Consumer complaint received 2016-06-28
Company: Flagstar Bank, N.A.
State: NV
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
During the illness and subsequent death of a loved one, we got behind on our mortgage loan. We spoke with the bank nearly every week. When we were three months behind, Flagstar Bank told us to make two months payment to help show good faith and get caught up. We mailed two months payment in and nearly a month later, we received the money back with a letter that stated, our home was in foreclosure. They gave us a number to " who Flagstar called their lawyer '' a told us, we had to contact him. We later found out, it was a collection agency named XXXX XXXX XXXX. After telling " their attorney '' we wanted to pay the mortgage arrears, we were told to give him a few days to contact the bank and he would get back to us. Instead, the following day, a Notice of Default was filed on our property. We called XXXX XXXX XXXX back and got no response for more than a week. Flagstar refused to speak with us or offer us any resolution. Fast forwarding, we applied with the mediation program here in Nevada. We were scheduled for mediation some months later. We continued to try to get help from Flagstar, but were stonewalled. We spoke with a representative in their legal department named XXXX XXXX, who told us to tell the program we did n't want to do mediation and then Flagstar would work with us. He also told us, Flagstar would not be at the mediation. Flagstar did not show up at mediation. We have filed Judicial Reviews, Nevada Supreme Court actions and are still unable to get Flagstar to consider a loan modification ( although approval has been approve through a HUD/FHA Counselor ( s ). They refused to discuss the matter with the counselor or us. We have had XXXX additional mediation 's since then. Both times Flagstar refused to consider a loan modification and acted in " bad faith ''. In court hearings they have lied, misled the court and provided fraudulent documents and inflated the amounts of our mortgage and the amount of monies owed. They have used Trustee ( s ) that are not licensed in this state and rescinded the Notice of Default numerous times. During this past mediation in XX/XX/XXXX, Flagstar demanded documents that we so ambiguous and arbitrary, that it was not possible to provide immediately. They also demanded we provide the credit information, release of protected information, bank records and tax release information of our parents ( who are not a party to this loan, but live in the house ), under the pretense of possible consideration of a loan modification. Flagstar required I open a bank account. I, XXXX, am self employed. I pay my taxes and the IRS said I am not required to have a bank account, but because Flagstar said I had to open one, I did. Flagstar by and through their affiliate XXXX XXXX XXXX has deceived the District Court here, and made a mockery of our states mediation process. XXXX XXXX XXXX is the Beneficiary of Trust and the current attorney ( s ) of record is XXXX and XXXX which is essentially the same company ( even though, the attorney is not supposed to have any vested interest in our home ). In XX/XX/XXXX, Flagstar agreed to a repayment plan ( in order to deceive us and the courts ) with us, yet they failed to provide any paperwork, answer our calls, respond to our emails, or provide any method for us to make our payments. They have changes attorney ( XXXX ), beneficiaries and their underhanded tactics numerous times. The only option we we offered from Flagstar was in XX/XX/XXXX at the end of another failed mediation. Flagstar 's attorney XXXX XXXX, offered what he called " cash for keys ''. We were offered {$2500.00}. to give them our home. No other offers were made to help us save our home. XX/XX/XXXX, someone from Flagstar named XXXX called and said Flagstar had not received any paperwork for us since XX/XX/XXXX. We were shocked! We are devastated and need your help.

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