Flagstarrefused short sale offer even though was the fair market value & instead bought our house in bergen county, nj for $100.00

G
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Verified customer

After almost 2 yrs. trying to do a short sale with Flagstar because our mortgage was under water (fair market value less than what was owned) & with Flagstar constantly losing paperwork, hundreds of resending & turned down for a loan modification Flagstar was unwilling to accept a cash offer for what they determined to be the fair market value. Instead, Flagstar bought our house for $100.00 at the foreclosure auction & turned down the $309, 000 cash offer. The investor was willing to buy the house in the "as is" condition because it was literally falling apart (which Flagstar was aware of the poor condition with all the numerous hardship letters that they requested & received, including the poor health of the owner-cancer, brain tumor, etc.) I do not understand how Flagstar can get away with these tactics. I believe Flagstar wants people to foreclose in order for them to get the full loan through HUD. Why does a government organization like HUD let this Bank take advantage of a government organization. Is this common for a government organization to be blindsided by banks such as Flagstar? Is this the way HUD gets their housing-from honest hardworking people who face unexpected hardship such as illness & loss of a job? Then they sell these REO properties to real estate & meanwhile people are thrown out of their homes with their credit destroyed. A short sale has less of a negative impact than a foreclosure. I filed a complaint with the CFPB, although it is probably too late for them to help.

Responses

  • Gr
    Grabma 2 Jul 24, 2012
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    a verified customer
    Verified customer

    I lived in Bergen county, NJ. So I used a lawyer who I knew & was strictly a real estate lawyer. Dealing with Flagstar is a nightmare. And despite using a lawyer I still lost in the end.

    0 Votes
  • Ja
    Janet Fairley Jul 23, 2012
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    a verified customer
    Verified customer

    I am currently seeking an attorney to represent me. They have increased my payments because of an escrow deficit that I have paid. I also would like to know if they can legally charge $165.32 for a late fee.

    0 Votes
  • Gr
    Grabma 2 Jul 23, 2012
    This comment was posted by
    a verified customer
    Verified customer

    Yes, we used an attorney throughout this process to end up with a foreclosure after all. Flagstar jerked them around also by constantly losing paperwork, etc.

    0 Votes
  • Ja
    Janet Fairley Jul 23, 2012
    This comment was posted by
    a verified customer
    Verified customer

    Have you consulted with an attorney?

    0 Votes

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