Consumer complaint received 2020-03-18
Company: Flagstar Bank, N.A.
State: AE
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
Sir/Maam, This is a Dispute of Foreclosure We request a Case Review and seek to rescind the supposed foreclosure and sale of our home. 
We own a home which we designed, built, and have occupied XXXX until XX/XX/XXXX. We maintained a mortgage in good standing with uninterrupted on-time monthly mortgage payments during this entire time. 
We were issued XXXX XXXX XXXX XXXX to an overseas assignment, on-board-date XX/XX/XXXX. We moved and have resided in XXXX since that date. 
Without our knowledge or any confirmed notification, XXXX XXXX  sold our loan to Flagstar Bank around XXXX/XXXX  XXXX? We remained uninformed until Friday XXXX XX/XX/XXXX. 
Automated monthly payments from our primary bank, XXXX XXXX XXXX XXXX, continued to be sent to XXXX XXXX. 
( Note : We did post office change of address forms, notifications, etc. But fairly quickly our stateside POCs expired. i.e. work email changed, stateside home/cell phone disconnected, etc. ) Since being stationed in XXXX, we have obtained renters to live in our home. 
We continued sending autopay payments to XXXX XXXX, unfortunately the payments never reached Flagstar Bank. 
- XXXX XX/XX/XXXX our property manager contacted us stating the tenets had some information regarding something related to foreclosure? 
- XXXX XX/XX/XXXX ( over the holiday weekend ) sparring the details, we painstakingly unraveled the story. Ultimately, we discovered Flagstar Bank ( Mortgage Co ) and XXXX XXXX. XXXX ( Law Firm )  owned the loan and should be contacted to help fix things as the issue was in foreclosure. 
- We immediately ( XXXX XX/XX/XXXX ) submitted a loss mitigation application, to Flagstar Bank documenting our situation and indicated a willingness and ability to pay the outstanding balance in full. As this was our newly discovered mortgage company, we asked for the mortgage contract incl terms, account #, contact information, etc. We attempted to pay {$20000.00} XXXX the calculated balance given by Flagstar ) but were told payments could only be accepted by XXXX XXXX. XXXX. XXXX XXXX. XXXX told us they could only accept payment in full ( incl late fees, penalties, interest, etc. ). They indicated they would give us the full acceptable payment amount in 4-5 business days. No partial payments would be processed. 
- We contacted them repeatedly for updates. XXXX XX/XX/XXXX during another follow-on call which we initiated with the XXXX XXXX XXXX law firm, the customer service rep informed us she had the total cost and was willing to e-mail it to us. Additionally, we asked for any paperwork related to the start of the foreclosure process. We received an email with 2 attachments, Reinstatement figure {$22000.00} dated XXXX XX/XX/XXXX and initiate foreclosure letter dated XXXX XX/XX/XXXX. 
- We attempted to pay that day XXXX XX/XX/XXXX, but noticed the amount was only valid until XXXX XX/XX/XXXX. [ Also, payment could only be done via certified check. Being overseas delivering a certified check would take 2-3 business days at best. ] We called again that same day XXXX XX/XX/XXXX to get the total valid for XXXX XX/XX/XXXX and possibly explore other payment options ( bank wire transfer, electronic transfer, other ) but we then were informed the property was sold XXXX XX/XX/XXXX, the matter was closed. We could attempt escalation, but there was not much that could be done. 
[ Note : During two conversations with Customer Service Representatives we were informed there is a reference in the record that we made provisions to reduce our payments, ( +/- XX/XX/XXXX ) but failed to meet this obligation/ agreement. That reference is incorrect. Our FlagStar initial contact started XXXX XX/XX/XXXX. Prior to that date we did not know FlagStar existed nor had any contact with the bank. ] We have earnestly contacted both Flagstar Bank and XXXX XXXX. XXXX communicating by phone, e-mail, and fax dozens of times over the past weeks. In addition to those numerous contacts have submitted : * Loss Mitigation Application package * Formal change of Contact ( POCs ) * SCRA servicing request package * Paid {$26000.00} to cover outstanding mortgage, fees, penalties, + unknown * Paid {$2500.00} monthly mortgage ( as best we could determine absent any official correspondence our account access ) As of today, all attempted payments ( {$26000.00} and {$2500.00} ) have been returned to our bank account from Flagstar Bank. We have repeatedly asked for written information regarding our loan, account, outcome of the foreclosure action, anything. Both Flagstar Bank and XXXX XXXX. XXXX have stated they can not give any information and consider the matter as closed.

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