Consumer complaint received 2021-12-28
Company: Flagstar Bank, N.A.
State: MI
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
I have a VA mortgage through Flagstar Bank, and during covid, when my wife was no longer able to work and staffing at my company diminished so I could not work as much overtime, I entered into the forbearance program. Soon after i was put on military orders to administer Covid vaccines and was making more money than I had been for 2 1/5 months. At the end of this period I had caught up on any missed payments, but with the amount of hours available at my job and my wife still unable to work, I eventually became delinquent again. Eventually I ran out of time to be on the forbearance plan, and was taken off without anyone telling me. Once I found out, I expected to have the options to bring the loan current that had been discussed. After a short time of waiting for them to respond with my options, I called back and was only then informed that I needed to fill out a loss mitigation application. After filling this out online, I again waited for about 2-3 weeks for any response. The application was first completed early XXXX, and on XX/XX/XXXX i was finally contacted for the first time and told that additional information was needed. They said that I was missing one date, a box needed to be checked on my 4506C, I needed to type 1040 on the 4506C line 6, they wanted a VA XXXX letter to verify how much I receive each month ( even though i provided all my bank statements showing the automatic deposits ), and I could write a letter on the reasons for default. When I had finished handwriting the letter and ready to type it, and finally found the VA XXXX letter, I went onto the website to make the corrections, and found that it said it had been submitted for review that same date already, and I was to wait for further directions or if any changes needed to be made. It was only after waiting another 2 weeks that i realized when i logged on again, it said the appkication had been submitted on the then current day, XX/XX/XXXX. I then realized that any time i would sign on it would just say that they are reviewing the details of my application and the date submitted would be the current day. After then trying to contact them by phone multiple times and waiting hours on hold before having to hang up each time, I woke up on XX/XX/XXXX to find an envelope taped to my front door just saying to call them today. When I called and eventually got through, expecting to finally be told the status of my application and what options I would be given to bring the loan current, I was told that I do not have an application pending at all, and they had closed it on XX/XX/XXXX due to not having the information that I had been called about and told I could add on XX/XX/XXXX. That means that as far as they are concerned, the application was already closed and a new one needed to be hand written ( they apparently only allow 1 online submission ) for 2 weeks when they had finally contacted me for the first time and ensured me that I would be fine if I just uploaded those documents and changes. None of that makes sense to me at all. I am now on XX/XX/XXXX attempting to hand write a new application and get faxed asap, since the only thing preventing them from initiating foreclosure is the fact I am currently protected under the servicemembers civil relief act, but that protection should be ending within the next week or so I believe ( they could not tell me when it would end ). I have just very recently been able to start working the amount of hours needed to stay current on my mortgage, and will even be starting a new job in XXXX making much more money, but without the options they promised to offer me to help bring my loan current, I am afraid myself and my wife and XXXX XXXX XXXX will soon be kicked out of our home.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation