Consumer complaint received 2021-06-16
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Flagstar Bank, N.A. (PA)

I experienced a financial hardship in late XXXX through early XXXX, and I contacted my mortgage servicer, XXXX, to arrange for a modification for my loan. I submitted a hardship letter in XX/XX/XXXX along with the Uniform  Borrower Assistance Form. 

I received a letter on XX/XX/XXXX that was dated XX/XX/XXXX, informing me that I was approved for a foreclosure prevention alternative, specifically the FHA Home Affordable Modification. Along with the notice, I received information on the trial period plan. I signed and returned the Trial Period Plan Agreement and made the trial period payments as specified. 

I received a letter, dated XX/XX/XXXX, confirming that XXXX had received my final trial plan payment, and that I had successfully completed the trial plan period. I also received a letter, dated XX/XX/XXXX, finding me eligible for a permanent loan modification. The letter stated that the documents needed to be returned to XXXX by XX/XX/XXXX. I signed the documents in the presence of a notary on XX/XX/XXXX and returned them to XXXX  by XXXX  to ensure they arrived by the required date. Additionally, the HUD partial claim I returned with these documents was signed by XXXX XXXX of the Secretary of Housing and Urban Developmenton XX/XX/XXXX and recorded on XX/XX/XXXX ( Document ID : XXXX ). 

My modified monthly payment was {$900.00}. I continued making payments under the permanent modification without issue until early XXXX. 

I received two letters from XXXX in XXXX XXXXnearly five months after submitting the modification documentsdated XX/XX/XXXX and XX/XX/XXXX, stating that the modification was being denied because they did not receive the necessary documents. This, despite one of the documents they received being publicly recorded. 

I received three statements from XXXX in XX/XX/XXXX. These statements showed various amounts due, and incorrectly reflected a monthly payment of {$1100.00}. The XX/XX/XXXX notice showed {$12000.00} due ; XX/XX/XXXX showed {$11000.00} due ; and XX/XX/XXXX showed {$8200.00} due. 

On XX/XX/XXXX and XX/XX/XXXX, I received checks from XXXX for $ XXXXmy modified monthly paymentwith letters stating that the checks were for misapplication reversal. I continued making monthly payments for {$900.00}, as provided in the modified loan agreement. 

I received a letter dated XX/XX/XXXX, informing me that effective XX/XX/XXXX, servicing of my loan was being transferred from XXXX to Flagstar Bank. I subsequently received an Annual Escrow Account Disclosure Statement from XXXX, dated XX/XX/XXXX, which listed my present loan payment as {$1100.00}. It further noted that the surplus in my escrow account was being retained by XXXX  due to a delinquency. However, with the loan modification in XX/XX/XXXX, my loan was brought current, and I had made all monthly payments due since that time. 

I received a Notice of Default and Intent to Accelerate from Flagstar dated XX/XX/XXXX and an Act 6 Notice of Default and Intention to Foreclose from Flagstar dated XX/XX/XXXX. I also received a notice from Flagstar, dated XX/XX/XXXX, stating that my loss mitigation application was incomplete.