Consumer complaint received 2022-08-03
Company: Flagstar Bank, N.A.
State: OH
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
To : Flagstar Mortgage From : CF RE : Account number XXXX XX/XX/XXXX To Whom it May Concern : Over the past few weeks I have diligently attempted to resolve the issue of my delinquent account. I have been in the loss mitigation process since XX/XX/XXXX due to delays in communication on the part of Flagstar, extended wait times ( up to one hour and 15 minutes with no answer and no call back as the system indicated ), and alleged missing information that I know was submitted. At one point, it was nearly impossible to reach anyone at Flagstar which made communication nearly impossible to achieve which caused major delays in the processing of my applications. I was told that it was my responsibility to keep calling back. 

I have had one application closed due the request of an additional pay stub which I was unable to retrieve from my place of employment until the building reopened in XXXX, and the second completed application was denied.. I filed an appeal immediately after which was denied as well. On the same day I received the appeal denial letter, I also received a package with an application for a partial claim. I did not complete the partial claim forms because I had already sought assistance from the XXXX XXXX of XXXX. My certified mortgage counselor assisted me in completing and receiving a grant through XXXX XXXX, OH. 

I completed authorization forms for mortgage counselor to communicate with Flagstar on my behalf. She contacted Flagstar and inquired about the process for bringing my mortgage current. She was given the amount of {$5100.00}. No other information was relayed at that time. I uploaded the notification that I received the grant and called to confirm that documentation had been received ( including the amount ). The representative confirmed it had been received and that underwriting would review it. He also stated that I did not need to be concerned about the status of my loan at that time. 

After a few days, I began checking online and have called customer service numerous times to find out the status of the account. I have also attempted to reach my single point of contact, XXXX XXXX ( XXXX ), throughout the entire process. Unfortunately, she is never available so Ive never had an opportunity to speak with her. 

At first I was told the funds had not yet been received. Around XX/XX/XXXX I was told the funds had been received but would need time to process. By mid XXXX, I was told that the funds were there but they were not from the XXXX but from a partial claim which I never applied for. When I explained that the partial claim application was on the table in front of me, the representative became frustrated and told me someone would call me back later in regard to my circumstances. No one called. 

I called again on XX/XX/XXXX because I saw no change online and wanted to make my next mortgage payment before late fees were applied. I was told I had until XXXX XXXX  on XX/XX/XXXX before late fees would be applied. I spoke to 4 different individuals for over two hours attempting to resolve this matter by that time. Unfortunately, no one knew what was wrong or what to do. In fact, the representatives could not even decide what my actual monthly payment was supposed to be because it changed at some point last year. In one of those conversations I was also told that there was some sort of hangup regarding my bankruptcy which was XXXX  in XXXX of XXXX. 

I was finally connected with a gentleman named XXXX who seemed to be a little more knowledgeable. He spoke with a supervisor as well as some other departments then finally asked that I give a call back the following Friday to ensure Flagstar employees had adequate time to update the system. 

I called back the following week only to be verified and asked to explain my situation three more times. I was eventually transferred to XXXX ( XXXX ) who was also helpful but still did not quite understand what was wrong or what to do. He did state that he believed the payment had not applied because the system was not balancing for some reason. He spoke with different people and emailed another department and asked me to call back the following Monday because it would take them a while to respond. I asked if anyone could give me a call back when they found out what was going on and was told that Flagstar representatives do not make call outs because they are so busy. I explained that I did not want to take the time to speak with various people, be verified multiple times or explain my situation over and over again. I was told to ask to speak directly to him. So, when I did call back on Friday, XX/XX/XXXX, I was transferred from one representative to another who would not simply connect me with XXXX but decided she wanted a shot at figuring out this puzzle. This representative was XXXX ( XXXX ). 

I asked XXXX to please read the notes so that she could see what XXXX told me and transfer me. She explained that the notes are in descending order so she would have to read through numerous sets of notes in order to get caught up. So, to help myself remain calm, I simply began explaining the situation, AGAIN ( Im pretty sure this would be the 8th or 9th time ). After some time, she eventually contacted XXXX by messenger or email and he replied that the department he contacted the week before said I needed a Reinstatement Quote. I asked XXXX to explain and she stated that I needed to contact the attorney on record to find out exactly how much I owe to reinstate my loan. I was taken aback as neither my mortgage counselor nor I had been informed about this process when we first contacted Flagstar for the amount needed to bring the account current. When I questioned the representative about this I was told that some representatives wouldnt know that so basically, sorry about my luck. : Additionally, I was told that if the payment were a part of the XXXX program it would have been handled differently but instead the payment was probably treated like some random third party was paying my mortgage so they were not responsible for not properly advising us. I would love to meet the individual paying {$5100.00} to random people behind on their mortgage. Regardless, I feel that if ANYONE calls in from an agency of any kind, the representatives need to provide accurate information. 

I was also confused when XXXX went on to say my home was in the process of foreclosure but I never received any documentation to that effect. The only notification I ever received from an attorney was a collections letter which didnt even have a phone number on it let alone the words foreclosure. I had to XXXX the attorney 's name in order to inquire. The attorney returned my call and before I could say anything, I was told that my account was in loss mitigation so I needed to contact Flagstar not him. I explained this to XXXX. Needless to say, this was all devastating news as one of the main reasons I fell behind on my mortgage was because I had to have a roof installed along with collapsing soffits and damaged fascia and gutters replaced. That is quite an investment into a property that is in the process of being taken away from me. 

On Monday, XX/XX/XXXX, I called the attorney. I received the reinstatement quote in the mail today in the amount {$7300.00} ( valid through XX/XX/XXXX ), which included all kinds of fees and advances that I was not aware of. Today is XX/XX/XXXX. This total amount is supposed to be paid to the attorney even though {$5100.00} has already been paid. Regardless, I dont even have {$2200.00} to pay the balance. So, I contacted my mortgage counselor and she researched options and suggested I attempt to seek assistance for the balance through XXXX tXXXX XXXXXXXX. So, I completed that application today and it is currently in Pending Eligibility Review status. 

I am writing today because, as of last week, my mortgage was in suspended foreclosure status. I want to make sure Flagstar is aware of the problems I have faced attempting to resolve this issue and to inform you that I am waiting for a response from the state mortgage assistance agency. I am assuming there is no one to contact me to confirm receipt of this letter or to advise me in any way. I am extremely disappointed in the way this has been handled and can only hope that someone will read this letter and make an attempt to rectify the situation. 

Regards, XXXX

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