Consumer complaint received 2019-05-03
Company: Flagstar Bank, N.A.
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
I applied for loan modification last year with the help of a hud counselor. The bank is Flagstar bank. They put me on 4 months of pretrial payments which I made. They approved me for final modification starting XXXX of this year. They requested a power of attorney which I had an attorney prepared fro me and the reason they says is because my husband was XXXX and I signed the medication application without him which they were ok with at the beginning when the hud counselor asked. I got that document for then signed by my husband which allows me to proceed. I made my first modified payment in XXXX and XXXX, and each time I called I asked what was going on. They said they were trying to take my husband off the mortgage and deciding with underwriter /lawyer and the rep said they will get back to me. I called numerous times leaving messages for my point of contact who never called or emailed me any information. I was waiting and I called and was on top of everything. I realized that something was going on and no one was calling me back. I even requested to talk to the manager who never called me back to complain about my point of contact. They started to talk about a quit claim deed ( I called the lawyer who prepared my Power of attorney paperwork he told me the cost ) He then called the next day and said why is this bank ( Flagstar ) asking your for a quit claim deed he said your husband is not on the deed just you. He said If they look on the XXXX XXXX website they could pull the info. The bank has now requested me to reapply for the modification so I had to gather documents again, I delivered all of it to my hud counselor. I call the bank two times to let them know and to clarify why they need a quit claim deed but no one never called me back. I was upset and frustrated because the deadline to have all documents in was until XX/XX/2019. I called and spoke to a rep that asked if I was divorcing or giving up my house I said no. She said I should write a letter stating that I had no intentions of divorcing and my husband is XXXX which I had mention in my hardship letter. I pulled the document form the XXXX XXXX website to show I am sole owner of my home. My hud counselor sent in all the documents around mid this week via fax and email. I finally received a call from my new point of contact XXXX who said they are now reviewing the documents and then In 5 days it will go to underwriter. I decided to call back my hud counselor and explained what was going on. 
I called to make my XXXX payment and the rep told me that I am in preforeclosure and could not accept my payment. I was really upset because the bank received everything and now asking for another document which did not seem necessary and expensive on me. I feel there has been serious lack of communication, and I have XXXX kids and struggling on my own. I applied for a modification to get help to stay in my home not to loose my home. Please help me and others. this in unfair practice. My credit is also messed up because of this.

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