Consumer complaint received 2024-10-30 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: NEW YORK COMMUNITY BANCORP INC
State: GA

Complaint narrative:
If the dictionary defined the absolute worst mortgage company Flagstar Bank would stand out as the # 1 mortgage company. Flagstar Bank has maintained my mortgage for the last sixteen years and has been nothing short of a nightmare since day one with the worst experiences being over the last several years. 
Unfortunately, my family was devasted by the COVID-19 pandemic in XXXX experiencing an exponential amount of loss and tragedy including job losses for both my husband and myself, the very unexpected death of my mother due to XXXX, and the near-death experience of my brother after receiving XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX which was ultimately made worse by COVID-19. 
After the expiration of the government implemented three month COVID forbearance I immediately filed the required documentation requested a loan modification ( XXXX XXXX ), approximately 75 days after the initial application I received notification from Flagstar Bank that my loan modification request had been approved and a FedEx package would be delivered within 2 days at which time I was to review the documents, have them signed and notarized, and return to Flagstar Bank before the final submission date. Once I received the documents, I immediately noticed that the documents were all listed in my maiden name ( despite my numerous attempts ( since XXXX ) to have my account updated to reflect my married name ). I immediately contacted XXXX as directed at the number provided. I was advised by a Flagstar representative to take the loan modifications documents, my drivers license, and marriage license to a certified notary and have the documents executed that the name differences would not be an issue. I immediately took the documents to a certified notary of whom WOULD NOT notarize said documents due to the name discrepancies. I immediately called Flagstar to once again advise them of the issue and was transferred to the representative working my case after leaving a voicemail I received a return phone call 10 days later. I was advised during this call that a new set of loan modification documents would be sent out to me reflecting my current legal name with 10-14 business days. It took much longer than anticipated as I received the new documents on XX/XX/XXXX at which time I immediately executed the documents and return to Flagstar including a check for {$690.00} which was supposed to be the first modification payment. According to offer letter as long as all documents and payment were received by XX/XX/XXXX then the loan would be brought current and any unpaid late fees would be waived. All documents and payments were accepted by the lender acknowledgment which was signed, notarized, and accepted on XX/XX/XXXX. 
Despite the acceptance of the loan modification the lender, Flagstar Bank, knowingly and willingly neglected to bring the loan current, waive any unpaid late fees, reduce the interest rate, and modify the monthly payment. Additionally, the payment in the amount of {$690.00} was held in suspense and never applied to the loan. 
In XX/XX/XXXX, the monthly mortgage statements reflected the following statement : Loss Mitigation Program Status- The mortgage is currently on an active Disaster Forbearance Plan option. 
Despite a loan modification and a disaster forbearance plan the monthly amount due continued to rise month over month. I received a letter dated XX/XX/XXXX advising that the forbearance plan was ending while the loan was still delinquent and action should be taken by either resuming payments or completing a loan modification by XX/XX/XXXX. Despite the numerous calls and countless individuals, I spoke to, no one was able to tell me what happened to the approved XX/XX/XXXX loan modification. On XX/XX/XXXX, I received a letter advising that the check ( {$690.00} ) was insufficient to cure the default and they be moving forward with foreclosure. The check was returned. 
With assistance from the Georgia HAMP program, I was able to stop the pending foreclosure, bring the mortgage current, and pay three ( 3 ) months in advance. Shortly after these funds were distributed my husband had to undergo a second major XXXX resulting in a continued and extended amount of time away from work resulting in a significant loss of household income resulting in missed payments. In XX/XX/XXXX an online request for a loan modification was submitted through the Flagstar Bank website. At the time of submission, a submission verification screen appeared including a message that stated Flagstar Bank would be in contact if additional information was needed. I received a letter dated XX/XX/XXXX advising that the application received on XX/XX/XXXX was complete. On XX/XX/XXXX I was advised that the loan modification request had been denied at which time I filed an appeal to that decision. On XX/XX/XXXX a denial to my appeal was issued and advised that this was a FINAL decision. 
Upon Flagstar Banks final appeal denial an accelerated foreclosure process was started. On XX/XX/XXXX I received the first of many communications from XXXX XXXX XXXX of whom was retained by Flagstar Bank to handle the foreclosure proceedings. A foreclosure sale date of XX/XX/XXXX was scheduled. 
I applied for state assistance a second time and due to the additional steps and requirements needed for additional funding the process took a little longer. I filed for XXXX  XXXX bankruptcy on XX/XX/XXXX at XXXX XXXX which initiated an automatic stay and stopping the foreclosure sale. I notified Flagstar Bank as well as XXXX XXXX XXXX between XXXX XXXX  and XXXX XXXX  respectively by phone advising of the filing and the request to remove the foreclosure auction listing. Additionally, I called XXXX XXXX XXXX again at XXXX XXXX  and XXXX XXXX  followed by an email at XXXX XXXX  with no return phone calls or email. The auction listing was not removed and the property was sold at auction for approximately {$130000.00}. I spent the next week on the phone, sending emails, and letters to have the sale the canceled and reversed. Additionally, I was approved for the state program resulting in funds in the amount of {$17.00}, XXXX which was sent to Flagstar Bank in XX/XX/XXXX. 
On XX/XX/XXXX, XXXX XXXX XXXX filed a motion to modify automatic stay as to debtor and waiver of the 30-day requirements of 11 U.S.C. 362 ( e ). Additionally, the motion, states that it is being brought before the bankruptcy court because of the default and clear inability of Debtor to make all required payments. XXXX XXXX XXXX and Flagstar Bank assert that I have failed to make payments between XX/XX/XXXX and XX/XX/XXXX totaling in the amount due of {$2000.00}. 
On XX/XX/XXXX, I spoke with XXXX a representative with the bankruptcy department at Flagstar Bank. I requested clarification on how the {$17000.00} that was received by Flagstar Bank on XX/XX/XXXX had been distributed. I explained that based on the transaction history available through my online account it appeared as if funds had not been distributed. I explained that even after totaling all the statement amounts from XX/XX/XXXX to XX/XX/XXXX ( which was the last available statement ) vs the amounts shown as paid on the transaction history. After taking a few moments to review the account the representative commented Oh you were under a foreclosure. It was at this moment that the representatives attitude and willingness to assist completely changed. It was at this point the representative advised that monthly payments had been paid for : XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. She also stated that she had no idea what most of the codes listed actually meant. I made the comment that as of XX/XX/XXXX ( which is the XX/XX/XXXX statement ) the amount due was {$7600.00} which included monthly payments/late fees for XXXX XXXX XXXX as well as payments made for insurance and taxes, also included were attorney fees and FC costs and expenses . Additionally, XX/XX/XXXX and XXXX XXXX monthly payments totaling {$1300.00}. These amounts came to a grand total of {$9000.00} which leaves {$8300.00} unaccounted for and since I had not received a statement since XXXX I could not determine where funds had been distributed. I asked if a full transaction for the time frame in question could be sent to me. I also requested that monthly statements resume being sent to me and made available through my online account. I was very rudely explained to that ( 1 ) once funds are received by the lender that they have the full and non-negotiable authority to distribute those funds any way they see fit. ( 2 ) that my attorney should request a copy of a full transaction history, and ( 3 ) that until I reaffirmed the loan I would not receive and/or have the ability to view monthly statements. I tried to explain that I had no attorney as my case had been filed pro se, the representative stated then I dont know what to tell you as the history can only be requested by and sent to a licensed attorney. I have in turned mailed a qualified written request for information to Flagstar Bank as well as a request for statements to resume. 
On XX/XX/XXXX, I received the requested transaction history that showed the following had been disbursed of the {$17000.00}. Monthly Payments in the amount of {$6900.00}, late fees {$130.00}, property preservation corporate advances {$300.00}, restricted corporate advance adjustments {$10000.00}, miscellaneous default expense corporate advance {$1800.00}, statutory expense corporate advance {$7400.00}, attorney corporate advance {$1800.00} for a grand total of {$39000.00}. The transaction history also states that Flagstar Bank has also paid my XXXX property taxes in the amount of {$520.00} which they claimed had a due date of XX/XX/XXXX and an applied/paid date of XX/XX/XXXX. The property taxes according to XXXX XXXX Tax Assessors Office as of XX/XX/XXXX have not been paid as stated on the transaction history. 
It appears as if Flagstar Bank is consistently unable to provide it clients with complete and accurate information, provide its clients with foreclosure avoidance and loss mitigation options ( that they actually stick to upon acceptance ), and provide clear and understandable transaction histories. At this point I believe that Flagstar Bank has seen the amount that they could receive from a foreclosure auction on my property and are looking to find any and every way to auction my property once again and receive that amount no matter what they need to do to reach that goal.

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