FLAGSTAR BANk LAWSUIT!!!!!

Sep 09, 2012
review #344504

Flagstar bank needs to be sued.Does anyone know of any lawfirm that is in a lawsuit with Flagstar bank?

Flagstar bank a fraudulent and foreclosing on thousands of home owners. In the State of Washington there are thousands of foreclosed homes being forclosed and the bank is just letting the homes rott.

Flagstar is foreclosing on homes just to collect the insurance money.IF anyone knows of a lawsuit in the state of Washington please post the name of the lawfirm on the web.Write your local attorney general and complain about Flagstar bank and lets start a class action lawsuit.

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Egirl22

Jul 18, 2013

I have been trying to work with Flagstar Bank on a home loan modification since 10/12 (it's now 7/13), due to being put on permanent disability in December 2012. I have an excellent credit rating and have no other debt, so I attempted to be proactive in this situation in order to protect my credit score from my new inability to pay the current mortgage. Though I have a small savings account, it is set aside for my medical bills, etc., and cannot be depleted to pay my mortgage. I have called Flagstar Bank at least 500 times since October 2012, likely far more, but they (as in not any of the MANY people I've called) haven't answered the phone a SINGLE time. Not once. I have left voicemails daily with the floor manager, my "single point of contact", and the overall manager, who have called me back just four times (not each but total)and not even close to the time period requested, due to my illness. Therefore, I was unable to take their few calls, and each time I attempted to call them back, oftentimes just seconds later, they failed to answer.

After working incredibly hard for many, many months, being denied, reapplying and updating all documents for months and months, I was finally offered a trial loan modification plan, at HUD's recommendation to them, in April 2013, which I completed successfully and EXACTLY as directed, down to sending the payments by the first of the month though I don't even get paid until the first of the month and only once a month,
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cs

Jun 19, 2013 Dayton, Ohio

Ongoing..a class action lawsuit is definitely in order...half of us don't have the funds to pursue them individually...what they have done to us, emotionally too, is down right sickening.

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Kymera99

Dec 29, 2012 Kansas City, Missouri

I think Flagstar is dirty. I had my home for 5 years and never missed a payment. Lost my job in Feb 0f 2011. I let Flagstar know In March 2011 about my situation. They said they could not help me unless I stopped making payments. Had enough in savings to make my payment for 6 months. I stopped making payments in Sept 2011 and tried to do a loan modification. Flagstar told my attorney and myself that the foreclosure process would be on hold till my modification was completed. On Feb 7th 2012 I was denied for a modification and Feb 8th 2012 I was told I had to be out of my house by March 1, 2013.

I house is still on the market and is overpriced in my opinion.

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cs

Jun 19, 2013 Dayton, Ohio

Did they send you paperwork or did they tell you to contact their recovery team who told you verbally to get out, as they did to us?

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Me

Oct 16, 2012

Please don't trash Flagstar bank without proof, not cool. And MI is the 2nd worse economy in the USA!! Behind only Nevda. A bad economy, and people getting loans for houses out of their price range causes people to lose their home, Especially if they lose their job, take a pay cut, their home interest rate goes up, ect,...

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Judged by the Company YOU Keep

Apr 19, 2013 Portland, Oregon

Flagstar Bank is an overwhelming example of dishonesty and duplicity. They are supposed to do modifications according to HUD rules but don't follow them. When people have incomes they are supposed to follow the required formulas. Last June, 2012 HUD put out a notice that banks were not to require the 31% DTI entry any longer. Flagstar went on denying modifications by ignoring this directive. Later, HUD set up a new set of directives.

Flagstar Bank is well know to be a run around to people who are applying for loan mods and would qualify. I know of one who was told he was qualified one month and the next month told he wasn't. Letters come, singed by certain "speicalists" with a phone number and no one ever returns the call - over and over.

Some day there will be a class action lawsuit against them and I hope the punitive damages are high.

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Judged by the Company YOU Keep

Apr 19, 2013 Portland, Oregon

On your claim of people getting loans for homes they couldn't afford; Flagstar Bank was sued by NY US Attorney for FHA underwriting fraud and fined 133 million USD. They gave workers bonuses for cranking out FHA loans. They conned people into thinking they would be able to afford them. Other banks did it too and have been sued and fined as well. My own community bank offered us a no stated income loan for a home we knew we couldn't afford. We didn't do it. But I realized that all this was fueling the house flipping bubble and the subsequent crash.

Trying to blame it on the simple consumer is dishonest and these bank practices and BUNDLING these lousy loans and selling them as securities are what caused the recession. The banks did it all and Flagstar is one of the worst because its now trying to profit by misleading people who come to them for help via a government program that they are so far violating every day.

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Anonymous

Jun 19, 2013 Dayton, Ohio

This is in addition, if I may; Dear, ME...since no one can reply to you under your comment I will do so here. Don't trash a company who is doing this to us, our families and millions of others? You must work for them. Everything everyone is saying here is true and there is plenty of proof. Thank You to Judged by the company YOU keep for having the victims of Flagstar Bank's backs... Appreciate your input very much and if there is a class action lawsuit filed against this bank keep me informed...thank you very much...we filed bankruptcy and that has still not stopped their harassment of us (among other things)

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Tball

Aug 26 Michigan, United States

Really Me.....In have lived in Michigan my entire life, made good money until the automotive industry crashed. I have files that are over 6 inches deep of faxes that I had to send to them weekly as no one could find anything that I faxed. They do not correctly report to the credit bureau and I just found out from HUD that they are exceeding the time allowed to file the insurance claim so they can get more money from the HUD insurance and you want us to not trash talk them, it is not cool!!!
They are not ethical in any manner and I plan to do anything that I can as they are still negatively impacting my life 5 years later by not following the rules or laws!!! The average person would be in jail but this company can continue to rip the people and the government off!!

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Undisclosed

Sep 13, 2012

I'm pretty sure that the bank isn't "letting the homes rott...foreclosing on homes just to collect the insurance money" because that would be illegal.

The possible scenario that would be better suited for this type of situation would be the fact that Washington has finally witnessed what the rest of the country has been going through for a long time?

Banks are highly regulated, and although they are sometimes found to be out of regulation, for the most part - foreclosing on homes just to collect insurance money - is something that would be highly illegal and discovered quickly by regulators. Every foreclosure decision/underwriting decision has to follow guidelines and if it doesn't they have to be explained as to why they didn't follow those guidelines. Not to mention the fact that banks don't want "non-performing loans" on their books - it hurts them.

Starting a class action lawsuit on a bank for foreclosing on homes, legally, is frivolous. Could it be that unemployment spiked in your state approximately 3-12 months ago? Could it be that an industry in the state of Washington took a hit about that amount of time ago? There are many things that factor into when a bank decides to foreclose or not- first being the borrowers willingness to communicate their situation.

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Judged by the Company YOU Keep

Apr 19, 2013 Portland, Oregon

I have plenty of proof that Flagstar is operating dishonestly and in fact foreclosing just for the insurance payouts. They are incredibly arrogant about it. They have been driving people into foreclosure by not following HUD/FHA Guidelines when customers apply for the HAMP programs. Once in, they get run around until they give up. Flagstar was sued by the NY US Attorney for FHA underwriting fraud and will someday be sued for abuses committed during the current Home Affordable programs. I have today reviewed much online Flagstar information and find that while they have been running their customers around, not following the HUD directives, they took over 4000 million in TARP funds!

HUD/FHA wants banks like Flagstar to perform modifications according to its new Mortgage Letter 2012-22 so that FHA will not have to take a tax bailout due to paying out on foreclosures. Flagstar doesn't care!

Flagstar also seems to have a high turnover of employees and no one seems to know anything. They don't even know that a request for a variance according to HUD/FHA rules is up to them.

The rules for regulating banks are violated all the time, especially during the housing bubble and since. It will take years for the legal messes to be cleared up, but I hope there is a class action against Flagstar with enough in punitive damages to shut them down for good.

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cs

Jun 19, 2013 Dayton, Ohio

They did this to us..so to say it isn't happening is a lie...thank you for pointing out the truth for those of us in this battle!

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Me

Jun 30, 2013

Mine when into foreclosure immediately due the "condition of the home" which is not a legitimate reason to deny a loan modification, which instigated the foreclosure proceedings, and after disputing this and being afforded another opportunity, and fighting with the the never ending fax, and fax, and mail, and fax more, and things never arriving etc... I am on to try something different, like sell the house! Since I didn't get the last batch of paperwork fast enough, they closed my file saying I have no options. Now I am trying to better understand this MERS error, there is a glitch in my title, whereby chain of custody in ownership is not clear, which all somehow has something to do with the insurance money as well, I think the big l00 million dollar lawsuit speaks for itself. I am not counting on a short sale either. I think there is a lot more to this, and it hasn't trickled down yet to us pons, who are the true victims of this. I think a class action suit needs to happen, because like someone else said, it is too much for us to pursue individually, each case would be way too costly, and way too time consuming, and there has already been too much loss.

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