Consumer complaint received 2022-08-18
Company: Flagstar Bank, N.A.
State: TN
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Struggling to pay mortgage

Complaint:
My hardship began on XX/XX/XXXX when I went into forbearance with Flagstar Bank. On XX/XX/XXXX, after giving my wife permission to speak to Flagstar, my wife spoke to XXXX and asked for loan modification to begin. She was told that the process takes up to 4 weeks and the underwriter needs to approve this reset option. She was also told that we did not need to make payments while we were on the forbearance. We were told to check in every month on the XXXX to get an update on the status of the reset option. On XX/XX/XXXX my wife talked to XXXX and was told that the loan modification was still under review and can take up to 4-6 weeks. On XX/XX/XXXX my wife talked to XXXX and was told a loan modification/loss mitigation application would be mailed to us and that XXXX had extended the forbearance until XX/XX/XXXX and gave my wife the wrong number to the XXXX XXXX XXXX XXXX XXXX XXXX On XX/XX/XXXX my wife talked to XXXX and did a check-in and also talked to XXXX and confirmed we were continuing with the forbearance and that we were 7 payments behind as of XX/XX/XXXX and to start making payments if at all possible. On XX/XX/XXXX my wife talked to XXXX and was informed that the loan modification wasn't started until XX/XX/XXXX and the past due amount is {$5000.00}. on XX/XX/XXXX my wife talked to XXXX and was told that the loan modification can take longer than 4-6 weeks and my wife talked to XXXX XXXX XXXX XXXX the loan and the steps necessary to do this. On XX/XX/XXXX when my wife was making the second payment of XXXX, she talked to XXXX who transferred her to the hardship relief taskforce and was told that the loan modification was with the underwriting team and under review. On XX/XX/XXXX I talked to XXXX and was told that we had never taken any steps to reset the loan. My wife talked to XXXX the same day and told her that nothing was started because of the confusion of talking to two different people who were not saying the same thing. This statement is false. Called back and my wife talked to XXXX and corrected her that the hardship was permanent like she had been stating since we first went into forbearance in XXXXXXXX XXXX  XXXX. My wife was told that the new payment amount was {$640.00} because we were behind in escrow. My wife called me at work and both of us talked to XXXX who then confirmed some information to " get this going again ''. We are supposed to be assigned a single point of contact who would be familiar with our situation so there would no longer be any confusion. My wife asked who that would be and was told that we would find out the next time we called. On XX/XX/XXXX my wife called to do a check-in and talked to XXXX who said he did not need a hard copy of the loan modification. She told him about all the different people she had talked to and what they had said ( my wife keeps excellent notes and has a few of the conversations with Flagstar recorded ) and how the reset option was supposed to have started on XX/XX/XXXX. He investigated the notes on their end and told her that it had not been started so she asked for the call to be escalated. Talked to escalation XXXX XXXX and was told that we have to come out of forbearance and stay out of forbearance in order for the modification process to begin. I was home by this time and I asked for a deferral to be started which would take the eight payments we were behind ( XXXX {$620.00} ) onto the maturity date of the loan. We were conditionally approved and were to receive documents via XXXX in 4-6 weeks. On XX/XX/XXXX my wife called and talked to XXXX who said the loan modification was actively under review. Later on in the call, she spoke to XXXX who said we could stay in forbearance while under review. My wife told her what XXXX, the escalation XXXX had told her. XXXX said that wasn't necessarily true. On XX/XX/XXXX my wife called to ask what kind of loan I have and talked to XXXX. She told XXXX about talking to XXXX and XXXX and was transferred to XXXX in hardship relief taskforce. XXXX told my wife that the state of Tennessee is making payments of {$6400.00} in increments for our past due amount. My wife told her that XXXX had denied my application and XXXX checked and said that Flagstar is waiting until XX/XX/XXXX to hear from the state about when the funds will be released. Between XX/XX/XXXX until XX/XX/XXXX of XXXX my wife has talked to XXXX, Al, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX XXXX ( he was supposed to vbe our single point of contact but said the person had changed to XXXX XXXX ), XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, and finally XXXX. Each person has told her something different and XXXX and XXXX were supposed to submit complaints from the information received from my wife. As of today, XX/XX/XXXX, we are still 8 payments behind ( {$5000.00} ) and the loan has been coded for the partial claim ( deferral ) option and been submitted to the underwriting team. My wife is supposed to call back again sometime next week. We are in constant fear of being forclosed on and the end of our current forbearance ends and that option is exhausted on XX/XX/XXXX. My wife has every piece of correspondence ( letters and emails ) since this began in XXXX of XXXX along with a few recordings of the converstions with the representatives of Flagstar Bank. She also has very detailed notes of the conversations with them and has been to every website they have recommended. Flagstar has put us into forbearance twice without our permission. I want something done so we can stop worrying about losing 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