Flagstar Bank Flagstar foreclosured on our home while stringing us along from November 2008 until December 2010. We completed many, many, many modification packets. Scanned all forms, spoke with many different representatives that continued to say, send this send that, we need this, its with a modification specialist, the list goes on and on. Troy Michigan

In October 2008, I contacted Flagstar Bank to start the process of a loan modification.  Flagstar some how had us already behind one month after purchasing our loan from another mortgage company.  The first payment was paid to the other company prior to Flagstar obtaining the loan.  When we found out that our loan was purchased by Flagstar, I contacted them to ensure that they had received the prior payment.  I was informed that the full process had not been completed and that the payment would be transferred to Flagstar.  The payment was never received. 

I then contacted Flagstar in Oct. 2008, to report a loss of income to our household.  I was instructed to complete the online modification form, in which I did and fax or email all documents, I did.  I waited about a month and made a return call in November.  I was told the paperwork was not received and to re-fax or email it again, in which I did.  Again, I call back to ensure they received the paperwork, and was told the paperwork was received and someone would be contacting me in the next few days.  I waited almost two weeks and no call.  I called again and was told it would be 30 days or longer before someone would be contacting me. 

After many, many, many calls to this bank, I received an email from a representative with an attachment for a forebearance.  The forbearance was for 3 months of an agree payment.  I signed the agreement and returned it. We made all agreed payments, but still no modification.  Flagstar sent the loan to the attorney's office which added their costs and foreclosed on our home in Dec. 2010.