Consumer complaint received 2022-07-06 00:00:00
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: Flagstar Bank, N.A.
State: NC

Complaint narrative:
To Whom It May Concern, XXXX I am writing this letter to notify Flagstar that I will be filing as many complaints as humanly possible against your company. I am beyond disgusted with how I have been treated and how my account has been mishandled since being with your company. I have been lied to, tossed around, misinformed, told one thing and then told the completely opposite, been passed off from one to another times 100, been told I would receive calls back never did, been told my account would be put into escalations and weeks later, told I had to start back at square one. I am now experiencing XXXX, XXXX XXXX XXXXXXXX XXXX XXXX, and an immense amount of stress due to the actions of Flagstar and its representatives. 

In XXXX of XXXX, my loan came out of mortgage forbearance after being impacted by Covid-19. I was a business owner of XXXX XXXX XXXX XXXX. My business ended up shutting down completely due to being considered a non-essential company in the beginning stages of the pandemic. By the time things began to reopen, I had lost more capital than I expected and was not able to re-open. I suffered a great financial loss which was long term for a long time. Hence, going into forbearance. 
The entire time I was in forbearance, I was told that I had several options to recover and come current once the forbearance ended. There are dozens of recorded calls between myself and Flagstar that verify I was told these options between XX/XX/XXXX and XX/XX/XXXX. 

1. ) Pay the past due amount in full 2. ) Go on a payment plan to repay 3. ) Put the past due amount at the end of my loan and resume making payments. 

When XX/XX/XXXX came, I was told that Option 3 was no longer an option for me because of had a USDA loan. This was NEVER told to me the entire time I was in forbearance. Instead, I was consistently told by dozens of Flagstar representatives that this was an option. I clearly went into panic mode immediately when it was suddenly off the table. I was then told that the only other option was to apply for a modification, or to seek out assistance from state and government programs. I did both. 

In XXXX of XXXX, I applied for assistance through the North Carolina Homeowners Assistance Fund. At that time, the fund was just accepting applications because there was not technically any funds to be disbursed yet. My application ID for the Fund is : XXXX. I was one of the first applicants to apply because I did it so early. 
At the same time, I applied for a mortgage modification through Flagstar. My modification application was denied. I was told to reapply by filling out another modification application. I did. I was denied. I was told to continue to reapply for the modification as it would keep my account in a protected status. I applied again for a modification. It too, was denied. I applied again. 

XX/XX/XXXX, my application for the North Carolina Homeowners Assistant Fund was accepted and I began going through the process on that end. Because I was one of the first people to apply, I was told that I would be a part of the first disbursements from the fund, whenever that may be. Between XXXX and XXXX, XXXX, I was working with the NCHAF as well as having submitted another loan modification application through Flagstar. I was told on several occasions, and on recorded lines, that this was exactly what I should be doing. Working both sides in hopes for the greater outcome being a recipient of the XXXX. There are countless phone calls I made to Flagstar weekly, sometimes daily, just to assure I was keeping everything in order, and everyone connected. 

In late XXXX, I received documents from Flagstar with an approved modification offer. At the exact same time, the XXXX began communication with Flagstar showing that an initial amount of {$35000.00} was going to be awarded in my favor to go towards my past due forbearance balance with Flagstar. XXXX  works in mysterious ways and these two efforts aligned simultaneously but did not overlap. One came BEFORE THE OTHER. 

On XX/XX/XXXX at XXXX XXXX, I called in and spoke with XXXX, XXXX # XXXX. I called because I realized that I had not returned the signed modification paperwork through XXXX, but instead put it in the wrong mail drop box. I sent the paperwork through snail mail which in hindsight, was a XXXX thing. It was during this call that I was told for the first time about the XXXX XXXX showing in my account notes. It was during this phone call that I was told that because the funds were coming through, I needed to verify that I wanted to receive the funds and to void/decline the modification. I was told on this phone call that because the paperwork hadnt been received yet, and there wasnt even a traceable tracking number on the package, that Flagstar would accept the XXXX  and deny the modification. I verified that I wanted the modification paperwork voided out very clearly and that I would be moving forward with accepting the XXXX. I was told that my account had been updated accordingly and that even though the funds are coming, it took time for everything to get worked out on Flagstars side. I was told to sit tight, wait, and just keep calling back and checking in. I did.

Below is my record of calls I made to Flagstar from XX/XX/XXXX to current. All these calls have been recorded according to Flagstar. I have a record of all calls made to Flagstar between XX/XX/XXXX through XX/XX/XXXX as well. 

XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX XX/XX/XXXX XXXX to XXXX Since XX/XX/XXXX, I have been told all of the following, and then some, by Flagstar representatives on recorded lines : Youre fine. Youve done everything right. We have you receiving the XXXX  and denying the modification. 

Yes, there is {$35000.00}. Just waiting on final approvals which takes time. Yes, you got the funds! Congratulations! XXXX is Good. 

Yes, I see the XXXX noted in your account, and you are enrolled in the XXXX. Everything looks good. Be patient and call back next week. 

Yes, the funds are there, it just takes time for everything to be allocated. Please be patient and call back next week. 

The modification has been denied because you have accepted to receive the XXXX. 

Yes, everything looks perfect. Ive worked several accounts where these funds have come through and it just takes time. Be patient and just call back next week. 

Yes, I see the funds, we are just waiting for the state to approve them. It takes time. Just call back in a week. 

It takes time for everything to process, but yes, everything looks good and we see the funds from NCHAF. Please call and check back in a week. 

ALL OF THIS TO THIS We dont have any funds from the NCHAF. 

You will have to start over from scratch because you denied the modification, and you will have to reapply for the XXXX. ( XXXX allegedly a manager in escalations, told this to me on XX/XX/XXXX ) His literal words to me were I hope youre sitting down dont shoot the messenger. '' XX/XX/XXXX Conference call with representative from the North Carolina Homeowners Assistance Fund and XXXX, with Flagstar, XXXX XXXX. XXXX was given the wire tracking number there the funds had been sent from the XXXX on XX/XX/XXXX to my account at Flagstar. XXXX could not verify where the funds were and did not see any funds in my account despite previous calls stating they saw the funds and we also had a wire transfer number. ( WIRE TRANSFER NUMBER : XXXX Were sorry, but there isnt anything we can do because we never received the money from the XXXX. But you sent back the modification paperwork, so you are going to have to go with the modification. 

Weve escalated your account to multiple upper-level managers, its taking longer than expected to fix, call back on Friday. ( XXXX, XXXX XXXX, escalation specialist with loss mitigation on XX/XX/XXXX at XXXX XXXX ) Because the modification paperwork has been recorded, XX/XX/XXXX there isnt anything we can do, and you must move forward with the modification. ( XX/XX/XXXX ) Weve had managers look at your account and because our third-party agency recorded the modification, youre stuck. Maybe you should call HUD and see if they will accept the NCHAF Funds. 

There is nothing we can do. I will message my manager and have someone call you back. NEVER HAPPENS. 

Can I give you the number to HUD? Maybe they can help you. 

I am beyond livid with the situation and honestly feel helpless. It appears that no one working for Flagstar, in the mortgage assistance division or beyond, has any idea of what is going on either. But its not their lives or their home or their family at stake. Its mine. I have been trying to work with Flagstar diligently and XXXX  near religiously for going on 9 months to get back on track with my mortgage. I have done every single thing I have been told to do, and I have done it thoroughly, on time and with great follow up. I am a recipient of {$40000.00} from the North Carolina Homeowners Assistant Fund and my mortgage company has refused to accept the money. In fact, my mortgage company, Flagstar, can not even find where the money is. I am not going to just lie down and become a victim of fraud, which is exactly what this feels like. 

You have caused me personal strife and damages and continue to do so. 

I am asking that this be sent up to the highest levels immediately. 

I will be filing complaints with the Consumer Financial Protection Bureau amongst others immediately. 

XXXX XXXX XXXX # : XXXX XXXX

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