Consumer complaint received 2022-03-25
Company: Flagstar Bank, N.A.
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
In XXXX I informed the mortgage company, Flagstar bank, that the other borrower on the loan was no longer around, could not be found, abandoned his family. Later in XXXX I informed the mortgage company that I lost my job. The mortgage company told me about the covid relief option. I reminded them that the other borrower was not around. They told me that was not a problem so I signed up for the covid relief option. Once my covid relief plan expired I was informed that I needed the other borrowers signature along with my signature to process the paperwork to modify my payments. I reminded them that through this whole thing I have reminded them that the other borrower is no where to be found. I can not get his signature. The mortgage company said it was a simple fix, just do a quit claims deed. I contacted my father to help me with this. My father looked into it right away and informed me that in ordered to obtain a quit claims deed I need the other borrowers signature. I called the mortgage company back and informed them that obtaining a quit claims deed is impossible because the other borrower cant be found to get his signature. I was transferred to a supervisor. The supervisor informed me that I need to submit the divorce papers that I have started, and in the divorce paperwork they wanted to see that it states the other borrower is is no where to be found. I submitted that paperwork and called the mortgage company back. They told me to call once a week to show I am trying to fix this. Every time I would call the mortgage company back checking on the status of the paperwork I submitted, I would get different answer. ( The paperwork was not submitted resend it, this paperwork isnt enough, the supervisor you spoke to wasnt right about what she told you, you need to send in more paperwork ). After calling repeatedly asking for the supervisor I had spoke to with no avail, a different supervisor called me back and told me that on top of the paper work I have already submitted I need to send in a statement in my own words on my situation, what happened and why I need the underwriters to take the other borrowers name off the loan. I submitted that online. Then continued to call to check on the status of the paperwork. But again I kept getting different representatives telling me different things again. One representative told me I just need to sell my house because I cant get the other borrower to sign the paperwork the mortgage company needed. I informed her that I couldnt sell the house with out his signature so that also wasnt an option. The representative informed me that I need to contact a housing councilor. I tried 5 different housing counselors that the mortgage company representative gave me the phone numbers for. Two of those five answer the phone and told me they would call me back but never did ( and I called them back several times with no answer ). Three of the five I left messages for but no one called me back. Now I just received paperwork from the mortgage company for loan modification but it still has both borrowers names on it. I called the mortgage company and explained to the representative from start to finish everything that has gone on from XXXX to now with everyone I talked to and the paperwork I submitted. All they could tell me is get the paperwork signed and notarized. I again informed the representative that I can not get the other borrowers signature, he left and cant be found. The representative told me to go online and submit a loss mitigation application. Once off the phone I read over the loss mitigation application and that too needs the other borrowers signature. So I called the mortgage company back and explained the whole thing to the representative again and then told him that the loss mitigation application requires the signature of the other borrower. He then informed me that I need to submit it anyways with a written statement explaining my situation so the underwriters can review it and make a decision. I told him that I have written and submitted everything that was requested of me so the underwriters could make a decision in XX/XX/XXXX. The representative told me that if I received the packet that was the underwriters decision. I said I dont understand, I did want the loan modification but in order to do that I can not provide the other borrowers signature. The representative said there is nothing we can do with out a quit claims deed or a divorce decree. I told the representative I had hired someone to do my divorce paperwork and we are just waiting on the judge which I was told could take up to three months. The representative told me again then submit another loss mitigation application because there is nothing more we can do for you.

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