Deland, Florida
Not resolved

My niece & her husband were never notified that their mortgage payment had increased ($300 per month) until they received a letter of foreclosure. When my niece called Flagstar to question the letter, Flagstar told her that her mortgage payment had increased 3 prior and all of their payments from those last 3 mos was sitting in escrow.

So the person on the phone said to quickly pay Flagstar $2600 & those funds would be enough to settle the amount owed. So that's what she did. A week goes by & she received her $2600 back in a check form from Flagstar. She quickly called Flagstar and they told her that it was too late to reinstate & that the foreclosure process had already begun (of course, that's not what they told her).

Now, they can only work with the Flagstar attorneys and at this moment they owe Flagstar between $17,000-$18,000 including payments owed, interest, fees, fees, and more fees. As a very concerned aunt, I have been searching the internet for assistance. We found a FHA sponsored site that directed us to 1-800-895-HOPE. They suggested that my niece & her husband work directly with the Flagstar loss mitigation department.

As of today 9/18, Flagstar is NOT willing to work out their loan & is insisting on foreclosure. Does anyone know what else we can do????

My niece & her husband just had a beautiful baby girl 3 mos ago. They want to pay their mortgage; they want to keep their home!!!!!

Product or Service Mentioned: Flagstar Bank Mortgage.

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Try the Office of the Comptroller of the Currency. They deal with fraudulent and bad faith business practices. Worked for us, in just 10 days.


Joe, you obviously do not know how Flagstar works. Can't youread all of the complaints on this web site or are all of these people idiots too?


Flagstar BLOWS we had trouble, my work hours were cut 40% and we realized we would be short on our mortgage. Flagstar told us they wouldnt even talk to us untill we were 3 months behind.

That was over a year ago... loss mitigation returns NONE of my messages we have sent in our current paperwork 6 or 8 times.

I am ready to petition the state attourney generel to force them to GIVE me the house free and clear. (yeah right)


Flagstar is very bad to deal with.

I had the same experiences. They were very unreasionable.

I lost my job. I wrote them serveral letter asking for a few months.

They never response. They should not be licensed to be in the bank at this time.

Not only that.....


My loan was sold to Flagstar...

Flagstar increased my payment due

to a error on their part. Were suppose to have been paying into escow and they didnt..the next year they uped by payment by appx $80 to cover the year prior's property tax.

BUT....they told me two month's prior they were going to do this...THE...problem we had with them was when my husband got sick and was put in the hospital for one month and couldn't return to work of another six weeks because of a heart condition...we tried to get them(thru loan mitigation to defer payments)(this is what they stressed they would do for us when we got behind on payments>they were so willing to help)....BUT...when it came down to it they refused to help unless we put our house up for sale...we only asked that they defer several payments. They refused to help in any way...this answer came after two months of faxing legal paperwork and letters to them and us being told how they were going to help us get back on our feet. Later by word of mouth from others that had been through this..this is the standard way they want to help... We were totally mislead by them....


Do your neice and nephew not read their monthly statements when they are issued every month? Unlike other banks, Flagstar does not give you a payment book, rather every month sends a statement with a payment coupon. If they had opened their mail, they would have seen that the payment had changed and could have called immediately to work this out.


this just does not sound all correct. it is my experience that a lender that has received previous mortgage amounts and a customer willing to submit deficiency balance to them would sit down and put a work out plan in place.

as Andy Rooney would say..I would like to know the rest of the story. 10/08/2008 post date

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