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.