Consumer complaint received 2022-06-10
Company: Flagstar Bank, N.A.
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
I have been attempting to end my COVID-19 Forbearance plan with my Mortgage company, Flagstar Bank XXXX for over a year. 
I requested a Loss Mitigation Application from Flagstar Bank in XX/XX/XXXX ; and received the application in the mail on XX/XX/XXXX. After completing the application I submitted all the necessary documents and application to Flagstar Bank Via fax on XX/XX/XXXX. I then received notification, Flagstar needed additional documentation. Although these 'additional ' documents were sent with the initial application Flagstar Bank suggested I upload the documents through the online portal to ensure it was not a fax error. 
I submitted all documents through the online portal on the Flagstar Bank website and was finally offered a " Disaster Modification Agreement '' to bring my loan current ; this was dated XX/XX/XXXX. Although I agreed to the terms of this Modification Agreement, I notified Flagstar Bank I there were errors in the legal documents that needed to be corrected prior to my signing, notarizing and fully executing the Modification Agreement. In XXXX, XXXX I received the same Modification Agreement ( with the same terms ) that was suppose to have the errors corrected ; however, there were no corrections made. I again notified Flagstar Bank of the errors and requested the corrected Modification Agreement. Finally, on XX/XX/XXXX @ XXXX XXXX I received the Corrected Modification Agreement. I signed, notarized and mailed back the fully executed documents in the XXXX  packaging slip that Flagstar had provided on XX/XX/XXXX. 
Upon follow-up of the process, it was explained to me there may be shipping delays due to COVID-19 delays that were being experienced in addition to the holiday season. I continued to wait for finalization of the process from Flagstar Bank. 
In XX/XX/XXXX, Flagstar Bank then advised me the XX/XX/XXXX Modification Agreement had been closed and I would have to complete the entire Loss Mitigation Application process again. When Flagstar sent me a new " Loan Modification Agreement '' dated XX/XX/XXXX, the terms were much different and the interest rates were much higher than the initial plan I agreed to in XX/XX/XXXX. Flagstar expressed there was nothing they could do to assist me and could not explain what happen to my XX/XX/XXXX agreement. 
As I was trying to escalate this issue with Flagstar Bank Supervisors, I received in the mail via XXXX on XX/XX/XXXX my copies of the XX/XX/XXXX Modification Agreement which was FULLY EXECUTED, signed and notarized by both myself and Flagstar ; in addition, the cover letter provided with my copy of these documents stated " Enclosed for your records is a copy of the fully executed Modification Agreement and/or Partial Claim Agreement '' and my COVID-19 forbearance was closed out.

Flagstar is now telling me, this XX/XX/XXXX letter and fully executed documents are not valid and I will go into foreclosure if I do not agree to the newly offered Agreement with higher interest rates.

I feel that Flagstar Banks errors have created substantial complication in addition to an increase of financial liability for me.

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