While out on temporary disability, I was worried I would fall behind on payments so I asked if I could have forebearance on one or two payments. I was told that only the underwriters had a say in that, and I had to complete a hardship packet - to not make payments at all until I received an answer, as making a payment would indicate that I had no hardship.
I followed directions, waited about 45 days, and was told that the underwriters awarded me a "modification", and was told that this was really good news for me. I asked if it was better than getting a forebearance of the two payments and was told yes, absolutely. I made the scheduled modification payments, on time, in accordance with the modification plan they outlined. Then, suddenly, when the modification was complete (after they took three additional months to complete the paperwork) eight consecutive payments were posted to my credit report as "outstanding/late".
Eight. No matter how many times I have disputed it, I even filed a complaint with the useless CFPB, I'm told that there is no law preventing them from listing my modified mortgage payments as late. My credit is destroyed for the next FIVE to SEVEN years now, I can't finance a car or get certain jobs, all because they destroyed my credit. Why?
Because they can.
And all I did was follow their direction, when I tried to do the right thing and not miss a payment while disabled. Disgusting that consumers can be financially destroyed and have NO protection, and that mortgage companies can have practices that are intentionally so misleading and damaging.
Product or Service Mentioned: Flagstar Bank Mortgage Modification.