Mount Orab, Ohio
Not resolved

Started with a search on lending tree .com when rental house was put up for sale by owner. Contacted by & approved for loan with Flagstar Bank. FHA loan given with 18 months of filing Chapter 7. Higher payment at closing. Did not explain that loan was approved to include $800/month overtime earned the previous year. When o/t was not available, got behind on payments.

Overcharged for appraisal, have never seen or been given copy of appraisal & appraised exactly for loan amount. Ameridream down payment 'gifted' by seller was added onto loan total & paid back to seller at closing.

After 18 months of us working with Hope Now & a volunteer attorney, lender still does not reply. Lender then took home to sheriff sale June '09 & a predatory lending complaint filed with Attorney General got sheriff sales stopped after AG contacted lender after they received requested copies of loan paperwork, then after that AG said they could not act as private attorney.

Lender only offered forebarance plan at original high payment that we can't afford without overtime income. Construction lay-offs & unemployment 9 months out of last year. Working now but not on regular 40 hr. basis yet & a $2/hr pay cut & no medical benefits. Mortgage loan has ruined the credit that we were rebuilding after filing Chapter 7. We have 12 & 15 yr. old children and can't lose our home! Lender is now in process of taking house back to sheriff sale.

Please send your story by e-mail.

Can't we all join together to stop this greedy lender??

Product or Service Mentioned: Flagstar Bank Mortgage.

Do You Have Something To Say ?
Write a review


You will be automatically registered on our site. Username and password will be sent to you via email.
Post Comment

Check into the relationship between lending tree and Flagstar when you did your loan. Also, for overtime to be counted you must have had it for 2 years and guaranteed to continue receiving it. Also, check dates on your TIL, etc.

Poestenkill, New York, United States #209817

Did not FlagStar Bank commit Fraud with Triple AAA Junk Bonds (Real Estate Backed Security) real face value was (class D or Lower) are they going to pay back China there Trillions of Dollars they gave Banks to lend Americans to buy the American Dream or do Banks like FlagStar Bank BEAT THEM TO? Between that and TARP MONEY they are not GRANTING to there own customers I don't get it and don't tell me there using guide lines they have no intentions of helping they just want the money.

Help no one but themselves its O.K. if they steal but you as a customer get none.

Poestenkill, New York, United States #209713

I have to say I agree with "a". FlagStar Bank decides not the loan agent.

FlagStar is always looking for more and more profit wich is what a bank is suppose to do but it comes a point when a bank goes over the line, on there application they stated it was over-time it was up to FlagStar Bank to ask is this part time or perminate that is there job. I myself asked them to reduce my interest one time there answer was no because they had there investors to answer to, wich was cCrap it was *** Mae I had called them they said it was O.K.

but FlagStar did not want to do this. Frank what happenend to the "TARP MONEY"?


I have to agree with Daryl. I have worked with debt counseling for several years and this situation sounds like an everyday story in my line of work.

Everyone wants the 'American Dream' they just don't realize that their dream is out of their income range. I am not saying that Banks do not deserve some fault, but the majority has to fall on the person signing the documents.

When I completed my mortgage paperwork (with Flagstar), I was able to exclude everything other than base pay. If the loan agent included overtime, it is only because you included it in the documents you submitted to them.


It is the Employee's that is going to make flagstar bank go Belly Up! If the Empoyees worked with there customers it would be a different storey, a lot more customers would still have there homes and a lot more flagstar bank Empoyee's would still have there job's, to me that sounds like an even trade.


To "flagSHAFT bank EMPLOYEE's" you are so wrong if flagSHAFT worked with there customers in these hard economic times they would produce a strong foundation for the future but they don't follow commin sence that would make this bank servive, they are blinded by profit only all they can see is 300 percent profit thats it and if they can not do this they would rather see you loose your home than to work out a plan, i know what i am talking about i rent apartment's and in these hard times i have reduced my rents down 20 to 30 percent, God said it is the Sign of the times, It is writen in the new testiment. It is what it is, and if "flagSHAFT" does not come aboard they are going to sink with the ship, The END


and they are not making a profit by foreclosing. do you know how much it costs to foreclose on a home?

i looked and flagstar lost like 80 million last quarter and 70 million the quarter before all because foreclosures. every bank is losing money.


I agree with Daryl. Sorry your in the position your in. I wouldnt want to be in that position either but even if they did change some of the figures of your loan at closing you didnt have to sign and even if you did sign you still have 3 days to rescind.


that horrible but god will be on ur side and get you through this one way or another


Daryl did not write the comment below, Daryl works for "flagSHAFT bank", I hope you get it now.


Amen Daryl.


I hope you get it.


You are very hard with Flagstar bank customers, i agree some are just plain ***, how much do you know about Tripple A-junk bonds, banks like Flagstar bank committed "Fraud" sold class D, as Tripple A, to foren country's wich is real estate backed, so tell me this, who is worse customers trying to get a modification, or banks commiting "Fraud" borrowing money from china with no intentions of paying them back, so tell me Daryl who is worse? also don't forget bail-outs banks like "flagstar bank" take advantage of wich comes out of our tax dollars.


You still don't get it. Before you signed all the paperwork to get the loan you were told exactly how much the loan would be for, minus whatever changes in taxes and escrow stuff that would occur.

You knew how much you would be expected to pay each month before you accepted the loan. At any time before that happened, you could have rejected the loan and not bought the house. You should have known exactly how much you can afford to pay back on a loan each month with your current income while still leaving some aside in case of an unexpected expense. If you had a pay-cut, layoff, or any other income-reducing event happen, it's on you, not the bank.

They are not responsible for your changing financial situation. They get their numbers almost exclusively from your tax records and your recent pay checks. What would motivate a bank to loan money to someone who can't possibly pay it? How can a lender possibly make a profit off of foreclosure?

They make their money on interest. If you quit paying your mortgage you quit paying interest. At that point you become useless to them and the bank must then try to recover at least some of their loss. This may come as a shock to some people, but banks, the government, and society doesn't exist to hold everyone's hand and bail everyone out of their problems.

If it makes you feel better to believe that I'm a big, bad, evil banker than fine; do so. I just take exception to people who can't take responsibility for their actions. You were not tricked into anything. You just took the loan believing that the world would just stop and accommodate any of your problems and everything would just work out in the end.

You failed: Accept it and grow up like most of us do. Or keep blaming your problems on someone else and stay a loser.


Flagstar added on inflated fees at closing, payment became much higher than it was supposed to be. Did not tell us

anything about changes before closing, and certainly did not tell us they approved loan based on $800/month overtime income. We have tried for so long to get loan made right and all we ask is an affordable payment on a home that is worth under 100,000 but bank's appraisor appraised it at 135,000 and lender refuses to reply to modification requests. When they took to sheriff sale, they claimed we had not paid payments that we did.

How do you turn the blame on us, when all we did was go through with the closing date as it all had been set up by the lender? We did not provide any false information on loan application,

it was the lender loan officer who bent and broke so many rules in the set up of

the loan approved by them for more than considerable profit!

The lender has the ultimate

responsibility to set up loans in a fair manner because they are the ones out to make a profit. They added on at last minute, over-appraised the house & also still after many requests for it, have never shown us a copy of the appraisal that was produced by them well over the fair market value to begin with.

How can you make the reply that you did when you have no clue what this lender is doing to so many families like us who need modifications due to unemployment, changes in income and other situations beyond their control... If the lender had made the loan under fair approval in

the first place, it would have been the

affordable payments we were told & expecting in the first place.

Do you work for the lender and get paid based on your ability to cheat and screw people over who are just looking for a fair loan on a modest home?

After 9 months of job lay off due to a general contractor not paying obligations, then a $2/hr. paycut and lost medical benefits just to get back to work. He could have stayed unemployed and made as much as he does after gas costs to get back and forth to job site, but he did not because he would rather be working for less income than getting unemployment.

God help this country if it has too many condescending critics like yourself!

People like you are not worth the time it takes to post this reply....


We went from 2 incomes to 1 and got behind and we do qualify for a modification...however this is the rub they sold our home in a sheriff's sale 2 years ago and have no legal right to accept our payments nor to modify our mortgage...and when I called them and asked them what they were doing because that is fraud they could not answer me


Your right about if they sat down and added the numbers, they would have found out they could not afford it, and it is quite strong english that they are flunkies, my guess is that you maybe work for FlagStar Bank but there are good customers that just ask for modifications that do make there payment on time, THIS BANK WILL NOT HELP YOU WHAT SO EVER! i know this because i asked for a modification and they blocked me at every step i took, also there delay tactics and know one ever to resolve your problem, they know nothing to help you reduce your loan, they just play the *** game, that stops you dead in your tracks, that is why there new name is "flagSHAFT bank"


Yep, here's a typical example of someone who can't handle personal responsibility and then blames their problems on everyone else.

Instead of taking the time to consider how much they can afford to pay on a loan each month with their income, they let the loan agency decide for them. 10 minutes worth of number crunching would have prevented the problem from the start. So the lender decides that they need to recover at least some of the money that was owed to them and they go ahead and list the house in a sheriff auction, at a certain loss to the lender. But then these dunces go crying to the attorney general who has nothing better to do in the country than to tell the big bad sheriff to stop listing the property for the big bad lender. The buyer earns $2 pay-cut and no medical? That's hardly the fault or concern of the lender. Banks don't exist to hold the hands of flunkies like these folks. Is it so bad that a lender wants to get their money back?

Do banks go into the loan business so that they can just give their money away without expecting that they get it back? Do financial institutions want nothing more than to own homes that they can't even break-even with on a sale?

The worst part is that these people have teenage kids who are now unfortunately being taught how to avoid personal responsibility and how to deflect blame onto those "big, evil, corporations". What a couple of losers.

You May Also Like