Consumer complaint received 2019-08-12
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Flagstar Bank, N.A. (TX)

In XX/XX/XXXX I had life changes that resulted in almost a 50 % reduction in income as well as moving to be closer to my XXXX children. These stemmed from health complications and mounting medical bills. I knew I could no longer afford the home I had paid on faithfully for 12 years so I tried renting it. This lasted until XX/XX/XXXX, when the people I had rented to vanished with no notice. By XX/XX/XXXX I knew I was going to start getting behind so I listed the house for sale and planned on keeping up the mortgage with tax returns at least as long as the listing period. I also contacted Flagstar and informed them of the situation and requested a relief packet. I submitted information to fulfill the packets requirements via the company online tools. All info was submitted in the correct .pdf format and complete by the end of XX/XX/XXXX. During this time I tried enlisting the help of XXXX XXXX as my HUD representatives and I answer all calls from Flagstar. At four months late Flagstar applied a lock mechanism to the front door and would no longer allow the realtor access to show the home. The timing was bad because she had a buyer who was very interested in it. Every time I spoke to a Flagstar representative they assured me that all she had to do was phone in to get a PIN # and they would allow her to show the home. They never would give her a PIN. They said it was because some of they're own departments couldn't view the .pdf files on they're own website and couldn't confirm status of the relief process. They even had me use my last four dollars to FAX everything to different departments multiple times.

During this time I offered multiple times to remit the deed and let Flagstar sell the home and keep all proceeds from the sale as soon as the listing was complete. They told me that Deed Remission would not be an option and they wanted me to complete a short sale of the home. I received a letter saying I had been approved for the short sale process pending the appraisal of the home by companies Flagstar hired in XX/XX/XXXX. All through the month of XX/XX/XXXX the appraisers called me and were informed that Flagstar had the only keys locked in the lockout device on the front door and I gave them what supposedly was the phone number for PIN access. When the appraisers called Flagstar to get the PIN # for the locks they were also denied the number. The assessors told me they would keep all info regarding this because they felt a lawsuit would be coming. Flagstar would not even let they're own appraisers inside to determine proper value. Around this time in XX/XX/XXXX when I would answer calls from Flagstar they would immediately tell me they had connection problems and promptly hang up the phone. This caused me to get a new phone hoping I could talk to them better. By the time I had my phone situation sorted out I received a letter of foreclosure. They stated that lack of communication was the reason the short sale had been cancelled and foreclosure begun. When I called them again they at least didn't hang up on me, but the rep I talked to on that occasion at first tried to convince me that foreclosure was a normal step in a short sale process before he changed his mind and curtly informed me that there was no reversal of course and he would have someone call me back. There was never another call afterward. When I tried to contact XXXX XXXX XXXX, the law firm handling the foreclosure process, I left all information and was told they would call me back. They never tried to return a phone call either.