steveie3
Cleveland,#2Consumer Comment
Tue, October 30, 2012
Flagstar Bank complaints that address the banks lack of performance in processing modifications can be resolved if the complaintant would write to the Federal Government (HUD) they have locations across America that were set up specifically to deal with these types of problems.
I did it and in less than 15 days after 2.5 years of run around I had my modification in hand. I mean the feds took the file from the bank and it was a done deal. Good Luck
Faye
Michigan,#3Consumer Suggestion
Tue, October 23, 2012
There are three parties involved in a loan modification. You have the investor, the lender, and the borrower. The lender is Flagstar Bank in this scenario. From reading this it sounds like the investor might have been FHA. It this is the case only full payments can be made on the mortgage. Also, it is a requirement to refer a loan to foreclosure once it is 90-120 days behind. This is where the attorneys come in because it is expensive to send a loan into foreclosure. Once a loan is referred to foreclosure there are state guidelines to follow as well. Some states like NJ will stop the process if you can prove that you are working with loss mitigation (sending paperwork through- these documents are very specific and are considered legal documents- they need to be signed and dated and income and asset information must be updated on a regular basis. If you're going through this process I recommend every 2-4 weeks for bank statements and pay stubs). Then there are other states that set a sale date right away and you just run out of time to be reviewed. If you're working with Flagstar bank they will give you a single point of contact- make sure you talk to that person once a week and get your documents in within 14 days of the first time you are contacted by your single point of contact. They WILL have to verify some of the information with you verbally. Timing is very important if you are in this situation and if is at all possible make sure you stay out of foreclosure.