Flagstar Banksitting on making home affordable

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, husband is working), 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?

Responses

  • Mi
    Michelo2000 Sep 23, 2009

    Funny, I just typed in Home affordable Complaints into Google and Flagstar Bank and your complaint was the top one. Our time line is identical to yours only we haven't made a payment in 6 months because they told us not to. After all this documentation and communication they finally said we don't qualify because they would not get enough payment based on our income. Duh... That's bogus because that's the purpose of the Government subsidy money is to offset their loss for 5 years. I do believe they are playing a game and do not want to comply with the program. They received 500 million bailout and also have access to 75Billion for this program

    0 Votes
  • In
    In Mortgage Hell Sep 23, 2009

    I had the same timeline I sent my paperword the first week of May, I called them two weeks later because I never heard from them. That's when they told me that I was missing a page which was faxed the next day. And that is when I found out that it would be 90 days from that date. But I was told 3 weeks ago that they would make a decision in 2 weeks. I gave them an extra week because I thought I'd get something in the mail, and I did!!! They sent me a letter to let me know that they sold my loan. So now I have to wait until at least October 7th to talk to the new loan company Nationstar. I feel they led me on and lied to me for the past seven months.

    0 Votes
  • Ka
    kashreddy Oct 02, 2009

    I'm in the same boat as all you guys. I sent in my paperwork 4/5/09. They still haven't modified my loan and now sold it to Nation Star. Something has to be done. Any advice as to what next steps should be?

    0 Votes
  • Ti
    Tide Oct 02, 2009

    My husband and I have been given the run around by Flagstar for over 6 months now. Today, I was at the very end of my rope. I called manager after manager and was told that people who aren't current on their loan (which we are) are "pieces of ###" and that "it is not flagstar or the governments fault that we made a bad investment!" This is from counselors at flagstar. Nice customer service.

    Our newest obstacle is an imaginary piece of paper work that my husband is supposed to get from the unemployment office that Flagstar claims is a direct requirement from the US Treasury. BS! After calling both of my state senators, they basically told me that Flagstar is straight up lying to us.

    Here's what bother senators offices told us to do, maybe it can help some of you... We called the National HUD Helpline number at [protected] and asked to be put in contact with our local HUD counselors. They told me that these people will try to help you but that your best bet is to decline their help, ask for your local office, make an appointment and go in to speak with someone.

    So we did. Our appointment is on Monday. However, in the short conversation over the phone with the local HUD counselor, I was told that you do NOT have to deal with flagstar and their BS, these counselors act as you loan servicer and deal directly with Fannie or Freddie and can get it done in a matter of days.

    I really hope some of you read this and it helps, Flagstar is ridiculous and you can bet that once this loan modification is over and done with, I will be raising hell with whomever I need to about Flagstar Bank. Jerks.

    0 Votes
  • Ru
    runs Apr 12, 2010

    Call the FTC

    0 Votes
  • Ru
    runs Apr 12, 2010

    Call the ftc

    0 Votes
  • Ke
    Kelly Kovacic Oct 19, 2010

    We put in a loan mod with Flagstar Bank in March 2010 completed nec paper
    work faxed them. In May we received a letter stating they need one more
    item 08 tax returns, faxed them over.

    We had done a loan mod prior and were told we could not make any payments
    in order to qualify so we did the same thing. Prior took 5 months signed
    and done.

    In July I start receiving junk mail that my house was foreclosed, call
    Flagstar and they said yes they foreclosed because we didnt make the
    payments. Sale date was set for 10-28-10, he said my file is inactive
    because we didnt send every in every 30 days, I told them how it was
    handled last time he said they just changed it from 60 day to 30, told them
    it wasnt but at begining and end prior.

    Sent everything in each month faxed over and mail to be sure they received,
    We had never received a call from Flagstar once, so I would call to see if
    received, they would always say no the file is inactive again.

    One girl even told me I should be happy that my house is on the foreclosure
    list because they might be able to look at the file sooner, Well that
    never happened.

    I do qualify for a loan mod, I lost 1 day a week at work, I broke my foot
    and was off work for 7 weeks with no pay and pheonompia.

    Please help!!!

    0 Votes

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