Our story is like a lot of others. In our case my wife and I retained our jobs (and still work at the same places today) however due to the economy we lost 40% of our income. We owed $308K on our home and couldn't short sell it. Eventually the home was Foreclosed on. We were trying to get a Loan Modification and each month we were told to resubmit financial information on a monthly basis. We were on HOLD from JUNE 2010 to AUGUST 2010 waiting for a decision.
We were told for the month of August 2010 that the sale of our home with the Trustee was being delayed another month. They lied. They bought the loan themselves that month without notice.
Eventually in August 2010 I had a five minute conversation with the guy who was making the decision on us retaining our home or not. He said my wife and I did not qualify for a modification for two reasons. 1. There is a garnishment with my employer which they considered to be an unsettled matter. I informed Mr. Bankman it is for CHILDSUPPORT and was garnished by the State of Texas because that is the way they do business. I was NEVER BEHIND OR LATE WITH SUPPORT 2. Said our loan to debt ration was too high due to not making enough income. I asked by how much and HE REFUSED to give an answer. I asked if it was between $50/month or $500/month and he continued to decline to answer.
So we are now Renters courtesy of Flagstar. Oh BTW... That home we lost for $308K? They sold it Jan 2012 for $190K. Had we been allowed to refinance at that price we WOULD HAVE BEEN ABLE TO KEEP OUR HOME.
Do NOT finance with FlagStar. They are not honorable and dishonest practices are the norm geared to only their own selfish interests. And yes they totally lose documentation you constantly provide them while waiting for their denial, err... decision...
Thanks for letting us vent.
Product or Service Mentioned: Flagstar Bank Mortgage.