Consumer complaint received 2022-07-28
Company: Flagstar Bank, N.A.
State: FL
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Struggling to pay mortgage

Complaint:
. I applied for Hardship Forbearance in XXXX of XXXX due to temporary loss of income due to the pandemic. I was approved for a modification and made the three required payments to complete the modification. I never received modification documents to notarize from Flagstar. In the meantime, I had also applied for and apparently been approved for state assistance from the Florida XXXX. Also, my mom who is the cosigner on my mortgage was relocating from out of the country, back to the US for medical reasons and was purchasing a home with a mortgage from XXXX XXXX XXXX XXXX. XXXX requested something from Flagstar stating that the modification had been approved and the account was not delinquent. I called multiple times and requested something nobody at Flagstar was able to provide anything. I was told to, go to the website and print something off. This was not sufficient for XXXX to approve my moms mortgage. They said they needed something official from Flagstar or the outstanding balance would have to be brought current. My mom had to cash out her savings that she had set aside for home repairs in order to make this payment but had no choice as she was relocating from out of the country and had to have a home to go to. 
On XX/XX/XXXX, we attempted to make a payment to pay the full amount ( {$12000.00} ) to bring the loan current. We were told only {$10000.00} could be accepted each day. The payment was split to pay {$10000.00} on XX/XX/XXXX and the balance of {$2300.00} on XX/XX/XXXX. At the time of this phone call, I asked why I couldnt get a letter to provide to XXXX. I was told that the modification wasnt finalized yet and they didnt know what the state was doing as far as assistance. They were also unable or unwilling to provide anything stating the payments were made and account was current. The payments showed up on the website transaction history but were held in suspense. I was also told during one of these calls that I had to choose between the modification or the state funds that were received by Flagstar on XX/XX/XXXX ( BEFORE we made the {$12000.00} payment ). I said that I wasnt aware of the state funds at that time but if I had to choose between one or the other, I would prefer the state funds. The person I spoke with at this time said she would follow up and get back to me, personally. I never heard back from her. 
On XX/XX/XXXX, I looked at my account summary and saw that the payments had been applied but as of that date, my XXXX payment was past due. On this same day, I received my XXXX statement in the mail, stating I still owed $ XXXX. I called and spoke with a rep by the name of XXXX and was on the phone for over an hour. XXXX confirmed that the state funds had been received on XX/XX/XXXX but never applied to the account. The modification had been cancelled because I had opted to accept the state assistance. XXXX couldnt confirm why the funds had not been applied but said she didnt want me to hold any longer and she would personally return my call. I received no call back. 
On XX/XX/XXXX, I called and spoked with XXXX in collections where my account now sits. She also confirmed the funds were received XX/XX/XXXX but never applied. She said she was going to reach out to her supervisor and call me back. In the meantime, she asked to take a payment for XXXX because it was going to report as 30 days past due. I declined to make a payment because there was {$15000.00} in state funds with my name on it sitting there as well as 18 future payments for $ XXXX. I never received a call back. 
That evening, I emailed the XXXX and posted a message on Flagstars XXXX page. I received a response from the XXXX post stating someone would reach out to me. I received a call from a customer service rep today, XX/XX/XXXX. She asked me to explain the issue and then transferred me to XXXX in Collections. XXXX looked through my account and could not see where the funds had been applied and changed the date of the receipt of the state funds to XX/XX/XXXX. I had already been told XX/XX/XXXX multiple times. He said it looks like there may have been some confusion because the state funds were received, our payment made and the modification cancelled, all on the same day. 
This still does not resolve the fact that the state sent {$15000.00} to Flagstar BEFORE I made payment or told that I needed to choose the state funds or the modification. Your company held on to the funds without applying them to my account or even notifying me that the funds had been received. As of today, per my account statement, I owe a payment of {$1300.00} ( past due from XXXX and with no modification agreement on which the 3 trial payments were completed ), even though the funds were held in suspense and not applied on my account for OVER a month from the date the state sent $ XXXX ( and an additional 18 future payments ) and a month after we paid $ XXXX. Nobody at your company seems to have any idea what they are doing, and state funds are being mishandled. 
This letter will be forwarded to the CFPB, the Florida XXXX and XXXX XXXX XXXX the firm managing the funds for the Florida XXXX I would appreciate a response and a resolution to this matter. 

Sincerely, XXXX XXXX Account # XXXX XXXX XXXX XXXX XXXX, FL 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