Las Vegas, Nevada

Flagstar has increased our payments because of there low estimate of taxes for two years in a row. Even after we had just closed on the house, they were way off on the taxes.

When I inquired about this and the two month extra cushion for escrow they wanted, they told me they "demanded" that I pay this. Or they alternative was $800 for a escrow waver so that I will pay the taxes and insurance. Pay them $800 so that I can handle my own billed and get it right? I will never do business with them again.

No one should ever tell a customer that they "demand" anything specially if that customer has a great creidt rating.

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Description of the complaint:

My mortgage servicing Flagstar Bank received my application for a loan Modification and three months and a half after I sent all my documents they contract Sterling Home Retention Services so they can process all the Loans Modifications. So, know I need to sent all the paperwork again, because my bank is not capable of transfered.

Ms. S.M was asigned to handle my case I sent all my documents to her on 05/29/09 that she request on 05/27/09. She confirm was received and she forward for approved to Fannie Mai. I call her two weeks later she confirm that they approved Forbidian Plan I just need to make one payment in June 1...

I sent my payment as required. After calling almost every day to this company leaving messages and calling my bank know one was able to provided any information about the status of my modification, finally a human bean answer and stated the the person tha was on charge of my account was fire and my case was left out... my Modification wasn't finalized, the bank continue the Fourcloure...

The company that manage my condominum association received the court documentation confirming the my property still in Fourclosure and they are charging me some other fees additional to the one already added to my loan, just because this people doesn't care if I lost my property. I call today spoke to a Supervisor Rafael Santiago from Customer Service call ref# that stated they don't care because we are the one who fail to make the payments and I explain that I didn't fail because I whant to is because I was in Short Term Disability for more that three months.


I'm in agreement with job2442. I would also like to add that the federal government regulates how much a bank has to keep in an escrow account.

They have a slim margin it has to fall into.

That is why they DEMAND that you make up the deficit. I'm sure if you look into that lengthy contract you signed, you'll find that info in there somewhere.


What the *** does you credit rating have to do with anything? Wait, I know your a ***!


this is fairly common throughout the mortgage industry. if your taxes or insurance go up, that needs to be corrected in your escrow account so the money is there when the payments are due.

in addition if you are paying them yourself the lender has a stake in losing the property if you dont pay the insurance or taxes. in the event of a fire with no insurance, you and the lender would both be out the loan value, because you would be obligated to continue paying for the loan.

if the taxes aren't paid, the property could be sold at tax sale for the amount owed in taxes to the government. So the $800 escrow waiver, is a payment to them for their risk.

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