Consumer complaint received 2015-12-03
Company: Flagstar Bank, N.A.
State: GA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
My home was foreclosed. The particulars include 42 months of negotiation with the lender to no avail, including filing bankruptcy twice, once a chapter XXXX, then again a chapter XXXX, each with a stay of foreclosure provision. Each time asking for a " workout '' to restore the loan status to 'current '. I filled out documents many times forwarding personal and private financial information to the lender / servicing entity. During this process I received several inquiries and solicitations from third party law firms suggesting they would take up my cause and would help in getting a remedy, ie refinance, short sale, deed in liu, loss mitigation, etc. one of the options put forward was the real possibility of something called a motion for quiet title, which would qualify because my note and title were separated twice rendering the mortgage invalid, that is it ( the mortgage went to XXXX twice. One of these firms indicated my case would be a slam dunk because of twice going to XXXX and because I am a military veteran, and I have an XXXX child living with me. At one point the lender offered a trial loss mitigation with all the provisions spelled out. I fulfilled all requirements in a timely manner then called lender to ask whats next? The response was, " just keep sending payments ". I said, " I will do that when I receive a statement showing how those funds were applied. The lender was unresponsive, so I stopped additional payments. When I called after another month, I asked out of frustration, what about a short sale. They explained how a short sale worked and then after another month told me I did n't qualify for said short sale according to FHA rules. I asked for any other provision and they said they would mail me something. After another month I received a slick shiny packet, first item was a marketing piece about a short sale, and a second piece about a deed in liu. As notification of foreclosure sale time and date approached I signed a listing agreement with a realtor who assured me a short sale could work if he could get a contract signed, which he did. XXXX XXXX XXXX ruled the form submitted was the wrong one even though it was on the lending companies letter-head. That letter included an acceptable form which required a notory. Even though this requirement was was announced one day before sale date, said notory was obtained and the form was forwarded to the lender. No response. On the sale date I called the lenders atty, stating the obvious, they said all they needed was a call or fax from lender to reschedule the sale. I then called the lender to convey verbally the message from their own atty 's, the single point of contact put me on hold and after indeterminate amount of time, and returned to the call saying, " thank you for your patience, but the home was sold at auction ''. This occurred on XXXX XXXX 2015. To date ( XXXX XXXX, 2015 ) I have not received confirmation of such a sale. I think something is a miss.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation