Consumer complaint received 2018-05-18 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: Flagstar Bank, N.A.
State: GA

Complaint narrative:
Regarding Flagstar Bank and XXXX XXXX XXXX  - as of XX/XX/XXXX In XX/XX/XXXX, our area was hit by XXXX XXXX. Although our property sustained no damage, we were forced to relocate for approximately one week and incurred unexpected expenses with travel, lodging, food, etc. We missed work during this time and returned to find all our perishable food had been ruined due to power outages. Knowing we would be late on our mortgage payment by about two weeks, I called and the loss mitigation department at XXXX XXXX XXXX ( the company Flagstar obtained our mortgage from ) who told me that due to the hurricane, we would be allowed to skip three payments without penalty. We did so and resumed our regular mortgage payments of {$1300.00} in XX/XX/XXXX. During that time we provided documentation for loss mitigation as asked. XXXX XXXX repeatedly misplaced bank statements and other information we sent in causing our loss mitigation process to drag on for months. I had to continually keep re-sending documents and sending in new information after they would inexplicably lose what I sent in. XXXX XXXX finally approved us for loss mitigation and we were to begin paying our mortgage amount of {$1300.00}. In XX/XX/XXXX, we were again hit by Hurricane Irma in our area and this caused my husband to miss work hours and we again incurred expenses from loss of food and housing costs as we had to relocate for a week. We again applied for loss mitigation and were told since this area was once again declared a disaster area by FEMA that we would automatically get a three month reprieve from our mortgage payments and could resume them with NO ADDITIONAL LOSS MITIGATION forms necessary. In XX/XX/XXXX, I attempted to resume payments once again and was told by XXXX XXXX to apply for another loss mitigation package. I immediately began to do so, only to find they sold my mortgage to Flagstar Bank. I called Flagstar before they even contacted me to see how to begin paying my mortgage and was told that the company did not know my mortgage amount and when they received my package from the previous mortgage company, that they would likely honor my loss mitigation amount of {$1300.00} and I could resume payments. I checked in often and waited for paperwork to arrive and even contacted XXXX XXXX to try to expedite the process. Once the paperwork arrived from XXXX XXXX to Flagstar, Flagstar had me re-apply for loss mitigation and would not honor the mortgage amount I had been approved to pay. Flagstar begin to lose documents, forcing me to re-send information and causing a delay. On XX/XX/XXXX, I received a letter stating that my loss mitigation had been denied and foreclosure would be forthcoming. The letter was dated XX/XX/XXXX, but arrived XX/XX/XXXX and stated that any appeal must be made by XX/XX/XXXX. 

My credit has been affected by both companies ' incompetence, and now I am facing the potential loss of my home due to their mistakes.

Because of these circumstances I am unable to pay the missed payments that have accrued, but I am able to begin paying my mortgage amount of {$1300.00} immediately. I ask for any assistance you can offer, as I want to continue paying my mortgage and do not want to foreclose on my house.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation