Glen Allen, Virginia
Not resolved

Recently granted a Chapter 13 due to loss of income and full payment medical bills from a recent surgery which my insurance company did not pay because they were in a class action lawsuit for practicing in the state of Texas fraudulently. At the end of the chapter 13 process, the law firm recommended I request of my mortgage company, Flagstar Bank, assistance with a Loan Modification to help ease repayments on the chapter 13. The loan modification request was submitted May 2, 2012, all requested documentation submitted and accepted in a timely manner, and on today, June 5, 2012, I was informed that the modification was rejected.

In the documents submitted to Flagstar Bank is a "Uniform Borrower Assistance Form" you must sign. There are 14 items you agree to in the application process. Items #10 and #11 states:

10. I agree that any prior waiver as to my payment of escrow items to the Servicer in connection with my loan has been revoked.

11. If I qualify for and enter a repayment plan, forbearance plan, and trial period plan, I agree to the establishment of an escrow account and the payment of escrow items if an escrow account never existed on my loan.

I did not qualify nor enter into a repayment plan, forbearance plan, or trial period plan.

Now Flagstar Bank is envoking item #10 revoking my prior waiver of escrow payments. This has now "increased" my monthly payment by 2.5 times current amount. I've never been late on any loan payments, taxes, or insurance. Every monitary item on the mortgage is and always has been current.

First payment in the new amount is expected 7/1/12. By them doing this is setting me up for failure because the current loan modification will close June 20th and I'm not allowed to reapply until July 4th. Happy Independence Day -- what a rip off!!! I am seeking legal assistance on this matter. If you know of any attorney qualified or has addressed this type of issue, send them my way - email:

Product or Service Mentioned: Flagstar Bank Mortgage.

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Interesting post ! I learned a lot from the information , Does anyone know if my business could possibly acquire a blank VA 22-1995 copy to complete ?


All I know to say to you is good luck. I am amazed at how flagstar has went about buisness. My email is if you hear anything about this or another lawsuit is filed, please let me know, I will be happy to give my story also.

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