Hi,

I stumbled upon your website after doing a seach for lawsuits against flagstar bank. I figured there would be people that would in the least read my story, if anything to add to the countless stories of people screwed over by the mortgage companies.

In July of 2009, I was let go from my job. At the time my wife and I were current on our bills. Knowing that losing 60% of our income was going to have a severely adverse effect on our expenses I contacted my mortgage company to explain the situation. I asked them about my options (at the time we were current on our mortgage). Flagstar bank told me that being that I was current on my mortgage, they couldn't do anything to help me--I had to be three months behind before they could start any processes. I called roughly every week asking about different plans--my goal was a forebearance, which they claim on their website was an option. I knew if they could hold off the hounds so to speak for a few months, we would be back on our feet. Well, we fell behind--there was no way we could pay all of our bills on just my wife's salary. So the mortgage went three months past due. Upon this happening, flagstar officially allowed us to apply for their loan modification program. We sent in all of the paper work they request and it appeared that maybe there would be hope. The weekly calls to them that I made all resulted in the same answer--'it takes X number of months in the program to go for loan modification' Loan modification? I just wanted a forebearance. Well, my only option they gave me was the loan modification.

My wife's job was about to be outsourced so we were left with the posibility of no income. We made the mistake of moving out of our house (to another state where family was) in order to survive. Funny to say mistake, huh? Live in the house and starve or move in with family to survive.

In December of 2009 we moved in with family. Flagstar was fully aware it was temporary in our eyes. Yes, we changed our licenses and car registrations over to the new state--we had to--it's the law. We kept the utilities going in our house. Flagstar was fully aware of this and told us just to keep calling them and sending in whatever info they needed.

All along my weekly calls to flagstar seemed like a beacon of hope "Don't worry, you're in default but not in foreclosure yet" I was told on a regular basis.

In May of 2010, we started getting harrassing calls from flagstar (we were getting calls all along but they were easily diffused). Then one night they called and my 2 year old daughter answered the phone, garbled something at them and hung up. Two weeks later we were served papers. My wife called and asked why when they were 'working with us' all this time they would cut the cord. The rep stated that they had called and we mumbled something and hung up and therefore they no longer had to help us.

Many more phone calls were placed with flagstar and once again it seemed like they would work with us. We sent in paystub after paystub, bank statements, hardship letters hell, if they wanted a blood sample I would've bled on a piece of paper and faxed it to them. And every week they told me that we weren't at the point of no return. Every week they told me our loan modification would be reviewed and we'd get an answer.

Now we got a letter in the mail stating that a hearing was going to be held. That date came and went (we were told our attendance was not necessary). A sale date was to be set, but nobody had any information on when--not their loan modification department, not their lawyer, no one. We never got anything in the mail.

I continued my calls to them. Asking for any information. On september 8th, 2010, I sopoke with a rep and told her I needed the sale date postponed--that was what their reps kept telling me to do. she looked at my files and said 'wait, your sale date is Sept 3rd." Apparently they did postpone the sale date. But never told me.

So on September 24th I call them again (my sale date was moved to Oct 4th--and no, no letter was sent that time either) asking about the status. Mind you, i was now calling them every 3-4 days. I was told for the millionth time that my request was in final review and hopefully they'd have an answer this week. Well, today I called them again and I was told that my loan modification was denied on September 24th. I asked why. The rep told me that because we did not live there and it was an fha loan, it couldn't be approved. I told the rep that we still planned on moving back into the house. Well, without proof of that they would not postpone my sale date again.

So now here i am writing to you telling you my story. I know the mistakes I made here--I know I should have gotten a lawyer months ago. I know I should not have listened to Flagstar and done anything else to avoid this. I trusted what their reps said. Now in these next few days I have to decide: Do we file a Chapter 13 or do we just let the sale happen.

Thanks for reading this. Maybe my mistakes will serve some good to someone before they make the same mistakes.

Paul Kelley

I would not recommend anyone to get a mortgage through Flagstar Bank. They are unprofessional and will cost you the deal. Underwriters will not return calls and do not work in a timely fashion.

I received a Fishing phone call on 4-19-10 from a phone number of 304-233-2453 with an automated voice claiming that, my "Flagstar Bank Card has been disabled. Press 1 to reinstate your card, press 2 to leave."

I pressed 1 and it requested my bank card number. After several attempts to get to a main menu, the automated system hung up on me. I have no Flagstar Bank account or card. This was a scam. Attempts to call this number back were not answered. Beware attempts to get your account information from ANYONE.

°When we refi with Flagstar, I talked with the title co. to make sure they had everything and they said they did. Then afterwards Flagstar sends me letters stating we did not have Flood Insurance when we did, I sent them the proof, nothing was done, they purchases another one took out of my escrow. My son was having brain surgery at the time. Then they only pay 1 of 3 tax payments. now my payments have gone up to cover the negative escrow and all is not paid. Again. now they are saying my insurance is not enough. I am so tired of this and my loan agency has closed and cannot get anyone to do their job. This is not the only company to screw us on these problems. So tell me who is supposed to be on our side when companies take advantage of their customers and steal their money because they don't want to do their jobs properly.

I have a mortgage with flagstar bank. I had a fixed rate on my loan; but at the end of the first year my mortgage went up $90.00 a month. I called and asked how this could be when my taxes went down. The rude customer service person could not answer my questions and continually put me on hold. She finally gave me the answer that I had an escrow analysis done and they said I wouldn't have enough held in escrow because there has to be a certain amount left over after my taxes and insurance are paid. And that they didn't figure the right amount at closing for this. In my opinion $90.00 dollars a month is a big underestimation. But my biggest complaint is that towards the end of the conversation she told me "your family should have educated you on the ups and downs of taxes and insurance before you bought the house." I think this was very rude and unprofessional to say. On the upside I can't complain about the very courteous and professional loan officer that helped me acquire my loan. He did a very good job helping me with everything every step of the way. Of course he is no longer with the company.