Consumer complaint received 2015-06-07
Company: Flagstar Bank, N.A.
State: NJ
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I am the current owner and resident of the property located at XXXX XXXX XXXX, XXXX, NJ XXXX. On or around XXXX XXXX, XXXX, a mortgage was recorded in my name to secure a debt obligation for a loan in the amount of {$290000.00} that I allegedly received and promised to pay to the order of XXXX XXXX XXXX. The loan was transferred and assigned to Flagstar Bank in the same loan transaction. Prior to this alleged loan with Flagstar Bank, I had a loan with XXXX XXXX XXXX for {$230000.00} XXXX XXXX ). At the time of this alleged loan transaction, I had been looking into the possibility of getting a lower interest rate so I could have a lower monthly payment. A mortgage broker with XXXX XXXX XXXX, contacted me by telephone claiming that he could help me get a lower interest rate. Prior to this situation, I had previously refinanced the property to pay off bills or get cash back from the equity. This time my only goal was a lower interest rate so I could get a lower payment. I did not realize that to get a lower interest rate, I would be required to refinance or modify my loan with XXXX. The mortgage broker did not adequately explain that his role was XXXX of finding a lender that would give me a new loan that had a lower interest rate. Unfortunately, shortly after he contacted me, XXXX. While I was recovering, the mortgage broker called me and told me that he had gotten me a lower interest rate and that I could start making monthly payments at the new lower amount. XXXX I assumed that the mortgage broker took care of whatever was necessary to get me a lower rate and trusted that things were handled properly. I have consistently made my monthly mortgage payments to Flagstar Bank since the alleged loan closed in XXXX of XXXX. In XXXX or XXXX XXXX, I contacted Flagstar Bank to request a lower interest rate and lower monthly payment. I have since retired XXXX so the amount of monthly income I receive now is much lower than when I was working. Flagstar enrolled me in a three month trial payment plan and informed me that if I made XXXX consecutive payments of approximately {$1900.00} on time I would qualify for the lower interest rate. I made XXXX on time consecutive monthly payments, but I still did not receive the lower interest rate. When I contacted Flagstar about the matter, I was informed to keep making the lower payments until I heard otherwise. In XXXX XXXX, I received notice that my new monthly mortgage payment would be {$2900.00} effective XXXX XXXX, XXXX. Flagstar did not follow through with the terms of the trial payment plan and instead attempted to force me to pay an amount that exceeded what I could afford. Flagstar has yet to present me with any options that would allow me an affordable monthly payment. I have not made a mortgage payment to Flagstar since XXXX XXXX because I can not afford to pay {$2900.00}. Flagstar has not initiated foreclosure proceedings thus far. Over the past year, I have learned that by me not actually signing any loan documents with XXXX XXXX XXXX, the loan with Flagstar is illegal because it was obtained fraudulently and under false pretenses. Each document in the loan package ( including the note and deed of trust ) shows my forged signature, but not my actual signature because I did not sign them. The HUD-1 settlement statement also shows that I was to receive {$15.00} out of the loan proceeds. However, I never received a check for {$15000.00} or for any other amount from this illegal loan closing. I did not operate with full knowledge and understanding at the time of the loan transaction with XXXX. I can not afford the legal fees it would cost to sue Flagstar or defend myself in a foreclosure proceeding over this issue. However, I really need this issue resolved.

Company response to consumer: Closed with explanation