Earlier this month, I sold my home to a customer of Flagstar. 30 Days into the buying/selling process I was presented with a very bad appraisal through Flagstar, prepared by StreetLinks National Appraisal Service on behalf of Flagstar.
My listing agent requested on numerous occasions to have the appraisal reviewed for accuracy, to which we were denied. for the next 3-1/2 weeks, Flagstar would not clear to close, then requested another appraisal and informed my agent that the first appraisal was wrong and did not meet the Fannie Mae/Freddie Mac Standards. Meanwhile, a new purchase price had been negotiated based on the BAD appraisal. When the second appraisal was done, Flagstar refused to share the results with me.
All I was told was that the new appraisal supported the renegotiated selling price. I was not given the opportunity to re-evaluate the selling price due to the disregard of Flagstar and the error of the original appraisal company. While I understand that legally Flagstar did not have to supply this information to me, had they acknowledged the complaint by my listing agent of the incorrect appraisal, I would not have had the lost financial opportunity. Sellers are held to high standards in disclosing all information so the buyers are protected, why are sellers not given the same protection under the law.
Why was Flagstar able to have no regard for the seller. Their behavior netted a loss of sale of $2,000. while I could have pulled and relisted the home, I had lost the peak selling opportunity. I had offered immediate occupancy, therefore the home was empty, thus not showing at it's peak.
All the pictures had been taken in July and we were now into October, keep in mind, I had the offer from this buyer July 25. Flagstar had put both buyers and sellers at the final saturation point and were ready to walk away and not deal with any other negotiations, they just wanted to close. The Senior Loan Officers strung us along for almost a month unnecessarily, just because he could.
They abused their power in this process and did not reflect the spirit of the laws that protect them. When i filed a complaint with a Consumer Protection Agency, Flagstar would not even acknowledge the complaint since I was not their customer, how fitting.
Product or Service Mentioned: Flagstar Bank Mortgage.
Reason of review: Poor customer service.
Flagstar Bank Cons: Unethical practices.