Report: #990575

Complaint Review: Flagstar Bank

  • Submitted: Thu, January 03, 2013
  • Updated: Thu, January 03, 2013
  • Reported By: jamiescale — san clemente California United States of America
  • Flagstar Bank
    5151 Corporate Dr
    Troy, Michigan
    United States of America

Flagstar Bank fraud, insurance fraud, mortgage, insurance policy Troy, Michigan

Show customers why they should trust your business over your competitors...

I recently got a mortgage on a condo thru Flagstar Bank.  The condo association has a master insurance policy to cover the units themselves and I got another policy to cover my belongings inside the unit.  All seemed fine.

A month later I got a letter from Flagstar saying that my insurance coverage was insufficient and that I'd need to greatly increase my personal policy to cover "betterments and improvements" to the unit... If I did not they'd open a policy themselves and charge me for it.  I told them my unit didn't have any improvements (upgraded cabinets, granite countertops etc) and that I was fine with the associations coverage.  They said it wasn't an option and that basically I HAD TO essentially get a policy to cover improvements that I did not have. 

I spoke to my real estate broker, mortgage broker, insurance agent and the homeowner's association and all of them had the same answer: they'd never heard of anything like that and they suspected it might be fraudulent. Flagstar said this clause was in the documents I signed at closing, but when I asked them to provide me with a copy of the doc I signed that tied me to this, they said they couldn't produce it....amazing.  Flagstar, if you're going to rip me off you should at least have your ducks in a row! 

Avoid these guys at all costs...I have had a number of mortgages over the years and these guys are the worst mortgage company I've ever dealt with by a long shot.
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