Flagstar Bank - Won't modify states our home is worth 100,000 more than it is! What?
Due to the economic slide that happened in 2008-to current we had to close a Electrical service company due to Contractors stiffing us almost 80,000.since we were a rather small company it was devistating to us professionally and personally.
We held on for about 2 years but had to close the business in 2010, and file bankruptcy. We were unaware that our home was included or knew that it is required in the state of WA until we traded a car in 8 months later. We have never been late on our mtg with Flagstar and kept paying even though it was included in the bankruptcy. Our home is now worth almost 100,000 less than what we owe on it.
with a 2500 payment and the market not quite improving much we called for modification. They told us they can do nothing for us because we are current in our mtg there is not help. We stopped paying just to see if we qualify for a modification. we are now 2 months in, they just came back and said we do not qualify because our home is worth the amount that we owe on it.
OMG what? Its a 4 bed 1990 sf home that is 12 years old. worth about 260,000-280,000max. The homes down the street are 3100 sf 4 bed new for 360,000.
So frustrating because we want to stay in our home, we just want to modify and refi with a better rate!
We work our butts off now we are faced with forclosure if they do not modify this then we have to wait another 3 years to qualify for a mtg, In our area there are no rental homes or very little and not very many apartments either..Flagstar has trapped all of us they need to not be in business...