Consumer complaint received 2018-01-30
Company: Flagstar Bank, N.A.
State: GA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Description : I am the property owner of a condo in XXXX XXXX XXXX XXXX that is primarily used as a vacation rental. I purchased this property XX/XX/XXXX with a loan from Flagstar Bank. In XX/XX/XXXX two hurricanes hit XXXX XXXX that resulted in major damage to the island. There was no water or power to my from XX/XX/XXXX XX/XX/XXXX. In XX/XX/XXXX I contacted Flagstar about my options for payment during this time. Below is a summary of events that occurred since : XX/XX/XXXX Hurricane Irma & Maria loss of power & water. Contacted Flagstar regarding payment options. I was advised I was eligible for a 3-month forbearance. I asked the representative if this would have any impact on my credit, additional interest owed and any negative impact on my existing loan and was told no. 

XX/XX/XXXX Received Flagstar monthly mortgage statement stating I owe {$4100.00} by XX/XX/XXXX and {$4200.00} if not paid by XX/XX/XXXX. 

XX/XX/XXXX Received Flagstar notice of payment past due from the loan counseling department. It stated I owed {$2000.00} including late fees and if payment wasnt made by the end of the month my account would be in default and will be reported to the credit bureau. 

XX/XX/XXXX Received Flagstar notice of assigned loss mitigation representative for my loan.

XX/XX/XXXX Received Flagstar notice of default from the loan counseling department. The letter states my account is now in default. 

XX/XX/XXXX Received Flagstar mortgage statement stating I owe {$6300.00} by XX/XX/XXXX and {$6400.00} if not paid by XX/XX/XXXX. 

XX/XX/XXXX Received Flagstar notice of acceptance to Disaster Forbearance Plan from the loss mitigation department, which is a temporary suspension from making regular monthly mortgage payments. The letter states that at the end of the forbearance period the past due payments may be spread out of a specified period of time based on the loan type. I spoke to a Flagstar representative and was told I have  3 options for repayment : ( 1 ) bring the loan current by XX/XX/XXXX, ( 2 ) pay back over a 6-month period or ( 3 ) apply for additional help through the loss mitigation department. I informed the Flagstar representative I would pay back over a 6-month period.

XX/XX/XXXX Received Flagstar mortgage statement stating I owe {$8500.00} by XX/XX/XXXX and {$8500.00} if not paid by XX/XX/XXXX. {$3000.00} payment made confirmation # XXXX. This is the 1st payment towards the installment of payback over a 6-month period. 

XX/XX/XXXX Received Flagstar mortgage statement stating I owe {$8700.00} by XX/XX/XXXX and {$8800.00} by XX/XX/XXXX. 

XX/XX/XXXX Received Flagstar notice of failure to make payments caused default on mortgage. To cure default all payments due since XX/XX/XXXX, totaling {$6500.00} must be paid including all unpaid late charges and current months payment. It states I have 30 days from the date of this letter to make overdue payment. If I fail to cure the default the indebtedness may be accelerated, the entire amount due and payable immediately, and foreclosure and sale of the property ( received letter twice ). 

XX/XX/XXXX Received Flagstar notice of {$3000.00} payment received.

XX/XX/XXXX Received Flagstar mortgage statement stating I owe {$8700.00} by XX/XX/XXXX and {$8800.00} if not paid by XX/XX/XXXX XX/XX/XXXX Received Flagstar mortgage statement stating I owe {$6500.00} by XX/XX/XXXX and {$6600.00} if not paid by XX/XX/XXXX. I called to make payment over the phone. The representative said I owed over {$6000.00} and had to pay in full. I explained to her I was participating in the Disaster Forbearance Plan and making monthly payments over a 6-month period. She insisted I had to pay the amount in full. I informed her I was only paying {$3000.00} that was agreed to previously. When I asked her to transfer me to another representative she said they would tell me the same thing. I only authorized payment of {$3000.00}. {$3000.00} payment made confirmation # XXXX. This is the 2nd payment towards the installment of payback over a 6-month period. 

XX/XX/XXXX Received Flagstar notice of {$3000.00} payment received.

XX/XX/XXXX Received Flagstar notice of failure to make payments caused default on mortgage. To cure default all payments due since XX/XX/XXXX, totaling {$4300.00} must be paid including all unpaid late charges and current months payment. It states I have 30 days from the date of this letter to make overdue payment. If I fail to cure the default the indebtedness may be accelerated, the entire amount due and payable immediately, and foreclosure and sale of the property ( received letter twice ). 
Statement of Claim : Flagstar enrolled me in the Disaster Forbearance Plan for a period of XX/XX/XXXX XX/XX/XXXX. Flagstar knowingly sent multiple documents stating borrower was in default. Notices threatened borrow would be subject to all of the following : ( 1 ) reported to the credit bureau and negatively impacting credit, ( 2 ) acceleration clause requiring the entire loan amount payable, and ( 3 ) and sale of the property. These acts are very misleading and predatory tactics to bully the borrow into immediate payment of loan, which is opposite of the intentions of the Disaster Forbearance Plan.

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