Consumer complaint received 2022-08-24
Company: Flagstar Bank, N.A.
State: OK
Product: Mortgage
Sub-product: VA mortgage
Issue: Struggling to pay mortgage

Complaint:
We filed XXXX bankruptcy on XX/XX/XXXX, and immeadiately went into a Covid forbearance with Flagstar Bank under the XXXX XXXX. We were current on our mortgage at the time of filing XXXX. 

Our forbearance ended XX/XX/XXXX. During this process, we tried for months to find out our options provided to get our mortgage current. We were never given any options. 

On XX/XX/XXXX, we received a XXXX package with tracking number XXXX that included a VA XXXX XXXX. The claim was dated XX/XX/XXXX and informed us the first payment was due XX/XX/XXXX, 14 days before we received the paperwork. We signed the paper work, notarized and mailed back in the XXXX envelope provided by Flagstar on XX/XX/XXXX under tracking number XXXX. The envelope was received XX/XX/XXXX by XXXX XXXX in XXXX XXXX, CA. 

We called to try and make a payment and they stated that the Partial Claim had not been processed and to call back in one week. We did this multiple times over the course of months. 

On XX/XX/XXXX, we were informed our Partial Claim was incomplete and we never sent in the paperwork and our only option was to apply for Loan Modification. They told us they would send out the paperwork within 14 business days. We never received the paperwork. 

On XX/XX/XXXX, we received a letter stating we were delinquent and included a XXXXoan Modification application. We filled out the forms and sent in the required documents. We never heard from Flagstar regarding mistakes or incomplete forms and they filed for Foreclosure on XX/XX/XXXX. 

On XX/XX/XXXX, we called Flagstar, AGAIN, to find out why the Loan Modification was taking so long. They stated that one of the forms had not been filled out properly and now the loan was in the foreclosure process. NO ONE from Flagstar informed us of this error and they allowed the loan to go to an attorney. 

On XX/XX/XXXX, we uploaded the corrected document and were told it would take 8 business days to be received and 30 days to hear if the Loan Modification would be approved. 

On XX/XX/XXXX, we received a letter, dated XX/XX/XXXX, that our Loan Modification was denied due to insufficient income. It did not give number or reasoning beyond " you can't afford it ''. 

On XX/XX/XXXX, we called Flagstar to get better insight into why we were denied. The woman on the phone just stated " the investor said no ''. When I asked what the new payment would have been she stated " I don't have that information. '' Not once was I offered XXXX to evaluate if the correct income had been used. I then asked about the VA Partial Claim that had been mailed on XX/XX/XXXX and received XX/XX/XXXX... She stated " we never received it '', when I listed the tracking number and that it had been signed for, she put me on hold, came back a few mintues later and told me the " notary messed up '' and the VA Partial Claim was no longer available to me. When I asked why no one contacted us to inform us of the mistake she stated, " well, sometimes they just don't call you ''. This is completely unacceptable!!!! 

It appears that Flagstar is back to their usual tricks from which they were fined and sued for in XXXX. No notification, Long processing times to receive and process modifications, lies about what is available to consumers and dragging out the time in order to file foreclosure. We are not allowed to make a payment as " it is already in foreclosure ''. 

On XX/XX/XXXX, I contacted the VA Loan Guarantee program to find out my options with hope they would intervene. The VA informed me that since they are stating the VA Partial Claim was " incomplete '' that it should still be offered to me. I called Flagstar to inform them that this was my right under the VA backed loan, they stated that the VA needed to call Flagstar and reapprove me. The VA said this is not true and that Flagstar, at anytime, can ask for approval and it will be rubberstamped by the XXXX Now, I am days away from a Sheriff 's Sale date notification with a date of first delinquency being XX/XX/XXXX, 14 days BEFORE we received the Partial Claim paperwork. The " processing '' times have caused us to be over 120 days late as we are not allowed to make a payment to Flagstar because of their " processing rules ''. 

On XX/XX/XXXX, I called to see if the VA had given approval, the woman on the phone stated that it will take " awhile '' for that to be received. I then said that I don't have awhile and the home is in the early stages of foreclosure. She said " there's nothing I can do for you ''. 


We are desperate to begin making payments and save our home. No one will help us. It feels like they are taking so long just to be able to foreclose and are not giving us ANY options or at least expediting the process. Flagstar has violated multiple laws by avoiding giving us any information or options to prevent the foreclosure of our home. Our next step, if this does not resolve the matter, will be hiring an attorney and bringing suit to Flagstar under multiple violations of the law.

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