Consumer complaint received 2023-09-18
Company: NEW YORK COMMUNITY BANCORP INC
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage
Sub-issue: Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu

Complaint:
I am writing to file a formal complaint against Flagstar Bank regarding their handling of my loss mitigation application and the subsequent wrongful foreclosure sale of my property. Despite my diligent efforts to submit the required documents, Flagstar Bank repeatedly claimed not to have received them, leading to a severe financial crisis and nearly the loss of my home had I not filed an involuntary bankruptcy the midnight before the sale date. I was made aware of the sale by a ring of my doorbell. A realtor came to my home to see if they could make a deal to purchase my home instead of having it go to auction the next day. I was told by a Flagstar representative that the foreclosure was still in suspension pending the processing and review of my loss mitigation application. I was made to believe my file was complete after reviewing the document uploads with a Flagstar representative. We went through every document Id uploaded to confirm all documents requested had been received. I got the verbal confirmation that I would just need to wait for review and someone would contact me or I could call back to check on the status in a week. Due to Flagstar 's negligence I was forced by their actions to file for bankruptcy because in the state of Colorado a homeowner does not have the right to remedy after a foreclosure sale. 
Here are the details of the situation : XXXX. Loss Mitigation Application : I initiated a loss mitigation application with Flagstar Bank to seek a resolution for my financial hardship and to prevent foreclosure. A financial hardship as a result of my XXXX diagnoses and medical struggles. I submitted the necessary documents multiple times, using Flagstar Banks secure online document upload portal. 
XXXX. Recurring Document Claims : Despite my efforts, Flagstar Bank consistently claimed not to have received my documents. I have a comprehensive record of submission. Their refusal to acknowledge receipt of the documents left me in a state of uncertainty and frustration. Or when they did acknowledge receipt, theyd say my documents were expired and told me to start all over again. 
3. Wrongful Foreclosure Sale : Due to the lender 's repeated claims of non-receipt, my loss mitigation application was never properly processed. This lack of communication and accountability from Flagstar Bank led to a wrongful foreclosure sale date of my property, causing significant financial and emotional distress. I had less than XXXX hours to file, at midnight before the foreclosure sale date an involuntary bankruptcy to stop the sale that should not have been scheduled because my application was still in process. After endless amounts of repetitive documents being submitted to the lender multiple times, due to the same request over and over again, the response was : Your documents were never received, the application has expired and you must start the process all over again. I corrected multiple representatives that the documents were uploaded before the expiration date, but was told it did not allow enough time for a processor to review it. The representative said theyd send an escalation ticket to the processor to see if theyd still consider reviewing it, but the processor declined to do so because the application has now expired. I attempted to explain once again that the documents were uploaded before the application expiration. But the representative stated that it takes XXXX hours for the upload to process into the system. I disagree that this should be grounds for my documents not to be accepted and reviewed due to the lenders uploading system. I did what was requested on my part. And that was to submit my documents by a certain date. 
XXXX. On another occasion, I uploaded documents and was told to upload them again because the documents were expired because they were dated more than 30 days prior. Once again, that should not be grounds to not review my documents or to deny my application because the lender took too long to review my documents. This has been an ongoing battle for almost a year. On other occasions it was requested that I circle certain items on documents I'd already uploaded. I complied, but still received continued repetitive requests. I was also told by another representative that even if my documents were uploaded on the due date and the upload didn't fully make it into the system until the following day. The processor would still review it. But this was not the case. 
XXXX. My initial loss mitigation application was on XX/XX/XXXX and then there were requests for additional documents, repeat requests and requests for me to resubmit on the following dates. XX/XX/XXXX ( repeat doc request ), XX/XX/XXXX ( new app and docs submitted ), XX/XX/XXXX new app and docs submitted ) XX/XX/XXXX ( realtor rings my doorbell to offer to buy my house instead of having it go to sale at foreclosure auction on XX/XX/XXXX ), XX/XX/XXXX I filed for involuntary bankruptcy after finding out the lender had authorized the foreclosure sale for XX/XX/XXXX, XX/XX/XXXX XXXX files for relief of stay, XX/XX/XXXX Bankruptcy dismissed, XX/XX/XXXX ( new app and docs submitted ), XX/XX/XXXX ( repeat doc request ) XX/XX/XXXX ( new app and docs submitted ), XX/XX/XXXX ( repeat doc request ), XX/XX/XXXX ( repeat doc request ), XX/XX/XXXX ( app cancelled, lender said missing docs not received by deadline of XX/XX/XXXX ), XX/XX/XXXX XXXX. After requesting an escalation. I spoke to a rep who confirms what documents are being requested. I explain this is once again repeat request of my documents. The representative explains that something additional needs to be added to my letter of explanation and then I needed to resubmit it via the upload portal. The representative assures me that the upload will take between XXXX hours to upload to their system and that hed call me back personally to confirm whether or not the document was received. Needless to say I did not get that call. 
XXXX. Its quite frustrating to have to call and be placed on hold for long periods of time. And to listen to a recording that states that if you have a loss mitigation application in process, it could take up to 30 days for review and I did not need to wait on hold to speak to someone because Flagstar Bank would contact me if anything additional was needed. Its also frustrating to have to chase a phantom representative that cant be found and supposed notations of the previous call that were supposed to be entered in the system for the next representative to see and pick up where the last call was left off arent there. 

I have made every effort to resolve this matter directly with Flagstar Bank, but the many different explanations, excuses and lack of accountability has left me with no other option but to seek assistance from the Consumer Financial Protection Bureau.

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