Consumer complaint received 2017-10-20
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Flagstar Bank, N.A. (MI)

i am seeking the opportunity to have FHA FIXED, FHA PARTIAL CLAIM on arrears and etc, length of life of loan increased to maximum number of year, to be modified for the amount Flagstar gave me in writing in XX/XX/XXXX balance of $ 84,000+ some odd dollars corrected by XX/XX/XXXX and a appointment with staff in the XXXX Office Per RESPA, this letter is a Notice of Error and I am not sure my account went to a UNDERWRITER and UnderWriter Supervisor even prepared the modification senty todayXX/XX/XXXX but please correct. SINCE BECOMING XXXX AND DOCTORS CALLING MY EMPLOYER AND TAKING ME OFF OF WORK, I requested a FHA Partial Claim for my arrears, ( maybe a HAMP modification to lower interest rate and if nit that is okay but not increased fha, fixed, and to lower total or please REMAIN at {$XXXX} for principal, interest, insurance, taxes, and equity to continue to ensure no shortages as I do n't want to pay 22 % of {$XXXX} at XXXX maybe XXXX to XXXX but I dont want to go that low for that reason plsu my balance is {$XXXX}. 





1. ) I received a Modification Packet XX/XX/XXXX and I noticed that it is not a modification as XXXX XXXX said, '' It will be higher. '' My interest, monthly note and payoff amount and balance are all higher. Prior o modification I owed {$XXXX} some odd dollars at 4 % interest for {$XXXX} a month. DOCTORS called my job after XXXX XXXX and took me off of work which I did not know they had the power to do and XXXX due to my XXXX, XXXX and XXXX XXXX I can not work anymore after working full time since XXXX. This reduced my income from {$XXXX} annually to current since XX/XX/XXXX- present ssd rate benefit credit {$XXXX} a month therefore I asked in writing, " May I please have a FHA Partial Claim on the arrears and my current interest, escrow, taxes, principal, at {$XXXX} remain the same remain the same perhaps a lower interest as the modification despite it being abled to be lowered to {$XXXX} + I would like to keep it at it is FHA FIXED please and I owe $ 84,000+ some odd dollars all in XX/XX/XXXX-XX/XX/XXXX. 
I received a HAMP MODIFICATION mortgage for $ XXXX ( I THINK iT READ {$170.00} ON PRINCIPAL, interest increased and balance increased by {$XXXX} to {$XXXX} some odd dollars and I have not took out a loan. It made me think that someone is able to scam into their system on the computer as I just spoke with FHA and FHA the day prior toXX/XX/XXXX about the definition of the Hamp, Modifications Fha Loan products and how it does NOT mean that the interests and note total are increased and you do have a say so in the assistance that you are requesting if you want a FHA FIXED that is what you may have. " XXXX XXXX '' staff for FLAGSTAR told me the exact opposite and that if I do not ie it they will withdraw and foreclose and that my terms would o up and it will be a adjustable rate you will pay what they tell you. '' Than as they stated that 's is what they gave me in the modification offer.I am really scared of those male staff and for first tine in 9 - 10 years I have had to call corporate to resolve. I called corporate and I asked to speak with this new PRESIDENT OF MORTGAGE THAT I NEVER SAW ON LINE AND THE FLAGSTAR TAPE DID NOT RECOGNISE THE LADIES NAME IN ITS PHONE COMPUTER SYSTEM SO I ASKED THE OPERATOR MAY I PLEASE SPEAK WITH THIS PRESIDENT OF FLAGSTAR MORTGAGE BUT THE OPERATOR SAID, : I do not know who you are talking about but here is the Office of the President Assistant and a man answered and said his name I can provide and will provide when I go show corporate. Also I did not receive the modification and I was told that it was mailed to a out of stated attorney that i hire for bankruptcy which was a lie because another staff stated that hey saw in the computer that it was mailed out once which meant when stated that it was sent and I never received it was because mu assigned d not send. MY assignee said I will just end up foreclosing and it seem other terms being exactly as he and his coworkers foretold when he stayed, '' Listen I got our letter it is not up to you, you pay what they tell you to pay, and you will get adjustable mortgage you do not have a say so. 


I do not think it is a FHA FIXED, 1. ) I was not combative, rude or anything. I asked Can I pay by XXXX XXXX, in the Bank or call back later because Initially I was told I could only pay one contact person? The staff would not let me pay trial payment and kept me on phone 3.5 hours stating You are combative our system down and the only amount payment we can accept from you is for the full delinquent amount not what you said a trial payment. '' I said, " Please ( still crying ) I have not been combative I just said I 'm calling to pay my bill I have only ever asked to pay my bill. You 'll got me behind in first place refusing to let me pay. I Was told i can only pay XXXX XXXX directly who mailed me {$XXXX} bill I asked is this trail and he said YOu left 4 messages at night on why didnt you get a trail payment letter why is the build {$XXXX} and to listen to 4 messages o what should I do within new requested amount why that is taking u my work day and it is harassment you are stalking me ( i just cried silently and said ) so I call to pay my trial payment to others and ignore this  correspondence I just noticed in correspondence THAT IT MADE MY MONTHLY NOTE {$XXXX} MORE THAN IT REALLY IS AND MADE MY BALANCE OWED {$XXXX} HIGHER. ". hE CONTINUED AND IGNORED THESE FACTS. 
ON LAST TRIAL PAYMENT I just asked Please just let me pay. What account will you give when I ask them why everyone else in teh world was able to make a payment bt not me and I was on phone all this time as to the computer being down. I would not think this is Flagstar their is very unprofessional abusive staff that put deliberate error s on my correspondence XXXX XXXX. Hello.. '' They out me on silent holds and hang up, NO you owe and are contracted to pay {$XXXX} we are not accepting trial amount. '' It has honestly been so bad and unlike Flagstar that I believe they should know the awful illegal litigation worthy conduct of XXXX XXXX I am seeking the opportunity to have FHA FIXED, FHA PARTIAL CLAIM on arrears and etc, length of life of loan increased to maximum number of year, to be modified for the amount Flagstar gave me in writing in XX/XX/XXXX balance of $ 84,000+ some odd dollars corrected by XX/XX/XXXX and a appointment with staff in the XXXX Office I called Flagstar Loss Mitigation and the Office of The president a male assistant spoke with me and they all discussed how my mortgage means increase (.? ) It all made no sense so I said I will go there and talk directly because things are not adding up right and was told we do not meet with people and president of office of president and the resident of mortgages does not and what do you mean when you say your loan modification does not match the definition of the loan product and mind you I can not look at the modification your received as it was not uploaded into the computer yet said XXXX XXXX ( hmmm??? he said it has NOT been uploaded IN THE COMPUTER YET for me to view. hmm weird?? IS THIS SOMEONE THAT CAN INTRUDE ON BANK COMPUTER? ) anyways. weLL THIS IS WHAT i WAS REFERRING TO FROM THE DEFINITION FROM THE us DEPARTMENT OF JUSTICE THAT STATES A MODIFICATION MEANS IT IS LOWERED not increase dlike mine {$XXXX}, {$XXXX} and {$XXXX} from US TREASURY : Making Home Affordable Home Affordable Modification Program ( HAMP ) The largest program within MHA is the Home Affordable Modification Program ( HAMP ). HAMPs goal is to offer homeowners who are at risk of foreclosure # # # # # reduced monthly mortgage payments # # # # that are affordable and sustainable over the long-term.
HAMP was designed to help families who are struggling to remain in their homes and show : Documented financial hardship An ability to make their monthly mortgage payments after a modification. 
HAMP is a voluntary program that supports servicers efforts to modify mortgages, while protecting taxpayers interests. To protect taxpayers, MHA housing initiatives have payforsuccess incentives. This means that funds are spent only when transactions are completed and only as long as those contracts remain in place. Therefore, funds will be disbursed over many years. 

Starting in the summer of XX/XX/XXXX, the scope of the program will expand to help even more families in need. 

HAMP works by encouraging participating mortgage servicers to modify mortgages so struggling homeowners can have lower monthly payments and avoid foreclosure. It has specific eligibility requirements for homeowners and includes strict guidelines for servicers. The program includes incentives for homeowners, servicers, and investors to encourage successful mortgage modifications. 

Families in this program typically reduce their monthly payments by a median of more than {$530.00} each month. But the programs impact goes even further. HAMP has also encouraged private lenders to modify mortgages at no expense to taxpayers. 

When the housing crisis began, the mortgage industry was ill-equipped to respond adequately. Mortgage servicers had insufficient resources to address the needs of a market that was reeling from increasing foreclosures. In addition, their servicing expertise and infrastructure was limited to overseeing collections and foreclosing on those who failed to pay. They did not have the systems, staffing, operational capacity, or incentives to engage with homeowners on a large scale and offer meaningful relief from unaffordable mortgages. 

Before HAMP, there was no standard approach among loan servicers or investors about how to help homeowners who wanted to keep making payments, but needed mortgage assistance.
By setting standards for what constitutes a sustainable modification across the mortgage industry, HAMP has helped to make private loan modifications more affordable for homeowners. In fact, thanks in part to HAMP, the proportion of private loan modifications that reduce monthly payments for homeowners has more than doubled. Together, public and private efforts have helped nearly 5 million Americans get mortgage assistance to prevent avoidable foreclosures.
MHA includes comprehensive compliance reviews to ensure that servicers fairly evaluate homeowners for assistance and follow program guidelines. Treasury requires participating servicers to take specific actions to improve their servicing processes to more effectively assist struggling homeowners. While more progress needs to be made, servicers are focusing attention on the areas identified through regular compliance and program reviews.
Note : If you are a homeowner seeking help with your mortgage, please visit Making Home Affordable.