Consumer complaint received 2015-10-12
Product: Mortgage — Conventional fixed mortgage
Issue: Settlement process and costs — 
Company: Flagstar Bank, N.A. (FL)

Flagstar Bank ( FSB ) holds our mortgage. We reported a sinkhole in XXXX, XXXX. XXXX XXXX Insurance investigated and permitted repairs to take place. XXXX ( XXXX ) performed the job. Citizens sent third party checks for XXXX 's ground work and one also for cosmetic repairs to FSB. FSB refused to release the funds to XXXX, even after the work was completed ; consequently, LRE place a lien on our property XXXX XXXX, XXXX. XXXX withheld payment on XXXX 's completed work until XXXX XXXX, XXXX, and they still hold our cosmetic repair monies to this date in escrow. We wanted to and could have sold our home during the time XXXX had placed the lien on our property but legally we could n't put the house on the market. The house went over and under, and before I stopped making mortgage payments, I tried twice to work with FSB to modify the loan, beginning XXXX XXXX. FSB changed the point of contact twice and would not return my phone calls until I missed my first payment, which was due in part because FSB would n't pay XXXX or release our funds from escrow and also because my wife 's job was eliminated and she was unemployed. During the next two and a half years, I requested no fewer than XXXX times for loss mitigation assistance, and each time the point of contact was changed and I was asked to resubmit the paperwork each time. We retained an attorney and the attorneys for FSB, after ignoring our attorney for months, finally scheduled XXXX different mediation meetings, and they sent different representatives to each meeting who knew nothing about our case file and they were n't given any authority to make decisions at the mediations, costing us thousands in attorney fees. Also, after each mediation, FSB sent me the paperwork to request for loss mitigation assistance. XXXX XXXX, XXXX, we met FSB 's attorneys at the XXXX Courthouse in XXXX County Florida. For personal medical reasons, we rented a larger home to move my mother in with us so we could care for her. We asked our attorney to tell the FSB representatives that we would stop fighting and allow for them to submit the Final Judgment of Foreclosure to the judge, provided that they would release our funds they have kept from us since the sinkhole repairs were completed. They agreed and even said they would waive the deficiency. The property was to be sold XXXX XXXX, XXXX, according to the court documents, but as of today, FSB still holds the mortgage and has done nothing with the house. I received a letter last Friday from CFPB explaining the investigation of Flagstar Bank and had found that FSB mishandled borrowers ' requests for loss mitigation assistance, in violation of federal law ( I received a settlement check ), so it occurred to me much of the above complaint also needs to be investigated. We would like for Flagstar Bank to sell the house or do whatever they need to do to release our escrow money to us, because that is not their money. We were never able to make repairs because FSB wanted us to pay for the repairs out of our own pockets and send receipts for them to release our insurance money. We did n't have the money, FSB was holding our insurance money, and we saw how FSB treated XXXX, so we knew they were n't going to treat us fairly. I even requested they use the insurance money to catch up the loan, and they said they could n't do that.