Kresgeville, Pennsylvania
Not resolved


I stumbled upon your website after doing a seach for lawsuits against flagstar bank. I figured there'd be some people here that would in the least read my story, if anything to add to the countless stories of people screwed over by the mortgage companies.

In July of 2009, I was let go from my job. At the time my wife and I were current on our bills. Knowing that losing 60% of our income was going to have a severely adverse effect on our expenses I contacted my mortgage company to explain the situation. I asked them about my options (at the time we were current on our mortgage). Flagstar bank told me that being that I was current on my mortgage, they couldn't do anything to help me--I had to be three months behind before they could start any processes. I called roughly every week asking about different plans--my goal was a forebearance, which they claim on their website was an option. I knew if they could hold off the hounds so to speak for a few months, we would be back on our feet. Well, we fell behind--there was no way we could pay all of our bills on just my wife's salary. So the mortgage went three months past due. Upon this happening, flagstar officially allowed us to apply for their loan modification program. We sent in all of the paper work they request and it appeared that maybe there would be hope. The weekly calls to them that I made all resulted in the same answer--'it takes X number of months in the program to go for loan modification' Loan modification? I just wanted a forebearance. Well, my only option they gave me was the loan modification.

My wife's job was about to be outsourced so we were left with the posibility of no income. We made the mistake of moving out of our house (to another state where family was) in order to survive. Funny to say mistake, huh? Live in the house and starve or move in with family to survive.

In December of 2009 we moved in with family. Flagstar was fully aware it was temporary in our eyes. Yes, we changed our licenses and car registrations over to the new state--we had to--it's the law. We kept the utilities going in our house. Flagstar was fully aware of this and told us just to keep calling them and sending in whatever info they needed.

All along my weekly calls to flagstar seemed like a beacon of hope "Don't worry, you're in default but not in foreclosure yet" I was told on a regular basis.

In May of 2010, we started getting harrassing calls from flagstar (we were getting calls all along but they were easily diffused). Then one night they called and my 2 year old daughter answered the phone, garbled something at them and hung up. Two weeks later we were served papers. My wife called and asked why when they were 'working with us' all this time they would cut the cord. The rep stated that they had called and we mumbled something and hung up and therefore they no longer had to help us.

Many more phone calls were placed with flagstar and once again it seemed like they would work with us. We sent in paystub after paystub, bank statements, hardship letters ***, if they wanted a blood sample I would've bled on a piece of paper and faxed it to them. And every week they told me that we weren't at the point of no return. Every week they told me our loan modification would be reviewed and we'd get an answer.

Now we got a letter in the mail stating that a hearing was going to be held. That date came and went (we were told our attendance was not necessary). A sale date was to be set, but nobody had any information on when--not their loan modification department, not their lawyer, no one. We never got anything in the mail.

I continued my calls to them. Asking for any information. On september 8th, 2010, I sopoke with a rep and told her I needed the sale date postponed--that was what their reps kept telling me to do. she looked at my files and said 'wait, your sale date is Sept 3rd." Apparently they did postpone the sale date. But never told me.

So on September 24th I call them again (my sale date was moved to Oct 4th--and no, no letter was sent that time either) asking about the status. Mind you, i was now calling them every 3-4 days. I was told for the millionth time that my request was in final review and hopefully they'd have an answer this week. Well, today I called them again and I was told that my loan modification was denied on September 24th. I asked why. The rep told me that because we did not live there and it was an fha loan, it couldn't be approved. I told the rep that we still planned on moving back into the house. Well, without proof of that they would not postpone my sale date again.

So now here i am writing to you telling you my story. I know the mistakes I made here--I know I should have gotten a lawyer months ago. I know I should not have listened to Flagstar and done anything else to avoid this. I trusted what their reps said. Now in these next few days I have to decide: Do we file a Chapter 13 or do we just let the sale happen.

Thanks for reading this. Maybe my mistakes will serve some good to someone before they make the same mistakes.

Paul Kelley

Product or Service Mentioned: Flagstar Bank Mortgage.

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My family and I are in the same boat. We were approved through the State of Michigan for the Help for Hardest Hit Program, but Flagstar wouldn't take the money because it didn't totally clear the deliquency.

Instead of taking the Federal Money and working out an option with us. Nope, they would rather foreclose on our house, after I have been working with them for over two years to modify and have had a lawyer involved for the last three months. Our sale date is two days away and we are hoping for a miracle. All you get from Flagstar is the run around no one knows what they are doing over there.

Four different people give four different answers. We were told our request to postpone was denied because underwriting said there was nothing they could do.

What a joke!!! Don't do business with this bank.


same thing here we did everything we could but all they did was continue to screw up....we cashed in all of our 401k and everything.....but now this yr we got our taxes done all excited thinking we could try to get back on our feet but guess what they took every dime....cuz the feds bailed them out now I owe the feds...Is this even legal???? they sold the home and say we owe a ton of money.....this banks sucks!!!!! I dont even have an idea what to do.....I just don't know how they can do this.....the last thing we wanted to do was lose our home and have to move with our 4 kids....UGH i am so sick over this.....


Bump to remind readers not everyone gets lucky




Why this is important to Pay your Electric, Gas and Oil. When you get an apartment nothing can be worse than the Utility Departments "Shutting Off Your Utilitys Because Of Pass Due Bills," This will follow you, and when every body is doing badly because of the economy do not count on friends or family to bail you out with this simple task.

Take care of those 3 simple things and everything will work out O.K. Do not trust Flagstar Bank no matter what they say, read all the responces other customers have gone through, INFORMATION is POWER.


"Important Pay Your Utility's" Pay electric & gas only oil if that is what you have for heat. Don't pay Taxes & water stick it to "flagSHAFT bank" there going to get stuck with that bill when you finally leave, they stuck it to you now stick it to them, any papers that they serve you to vacate property is cCrap, no one can touch you things or they are responsible for damages to your property & storage of same.

Be strong they sScrewed a lot of good customers.

Do not leave get even, this is your last stand. Remember all the times you asked for help.


Your not in a good spot, "flagSHAFT bank" helps nobody, there going to play every dirty trick they can on you. your soon going to get served papers to vacate, don't do it, there hoping that you are going to leave on your own again don't do it, don't believe any papers that they serve you, there is due process through the Legal System you can at least get a couple of years from this your main case is you are disputing your case because you called and asked for help, it went on deaf ears.

What else are you going to do move home with mom take this for all it is worth save your money don't give them a penny. Then if you need help in the year 2013 then ask your mother for help, you will at least have a couple of bucks in your pocket. Remember they can't take blood from a rock, hold on to your cash do not put it in a bank because they can levy your account. Do not leave your property they can send you all the letters they want.

Play dDum! change your phone number.


I am in the same situation. My job cut back and I could not afford the mortgage.

I asked them to lower the payment for a while until my job came back to full time. I sent in all of the paper work. I tried to file Bankruptcy but was told that I do not make enough to file. So what do I do?

Who do I call. I sent in paperwork and everything.

I am lost. My kids and I will have to move in with my mom in a month.


I have a very similar stroy. I lost my job, could not find another one.

I had to move to another state to take a job at 1/2 the pay. I have been loan modification was my only option. I send in all the paperwork twice and was just denied. I was told that I had an incomplete pack due to the fact that it had been more that 6 month since I sent it in.

Why should I have to keep sending in papaerwork becuase they can't get something done on time.

My house is now setting empty, I even tried to sell it but nobody is buying houses. What are we suppose to do?


Should have just closed there doors, not given more money that is suppose to be Grant money for customers having economic problems, what they did was forget what the money was ment for. They would rather give only new loans for new customers again charging fees like points racking up costs that only the banks get the profit and nothing for grant relief that was suppose to be for customers only, why is it that Obamma can't take the money back and come out with a new system, that works for its citizens being abused by the system. he did it to the auto industry, why not the "flagstar bank, or only give banks a dollar to dollar amount that goes to relief of customers, not new customers, There will be enough new banks that will take care of them.


Call the Media, there always looking for a good story ask them to do the research. I know they will help you, don't forget 60 minutes there not afraid of no one, the tarp money was to help save homes, the banks answer was even if they granted the loan modifications customers would loose there homes any ways. Then why did they take the TARP money in the first place if they were only going to do what they wanted.


what happened to the TARP money that flagSHAFT bank received I think it was about 600 million dollars, ask them how many loan modifications were granted best yet ask them how many out of a hundred customers received the grant money, it was not even 1% percent. Once they received the money they changed lanes and did what they wanted with the money, tell me that is not fraud?

I know that is not what Obamma expected, but flagSHAFT bank is smart they can find a thousand ways to deny your loan modification, plus keep you hangin and beggin for a year just to deny you. What a sShit Bank!


Same thing with Flagstar Bank here. I have been denied for HAMP after changing jobs and making much less.

I applied and it took one year to get a "no". Now I have defaulted and am doing it all again, the difference now is that I can pay monthly payments if they just let me.

They blow - we need a class action. I have my attorney making calls now.


If you are about to loose your home and all is lost, please Dispute this in court do not lieve your home fite this all the way but remember do not leave your home there is a process that you can atleast get 18 to 24 months of free rent just staying were you are once you leave your property on your own it is too late, so stay were you are and "Dispute This" it is your leagal rite, save your money and don't give them a thin dime, see how they have forclosed on other customers and serverved them walking papers, read what other customers have gone threw with this been bag bank!


What is your sureprize? they do this to all there customers, here is a question ask a Flagstar Bank rep what is the percentage of customers that get a modification out of "one Hundred" it is not even "one percent" so again what is the "SUREPRIZE".

Customer on this site tell the same story, you send in the paper work they say they never received it, they do this over and over again no matter fax, telephone calls it does not matter YOU ARE NOT GOING TO GET A MODIFICATION!

Call the BBB, your Attorney General, State Senator and last but least the Local Media let your cry be heard. what I see is customers give up without a fight I don't understand why?


I was dealing with Flagstar and they denied a modification and of course I was told. They needed updates again of my financials.

I started calling them in 2008 before I was late in my payments. They told me I was not a priority and needed no help. When I defaulted and gave my contact the info she requested I never heard from her again. I am working with LRC whom Flagstar sent my loan to review and I have submitted the documents duplicate times after being told they never received them.

I spoke to my agent and questioned what is going on and she had the emailed documents but just didnt see them. I am applying for HAMP. I dont think Flagstar is working any program in house. I know for a fact my loan officer overvalued my house to be approved for my loan.

All I wanted was to refinance. If we cant sell our homes we are trapped. The banks should buy back homes for what they appraised them for.

We will never be able to afford a mortgage with low credit. The banks are doing whatever they want and government does not care.


on your comment, "Here is the Proof" customers would default if they received loan modifications does not make any sense if customer is paying $2000.00 a month and a loan modification takes down the amount to $1600.00 a month there would be thousands of customers that would still have there homes I don't see how you could argue with that? Unless you work for "flagSHAFT bank" that could explain why you think like that.

"What is most important" is again is you based your number of defaults on customers that did not "Default" it was based on thin air! You must work for "flagSHAFT bank" there would be know other reason for that comment, it makes know sense?


The government launched a series of stimulus programs to help out during the recession. One of them was a loan refinancing program, but more individuals are likely to get bank loan refinancing than a government one.

Troubled homeowners, under certain conditions, could apply through a government-run program for mortgage refinancing.

Here is the proof: Bank loan modification is more likely to end in defaultHowever a good idea it seemed, the program has been less successful than hoped. As a result, banks have been stepping to the void to modify the mortgages of customers on their own. That is not all to the story though.

There is a downside.

It turns out that private modifications are less successful than government refinancing. Homeowners are two times as likely to default on a private refinancing.


Customers all you have to do is call them complain if this is done in numbers, they have to get tired and do something about it what any state or city official hates the most is there phone ringing non stop, i know this because i am a city official the telephone is the worst call and call, don't forget there is a telephone directory on the net you can get direct numbers to your officials, but keep on calling till they listen but be polite you get more with honey!


"flagSHAFT,Reps" are just no good, destroying there place of employment by making there customers go belly up with bad advice and putting the last nail in your coffin before you loose your home.

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