Consumer complaint received 2021-12-15
Company: Flagstar Bank, N.A.
State: KS
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I ask for your help to get Flagstar Bank to honor request for COVIDXXXX Recovery Standalone Partial Claim. 

Summary of Complaint against Flagstar Bank : Flagstar Bank accepted my forbearance period and discussed the option to set-up COVIDXXXX Recovery Standalone Partial Claim at the end of forbearance. They have failed to set-up COVIDXXXX Recovery Standalone Partial Claim as agreed. Over the past few months Flagstar Bank has failed to send me the letter they promised that I am supposed to sign accepting the COVID-XXXX  Recovery Standalone Partial Claim. It appears they are now forcing me to submit a hardship application instead of exercising the COVIDXXXX Recovery Standalone Partial Claim which makes more sense since the forbearance was granted due to COVID-XXXX Why are they not honoring my request for COVIDXXXX Recovery Standalone Partial Claim? 

Timeline of Communication with Flagstar Loss Mitigation : XX/XX/2021 : Within the timeline and due dates they set per letter they mailed me I called Flagstar Bank to advise we would like to start making the regular monthly payment again ( and exercise COVID-XXXX Recovery Standalone Partial Claim ) starting on XX/XX/XXXX. I was told to expect a fed-ex letter with instructions and letter that needed to be notarized to complete COVIDXXXX Recovery Standalone Partial Claim. The fed-ex letter never arrived during the month of XXXX. This is where it all went wrong since XXXX was negligent in not following through. 

XX/XX/2021 : I called to check the status of COVID-19 Recovery Standalone Partial Claim since I never received the letter to be notarized in XXXX as agreed. The person I spoke to apologized and assured me he would submit request to have fed-ex letter mailed to us and extended the forbearance for us due to this oversight. He could not explain why the XXXX letter was not sent as agreed in XXXX. 

XX/XX/2021 : I sent a fed-ex letter to XXXX asking for status if COVIDXXXX recovery standalone partial claim since I never received the later to be notarized as agreed. This letter was handled carelessly since I received a letter XXXX weeks later asking me to submit loss mitigation application by XX/XX/2021. Again, not what I was originally told during the forbearance period. You can see their history of ignoring request for COVID-19 Recovery Standalone Partial Claim. 

XX/XX/2021 : I called Flagstar Bank again and spoke to person by the name of XXXX. He said he would escalate my request to a manager to see if they can place loan back on forbearance and would have a manager call me within a week. As of XX/XX/2021 no phone call received. 

XX/XX/2021 : I uploaded letter to the Flagstar Bank website requesting COVIDXXXX recovery standalone partial claim as originally agreed. XXXX days after uploading letter I noticed the loss mitigation status went from Removed to Active for a few days and today loss mitigation shows Removed again. I am so confused as to the status now. It appears they will be pushing my loan into foreclosure soon and I am very concerned, however, I have not received any mail from them. Flagstar Bank needs to follow through and move loan from forbearance period ending to COVID-19 Recovery Standalone Partial Claim as agreed and offered. 

Please contact Flagstar Bank and advise them COVID-XXXX Recovery Standalone Partial Claim needs to be set-up as originally agreed so we can make payment beginning on XX/XX/2021. 

I do not feel comfortable calling Flagstar Bank since my requests for COVID-XXXX Recovery Standalone Partial Claim were not taken care of as agreed. It was as if I never called since I am being required to submit a loss mitigation application. The loss mitigation application does not allow same benefits as COVID-XXXX  Recovery Standalone Partial Claim. 

Your prompt attention to this complaint is greatly appreciated.

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