Consumer complaint received 2022-06-12
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Flagstar Bank, N.A. (AZ)

XX/XX/XXXX, we requested a 6 month temporary forbearance from Flagstar Bank on our mortgage due to loss of household income caused by XXXX XXXX. In XX/XX/XXXX with my husband still out of work ( XXXX XXXX ) we requested an additional 6 months and was approved. Around XX/XX/XXXX we contacted Flagstar to inform them we were ready to resume monthly payments. After answering several questions, we were advised that we qualified to add the missed payments to the rear of our loan and we can expect to receive paperwork within XXXX weeks to complete, notarize and return. I specifically asked if we should begin making payments in the interim and was advised, no as it would affect the reinstatement of account. End of XXXX we received a XXXX package at our dock which we took to a local Notary, only to discover the paperwork Flagstar provided has my husbands name noted incorrectly with a middle initial as XXXX ( zero ). The Notary advised, they would not proceed with the current documentation that we would need to request corrected documentation from Flagstar. We immediately called Flagstar as soon as we got home to advise the situation, and was informed that they would have to send out a new document package ASAP but to expect it within XXXX weeks due to they are very backlogged. Again, I asked, should we start making monthly payments as we do not want any surprises. The gentlemen said, no, do not make any payments until the agreement is finalized. Come XXXX, we still had not received the corrected documentation, so another call was made to Flagstar. Again, was told they are extremely backlog and with the holidays, we should expect soon. Now, we have rolled into XX/XX/XXXX and after being on XXXX " relief '' duty, my husband was informed that his position was being relocated out of state, therefore he is officially unemployed. Being we still have not received the corrected documents, I called Flagstar to 1 ) when can we expect the documents, and 2 ) with our recent hardship becoming permanent, can we request to do a modification? The woman I spoke with said yes, but they would need to have someone call me to review our finances to see if we qualify for modification. Another month goes by and called back in XX/XX/XXXX, again being advised that we are still under the original forbearance and someone from the Mitigation dept was going to contact us. ONCE AGAIN, I asked, should we start making monthly payments? She advised, NO because it would then reset the clock and remove us from Forbearance. XXXX XX/XX/XXXX, we finally received a call from XXXXFlagstar asking us to call them back. Thinking YEAH, we are finally going to get this resolved. Boy, were we WRONG. Instead, we were advised that our account went into Pre-Foreclosure and we owe almost $ XXXX to bring the account current. WTH??? Are you serious? I asked them why has no one notified us? You would think something of serious nature, we would expect a certified letter? Calls multiple times a day? NOTHING!!! Not even reported to our credit bureaus until AFTER we found out. You would think they would have reported to the credit bureau on a monthly basis. NOPE, not the case. They did not report it to the credit bureaus till apparently we were in pre-foreclosure and showing 6 months late. If this is not predatory practices, please explain what is. They purposely and deliberately kept us in the dark with no information. After spending all weekend researching both Flagstar and our options, I am appalled that after the previous actions taken against Flagstar for violation of consumers mortgages over the same ill-will practices dated back to XXXX ( XXXX lawsuit ) that they are still allowed to be in business. WHEN IS THE PREDATORY PRACTICES GOING TO END???