documentation we comply again. (We have US mail green cards from where they signed for our packages).
    7. June Flag Star requests same documentation and we comply again.
    8. Late June early July another Consumer credit outfit calls us on behalf of Freddie Mac. They too submit package to lender again for loan modification under Hope for homeowners program.
    9. By this time I have been in contact with Flag Star on monthly basis. They keep saying we should get a phone call any day.
    10. July Flag Star requests same documentation again and says our package is a new package so it will be about 60 -90 days before they can get to it as it is first come first serviced.
    11. Aug. 2009 We contact Freddie Mac directly. They will look into it.
    12. Flag star calls us back same day we contacted Freddie Mac. All of a sudden our paper work is on someones desk.
    13. Aug. Flag Star calls us and asks for... you got it the same documentation. We send that in again. We are now over 2 months behind in our loan.
    14. Sept. 1st 2009 a Flag Star employee is in contact with us and says another 60 - 90 days to process our "New Package" as we just got them the documents, and it is on a first come first served basis. That she process in order received, this I understand okay; but How many dated from April, May are still awaiting being processed I wonder.
    How can this be a new package?
    They have had our information since April and early May.
    Just what have they been doing sitting on our paperwork? Taking no action to help us? Has Flag Star intentionally done this? If so why.

    Our other concern is that the moratorium on Foreclosure is running out in California this month, Sept., and that a 30 to 60 day loan modification process has already taken 5 months and now we are looking at another 2 to 3 more months making it in the 8 to 9 months range. Again is Flag Star intentionally doing this?
    Why have they waited or are waiting so long to process our package? Could it be they don't want to work with us or with the Hope for home owners program? We have a lot of questions and are quite frankly, tired and frustrated with the way they have treated us. We have continuously asked them to keep us updated, and they have not done anything except ask for the same documentations that have been mailed, faxed and e-mailed to them.

    Several red flags leave us with doubt and frustration with Flag Star. One is the landslide of complaints filed on consumer Internet sites from people just like us trying to get them to do the Hope for homeowners loan modification. Including past class action law suits against Flag Star and racial bias against Caucasian people that were charged more for their loans than other ethnic groups. The seemingly endless length of time they drag this process out. The endless asking for the same documents. The rudeness of their employees and the lack or answers with a big run a round.

    Is this a common banking procedure to drag out this process? Given the thousands of people like us we can understand maybe 120 days, but this is getting unreal.
    According to other lending institutions 90 days is more than enough time to process a loan modification.
    Is Freddie Mac receiving many complaints about Flag Star servicing?
    What is being done?
    When can we expect our loan modification to come through?
    Can anyone help us find answers to our questions?

  • Mo
      17th of Sep, 2009
    0 Votes

    If you have a complaint about flagstar bank you should contact your state Office of the Commissioner of Financial Regulation. They have a complaint form you fill it out and they look into this. If you know other who are with flagstar or other lenders you should incourage them to file a complaint form.

  • Jj
      21st of Sep, 2009
    0 Votes

    Anyone up for a class action suit against Flagstar on loan modifications? They have been jerking me around since June and I am not going to take it!!

  • Ne
      5th of Oct, 2009
    0 Votes

    Well, our story is very similar. We submitted a loan modification application from Flagstar Bank back in April. We filled the app. and mailed the requiered paperwork. We waited the ninety day period to hear from a loan specialist, but nothing. They send us a letter asking for more of the same paperwork we had submited before, and we mailed it. Two months latter they requested more of the SAME paperwork and I mailed it AGAIN.My husband lost his job back in January and was unemployed for about three months, I work part-time and go to school, we also have two younger boys. We hear a lot about loan modifications and we are really in need for help. I do not want to loose our home! We put in 20% when we bought it, about two years ago and now the property is not worth what we paid for. We are stuck with the huge payment and are waiting for response from our bank. But, guess what? A few weeks ago Flagstar Bank mailed us a letter that our loan has been sold to a new bank. WHAT! I could not believe this unsensible response. I had provided them with everything they required, then waited about five months now. All of this just to get sold to a new bank and begin with the loan modification all over again? That is just wrong!
    When I received the letter to notify us about our loan being sold to a new bank I called Flagstar Bank to ask about our pending loan modification. They were very nice and reassure me that we would not have to wait much longer, even with the new bank holding our mortage loan. They said to me that we would still have priority, since we have already turn in an application and that we will not have to start over with the whole waiting and submiting documents.
    Well, today I called our new bank and asked them if they were aware of our situation. The new bank is Nationstar Mortgage, and they did not know about our application. They do not have any of the docs we submited to Flagstar Bank and that were supposed to be transferred. I could star a new application all over and wait.
    I feel very frustraded and disrespected. We have made our payments on time and are getting some help from family. We have been waiting for help, because according to "Making home affordable, "we did qualify for a loan modification. Now, we do not know what to do. I know of many people who are not making their payments on their mortages and are walking away from their home. We did not want to do that, we were really in need for the first time in our life. I hate to have to drag my children into this, by feeling so scare and unsecure about our future.
    Flagstar should be held accountable for leading all of us into believing they were working on our loans. That was just a lie, good luck to all of you out there, who are going through the same nightmare.

  • Hg
      29th of Mar, 2010
    0 Votes

    I have been reading these horror stories as I was having the same issue with Flagstar since 8/2009. They gave me the run around as well. They told me It would first take 60 days, then they said 90 days and finally they told me it could take over a year. I found the website below and called them on 3/23/2010. Flagstar in turn called me back on 3/24/2010 changing their tune and telling me how I qualify for so many modifications. They were as sweet as pie!!! I received my loan modification documents today 3/29/2010. Call the number below (888)297-8685. They helped me tremendously.
    Avoiding Foreclosure: When a Lender Won't Work with You
    You've done all your homework, explored workout options, talked to a housing counselor and tried to talk to your lender. But, the lender won't work with you. What do you do now?
    For an FHA-insured loan
    Your lender has to follow FHA servicing guidelines and regulations for FHA-insured loans. If your lender is not cooperative, contact FHA's National Servicing Center toll free at (888) 297-8685, or via email. Whether by phone or email, be prepared to provide the full name(s) of all persons listed on the mortgage loan and the full address of the property including city, state and zip. We may be able to help you more quickly if you can also provide your 13-digit FHA case number from the loan settlement statement.
    For a VA-insured loan
    First, visit the VA Foreclosure Alternatives page. If you need assistance or have additional questions, talk to a Loan Service Representative.
    For conventional loans
    If you have a conventional loan, first talk to a HUD-approved housing counselor at (800) 569-4287. They may be able to help you with your lender. You can also contact HOPE NOW or call the Homeowners Hope Hotline at (888) 995-HOPE to ask for assistance in working with your lender.


    The website is : http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure/workingwithlenders

  • Cl
      3rd of Apr, 2010
    0 Votes

    www.FlagstarClassAction.com. For current/former employees.

  • Fl
      27th of Sep, 2010
    0 Votes

    Really unpleasant experience when refinancing through the broker.

    Nothing was done during 35 days (on 45 days of locking period)
    Multple papers requested with no reason for those
    Intervened in private data when checked paperwork
    Incompetent and sucpicous bank

  • Ar
      4th of Nov, 2010
    0 Votes

    Some of the same issues with The HARP program; I am suppose to sign this Friday 11/05/10 with the refi and now they are requesting bank statements to provide evidence of cash as they also require $554.58 in cash at signing; nowthing like this was needed from the begining when I signed the first set of douments to get the loan started, as I am already with Flagstar in regards to my mortgage!

  • Of
      4th of Mar, 2011
    0 Votes

    I agree I have had the same issues since 2009. Class action law suit, they drag it out so long you cannot be able to qualify for the HARP program.

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