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.
Product or Service Mentioned: Flagstar Bank Mortgage.