Winter Park, Florida
Not resolved

We were with Flagstar bank and had never missed a payment. In 2009 I lost my job and also faced a medical issue with cancer.

We paid our payments on time for 2009, never missing a payment.I contacted Flagstar in early 2010 letting them know of our economic issue and ask if there was something they could do to help us since I still had not found a job and my husband could not make the payments by himself. I was told there was nothing they could do because I was not working. I finally got a job but it was in another state. We decided to put our home on the market.

It was on the market for 3 months and I called Flagstar about a "short sale" since I had been offered a job in another state. They sent the paperwork which we completed and sent back promptly. It has been 1 long year of providing paperwork, my realtor having to keep in constant contact with Flagstar and them dragging their feet. We have had 3 "potential" buyers and due to the promptness and attention to our situation from the bank 2 backed out.

This month (October 2011)after many, many months of aggrevation, stress and anticipation, Flagstar counter-offered to the "potential buyer". The counter-offer was accepted and we were thinking we would be closing within several weeks. On Monday 10/3 my realtor called Flagstar to followup and was told that our home was being foreclosed on Tuesday 10/4 and they had sent a letter to the homeowner on Friday, September 30,2011. It is Wednesday 10/5 and we have yet to receive a letter.

When I contacted the bank I was told the short sale was denied by FHA/HUD. I contacted FHA/HUD and they told me they never ever look at the documents which I was told caused the denial and that it was the banks decision to foreclose. My husband and I as well as our realtor have never had an experience with a bank such as Flagstar that just doesn't want to work with you. Our home foreclosed yesterday because it seems to be in the best interest of Flagstar to foreclose than to work with you to save the home.

Apparently they get more out of it by foreclosing.

I will tell everyone how we were treated by this company. I am seeking legal counsel to see what our options are against Flagstar.

Product or Service Mentioned: Flagstar Bank Mortgage.

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Right before Christmas last year, my wife was laid off. We were able to keep up to date on our mortgage payment up until May.

At that point we filed for the Loan Motification Program. I started the process and submitted paperwork. I jumped through their hoops and submitted more paperwork. By the 2nd week in July I had finally got all my paperwork turned in, conclude with my wife's contribution letter, that had to notarized.

AT that time, my point of contact was no longer working there, for whatever reason. For three weeks I waited for Flagstar to approved my loan modification / Loss Mitigation, just to have my new point contact tell my that my wife's contribution letter was NOT exactly what they needed. They wanted to have on the letter a percentage my wife contributes, and to use their template, not to mention having the new letter notarized again!!! Three weeks prior, the one I googled was sufficient.

After all that BS, and four months later, I was denied!!! I was told by point of contact way back when to not make any mortgage payments. Now look at me...

I am 4 months down and now a law firm is seeking to forclose if I don't pay my mortgage in full by next month. This is crazy!


I wanted to buy a shortsale, but Flagstar is busy victimizing the widow of a cancer patient who died, and was the sole person on the note. They loaned the guy the money. The widow never had an income and is not on the note. But these *** are simply putting the poor widow through legal hoops, where she has to pay lawyers with money she doesn't have, and then they don't bother to even respond. I had to contact their VP to get a call back!

Let it be known they wasted 3 months of our precious time, with our downpayment in escrow these *** saying the lady needed to be declared executor of the estate! She is the wife of the diseased and she has the rights by NJ law! Their agents give out wrong legal information to delay the process so they can foreclose! They take advantage of a poor widow and want to attach her mobile home in Florida to boot! They take us poor short sale buyers along for the ride wasting our time using us to somehow justify themselves as they want others to think they are acting in good faith. There should be a major lawsuit. There have already been several in New Jersey.

I told everyone already, to refinance with another lender. DO NOT do any business with Flagstar, they are not acting in good faith. They play games and victimize widows.

They should require the borrower to get insurance, but they don't.

Short sales do not make them enough money. What is worse is that when someone dies they probably get paid by their own internal insurance. So this foreclosure and making the widow suffer like this, is just a way to make more profit on her back. The woman nearly died from the aggravation. She just wanted to sell us the house in a short sale and they just stonewalled her. Terrible. :(


This Bank is a joke...they want to foreclose. They do not want to do business with us. We have a Short Sale buyer but the bank would rather take the foreclosure.

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