Consumer complaint received 2016-03-20
Product: Mortgage — FHA mortgage
Issue: Credit decision / Underwriting — 
Company: Flagstar Bank, N.A. (AZ)

Flagstar Bank has taken so long to fulfill each step of the process in my short sale, that I have been in short sale for more than 15 months, have lost XXXX buyers ( the last buyer in XXXX XXXX ) after Flagstar refused to respond to my Short Sale Team at XXXX XXXX XXXX. Arizona for mroe than FOUR months. I have now been sued by my HOAs attorneys and have received a letter of intent to wage garnish, while I struggle to keep the electricity on, deal with medical testing, and to keep up a house I can not sell because of Flagstar 's Negligence. Also, XX/XX/XXXX, before I put my house up for sale, Flagstar REFUSED through the loss of my paperwork three times, to allow me to obtain a Workout for my mortgage, so I applied for HUD assistance and obtained it. However, I failed to be able to regain my footing in the job market fast enough, had to work odd jobs etc. and finally took a job paying XXXX % of what I made when I bought my home in XX/XX/XXXX. I came out of the HUD program in XXXX XXXX when I put my house on the market and sold it XXXX times, each time losing the buyer because of Flagstar Bank, despite my having XXXX Real Estate advocates who have a phenomenal track record in processing short sales here in XXXX Arizona. I did not find out about CFPBs action against Flagstar XX/XX/XXXX until this week, but it seems I fall into this category of consumers, as well. I am now being threatened with wag garnishment because the XXXX Lien Holder 's ( my HOA ) attorney is no longer honoring the agreement they signed to receive their payment at the closing of my house. Of course, if Flagstar Bank continues to force me out of short sale, there is no way my HOA can get their money owed. I also lost my Hazard insurance DURING the short sale because Flagstar, who pays the insurance out of my mortgage illegally informed my insurance company ( XXXX Underwriters who are contracted by XXXX ) that my home was in short sale. XXXX INVENTED a problem with my paperwork, lost said paperwork for a claim filed more than 2 years previously with my roof damage, and claimed I never sent them paperwork and photos, even though they approved the claim and paid me ( and then they later RENEWED my insurance without a problem -- why would they renew my insurance again if there was a problem 2 years before? ) So the this required Flagstar Bank to buy insurance they claim cost them {$3000.00} per year to cover my house during the short sale, which is added onto the closing costs, thereby reducing the HOAs and HUDs cuts further. Add to this Flagstar Bank 's refusal to cooperate with my Real Estate Team and processors, and you have the consumer taking the brunt of the Bank 's negligence after 15 months of short sale. I have no money for a lawyer at this point and wage garnishment will mean not being able to keep my utilities on. I live in a rural area and am barely able to afford to keep my XXXX year old vehicle on the road. Please assist me and let me know what I can do to stop the actions against me resulting from Flagstar Bank 's refusal to work with my Real Estate Team during the last XXXX offers on my house. Thank you.