Consumer complaint received 2023-06-25
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: NEW YORK COMMUNITY BANCORP INC (MS)

I was approved for a USDA loan and purchased my current residence in XXXX. I am a single woman living alone, and in XXXX, I had to accept a significant decrease in income due to difficulties finding employment during the height of the COVID pandemic. In XXXX of XXXX I was approved for the COVID-19/disaster forbearance program with Flagstar Bank due to loss/decrease in income. Since I entered the forbearance, I have received misinformation about when I needed to renew, my current status, and documents needed every time I called, and my single point of contact representative has changed at least twice. I was even informed by a supervisor that my call would be used as a training tool because many of the representatives were not well trained on handling the newly implemented COVID forbearance guidelines. In XXXX of XXXX, I was offered a reasonable loan modification where my payment would be lowered and the life of my loan be extended. However, I was just diagnosed with MRSA/Impetigo and could not maintain employment until I was cleared by my physician per CDC guidelines XXXX A representative with Flagstar advised me not to accept the proposed modification, apply for a hardship forbearance, and when I was cleared to work, reapply for the loss mitigation program. I was never made aware that the requirements for a modification under the hardship forbearance would be different than the COVID forbearance modification requirements. I have been told since XXXX that Flagstar Bank would continue to send statements and delinquency notices but not to be alarmed because I was protected under the forbearance. I have been in contact with Flagstar Bank by phone monthly to verify changes or updates but no one informed me of any missed payments. In XXXX of XXXX, I was cleared to work, secured employment, and submitted the appropriate documents necessary to complete my new loss mitigation application. I received my modification notice XX/XX/XXXX stating that I was denied all modification options for the following reasons : I was receiving continuous income, my hardship was long term, I was unable to cure the delinquency within 6 months, my debt to income ratio was over 55 %, and the proposed payment would be greater than the target payment. After calling every day for 3 days during lunch, after work, and requesting a call back, I was finally able to speak with a representative at lunch on XXXX. She informed me that my house was already in foreclosure, I was delinquent on my payments, and that I had to pay {$22000.00} to bring my account current. She explained that the underwriters use " a waterfall '' technique to see which option would make me most successful in keeping my home, and none of the proposed modifications would be applicable to my situation. I asked multiple times for her to explain why I was denied when I was just approved in XXXX, but she would only respond with " Please fill out the appeal. '' When I told her that I didn't understand how to complete the appeal due to not understanding why I was denied in the first place, she would repeat the same thing. I told her that I have been in contact with Flagstar Bank, even with my single point of contact, on multiple occasions, but no one informed me that I was supposed to begin making payments or that my home was in foreclosure. Her response was, " I apologize you have received miscommunication from our staff, but that doesn't change the outcome of the decision. '' I explained that I didn't understand how paying {$22000.00} would be the most successful option, but her response was again to fill out the appeal. I asked her to provide me the recordings from all of my phone conversations with Flagstar, but she said that only Flagstar representatives have access to that information. I asked her to provide me with the date that forbearance expired and when I was supposed to begin making payments, but again she just referred me back to the appeal form. When I asked to speak to a supervisor, she stated that I was speaking to one. When I asked to speak to her supervisor, she again referred me to the appeal form. After work, I tried calling again at XXXX XXXX  ( the modification statement says their hours are M-F from XXXX - XXXX XXXX  but my loan statement says XXXX - XXXX XXXX  and the phone numbers are the same ), but the automated system said their office was closed. I logged into my online account and tried to download the past documents to use as evidence for the appeal showing when I was offered the original modification and the date of my hardship forbearance, but when I clicked on download, I only received an error message ( which I have attached ). After reviewing my online statements ( which I have attached ), I noticed they have been changing the wording and removing me from my forbearance status even though I was being told that while I was getting the documents together/renewing I would be protected ( even the automated recording says the same before you speak with a representative ) The changes are as follows : XX/XX/XXXX ( not in forbearance ), XX/XX/XXXX ( loss mitigation option ), XXXX ( Disaster Forbearance Plan Option ), XXXX ( not in forbearance ), XXXX ( Disaster Forbearance Plan Option ), XX/XX/XXXX ( USDA Pandemic MRA Option ), XX/XX/XXXX ( Disaster Forbearance Plan Option ), XX/XX/XXXX ( Loss Mitigation Option ), XX/XX/XXXX ( No Forbearance ), XXXX ( Disaster Forbearance Plan Option ), XX/XX/XXXX ( Loss Mitigation Option ), XXXX ( No Forbearance ), XXXX ( Home has been referred to foreclosure ). None of the missed payments have been reported to the credit bureau ( or XXXX XXXX since I check it regularly ), so I had no idea I had missed payments or was delinquent. My statements have said delinquency since I entered the forbearance in XX/XX/XXXX. I do plan on filing the appeal. Upon XXXX Flagstar XXXX Foreclosure, I found numerous posts by others that are in a similar situation due miscommunication from Flagstar.