Consumer complaint received 2022-03-08
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Flagstar Bank, N.A. (MI)

On XX/XX/XXXX I contacted my mortgage servicer, Flagstar Bank regarding a uniform borrower assistance form to apply for a loan modification following my COVID hardship. XX/XX/XXXX I received a letter from XXXX XXXX XXXX  stating that they were attempting to collect a debt on behalf of XXXX XXXXe, the owner of my mortgage servicing rights, who sub-contract to Flagstar Bank. The letter is a debt verification letter advising the total amount they showed for the debt and an advisement that I have until XX/XX/XXXX to contact them and challenge the debt. XX/XX/XXXX I received a letter again from XXXX XXXX XXXX. This letter was dated XX/XX/XXXX and it advised that my home was going to foreclosure sale as of XX/XX/XXXX. 

Upon the receipt of the letter I contact XXXX XXXX and asked them what I could do to prevent foreclosure, their advise was to bring the account current or payoff the home. I asked them what amount I needed to pay to bring the account current, and they advised that was information I would need to get from Flagstar Bank. They stated they could request it from Flagstar but it would take 5-10 business days to receive back. The agent advised she could attempt to expedite it and its possible but not promised that I could have a response in 3-5 business days. I then proceeded to contact Flagstar Bank to get this information and was told that because my property was in active foreclosure they could not provide me with this information and that I would need to contact the foreclosure attorney. I advised them that I did and they advised I would need to contact Flagstar Bank. 

I contacted XXXX XXXX again today XX/XX/XXXX to ask them how it is that I have until XX/XX/XXXX to challenge the debt but they have scheduled a foreclosure sale for my home on XX/XX/XXXX, two days prior to the last day I have to challenge the debt. The operators response was that their recommendation is that people don't wait until the 11th hour. I stated that is besides the point, the fact of the matter is that a foreclosure can not take place prior to the date advised that a person has to challenge the debt. The operator said that she would pass my concerns on to an attorney. 

I then advised the operator that their foreclosure letter is also dated by them as being created on XX/XX/XXXX. I advised that this does not provide me with 30 days notice of foreclosure. The operator advised that the first letter they sent ( as they have only sent two ) was my initial notice of foreclosure. I asked the operator where on the debt validation notice it states that was a notice of intent for foreclosure. The operator placed my on hold and then returned stating that she would have an attorney contact me back. It is currently the end of the business day and three hours since that call and I have received no return call, that is likely because their initial letter makes no mention of foreclosure anywhere on it, and is a simple debt validation letter. 

Between their denial to provide me with information on ways to resolve the debt, the fact that these two letters were sent just days apart, the first letter advises that I have until XX/XX/XXXX to challenge the debt, but then they moved forward with pushing a foreclosure sale for XX/XX/XXXX, 2 days prior to the last day I would have to challenge the debt leaves me to conclude that XXXX XXXX is practicing deceptive if not abusive practices. I received a loss mitigation application from Flagstar last night that I had requested on XX/XX/XXXX and am submitting that to Flagstar this evening. It is my hope to resolve this debt with Flagstar through a modification.