My fiancÃ© and I recently closed the sale of a short sale property. Flagstar was the bank that owned the short sale. When the HUD-1 settlement was sent to Loss Mitigation for final approval, it was sent the day before the signing on June 28th. The day after signing, June 30th, my escrow closer had still not heard from Jessica Vega, the representative assigned to the sale. After numerous attempts to call her were met with going straight to her full voicemail box, it came past the transfer time at my lender, and we had to wait until the next day to see if anyone would respond to the HUD-1 Settlement. The next day, July 1st, was the last day my fiancÃ© and I could stay in our apartment; all of our utilities were now shut off, and the landlord needed us out of the apartment. My escrow closer had finally gotten Flagstar communicating about the HUD-1, but there were minor changes that needed to be done before it would be approved (one of them was as trivial as how the phrase "title insurance" was worded!). My escrow closer fixed what was needed to be changed, but one item pertained to real estate laws in Michigan, their headquarters, but not in the state I live in, so it couldn't be changed. She explained this and sent the HUD-1 back to Flagstar. After the HUD-1 was sent back, Flagstar stopped communicating and no one could get a hold of anyone in Loss Mitigation again. Jessica's mailbox was still full, and the other contact, named Terrell, was not answering any phone calls from my escrow closer, as well as my lender. I took it upon myself to try and get a hold of anyone in Loss Mitigation. I first tried to contact the manager of the department, Andrea Boeman-Davis, but that was unsuccessful. I then dialed random extension numbers for an hour before I finally got a hold of a woman who connected me to a man who sits next to Jessica. He said she had been at her desk, and was unaware of why she was not answering her phone. He connected me to her phone, and she answered it. I explained the situation, and she told me that "Nicole [my escrow closer] had not given a phone number to get back to her", which I happen to know is not true. I asked her if she could at least call my escrow closer and fax back the HUD-1 so that my lender could wire escrow the funds first thing in the morning. Jessica finally faxed back the HUD-1, and we ended up closing the next day on July 2nd. Fortunately, our landlord was willing to let us stay for one more night; if he hadn't been so understanding, we would have been on the streets until closing.
If the first time homebuyer tax credit had not been extended to September, we would have lost $8000 dollars due to Flagstar's complete lack of skill at handling any sort of business transaction. The personnel that work in Loss Mitigation have absolutely no understanding of deadlines, nor do they care. The entire time I had to deal with Flagstar was extremely unpleasant, and caused extreme amounts of unnecessary stress. If Flagstar is going to be doing business in states other than Michigan, perhaps they should actually know what the real estate laws are in the state that the property is in. Working with Flagstar was a complete waste of time. I feel sorry for anyone who currently has a property that is in danger of being foreclosed; by the time anyone in Loss Mitigation responds, they will have lost their home because of Flagstar's complete and utter ineptness at doing anything to help anyone.
Please, for your own sanity, stay away from Flagstar! All you will get is answering machines and BS answers! They will keep finding ways to push off your sale with them!