Flagstar Bank Mod

[JenMBS]

Hi...I too would like some feedback on our hardship letter.


To Whom It May Concern:



We are writing you today to request a loan modification for our property located at
The reason we will become delinquent in our mortgage payments is do to being unemployed. Our hardship in being unemployed started in March 2008, five months after the purchase of our new home, that I XXX XXX, was told I would be laid off after 4 ½ years of being employed with XXX Inc. due to the collapse of XXX Inc. Knowing that state unemployment would hardly pay for our expenses and hourly paying jobs did not pay enough, I was paid by piece work, I went out and started my own construction business as a framing subcontractor, which also ended up being a pay cut too, which made paying the mortgage hard. But we were very thankful that we made it through 2008. Come February 2009 while looking once again for work now as a business owner there were no jobs being done in my field in our area. The home building had flat out stopped in our area. I am still looking for work and have been talking to many contractors in the area with no luck so far. All the contractors seem to be in the same boat. And now with us being self-employed we will not be able to collect state unemployment. What money we have saved will have to go toward living expenses such as food and utilities.
We are concerned about falling behind and do not want to lose the home we worked so hard to have. We have an excellent FICO score that we have always kept in good standing. We do not have any credit card debit but do have two car payments. We take our financial commitments very seriously and have every intention at paying what is owed. That is why we are now turning to you for your assistance in this matter as we actively search for work.
We are asking for consideration to suspend our mortgage payments for a few months and also to see if we will qualify for the Home Affordable Modification. Both would help us now and in the future.
Our home means a great deal to us, we as a family put a lot sweat equity into our home. We framed, roofed, sided and caulked our home to keep costs down. We have two children that also were very involved in the building of our home. We love our home and desire to work with you to keep it. As the economy continues to improve our financial situation will also improve. I have a good reputation in my field and have no doubt to my ability to rise above this current situation. Please advise us of all options available to help us in our current situation. We are very sadden that it has come to this and want to work to keep our home. Thank you for your time. We appreciate all of your help as our family goes through this financial hardship.


Respectfully,

[Moe Bedard]

Hi JenMBS,


Welcome to the forum and thank you for joining.............

The letter is structured good......


You may want to start a thread with the rest of the information regarding who you lender is, interest rate, loan amount............so you can update us on your progress thruout the modification.

[JenMBS]

Thanks *** for being so fast on looking at my letter. I'm sending it off tomorrow. To Flagstar Bank.

OK...How do I start a thread and where should I start it. I'm very new to this board so want to do it right. Thanks

[JenMBS]

Hi everyone

Boy is this a great site. It is so helpful.

I will be turning in my hardship letter tomorrow (below).

Currently our loan is for $385,000 with a Fix 6.125%, we put 20% down, Payments of $2756, FICO score of 809 we've never been late on anything. This is so very hard for us to have to do this. I will try and keep you updated. If any of you have dealt with Flagstar Bank, how did it go/going for you?





To Whom It May Concern:


We are writing you today to request a loan modification for our property located at
The reason we will become delinquent in our mortgage payments is do to being unemployed. Our hardship in being unemployed started in March 2008, five months after the purchase of our new home, that I XXX XXX, was told I would be laid off after 4 ½ years of being employed with XXX Inc. due to the collapse of XXX Inc. Knowing that state unemployment would hardly pay for our expenses and hourly paying jobs did not pay enough, I was paid by piece work, I went out and started my own construction business as a framing subcontractor, which also ended up being a pay cut too, which made paying the mortgage hard. But we were very thankful that we made it through 2008. Come February 2009 while looking once again for work now as a business owner there were no jobs being done in my field in our area. The home building had flat out stopped in our area. I am still looking for work and have been talking to many contractors in the area with no luck so far. All the contractors seem to be in the same boat. And now with us being self-employed we will not be able to collect state unemployment. What money we have saved will have to go toward living expenses such as food and utilities.
We are concerned about falling behind and do not want to lose the home we worked so hard to have. We have an excellent FICO score that we have always kept in good standing. We do not have any credit card debit but do have two car payments. We take our financial commitments very seriously and have every intention at paying what is owed. That is why we are now turning to you for your assistance in this matter as we actively search for work.
We are asking for consideration to suspend our mortgage payments for a few months and also to see if we will qualify for the Home Affordable Modification. Both would help us now and in the future.
Our home means a great deal to us, we as a family put a lot sweat equity into our home. We framed, roofed, sided and caulked our home to keep costs down. We have two children that also were very involved in the building of our home. We love our home and desire to work with you to keep it. As the economy continues to improve our financial situation will also improve. I have a good reputation in my field and have no doubt to my ability to rise above this current situation. Please advise us of all options available to help us in our current situation. We are very sadden that it has come to this and want to work to keep our home. Thank you for your time. We appreciate all of your help as our family goes through this financial hardship.


Respectfully,

[JenMBS]

I sent our paperwork in by certified mail. I just check it to see if it was received and it was. Now I'm just waiting for a call from the bank.

[JenMBS]

Update...Got a notice from My FICO today saying I had a inquiry from
CBC Innovis which deals in credit reports. I'm thinking it was the bank. I still have not received any call from the bank or notices. I'm thinking of giving them a call soon. ***, do you think this would be a good idea?

[Moe Bedard]

Call and ask if there is an update on your file for the modification.

[JenMBS]

I called today & they said they received our packet on 4/13 and was being assigned to an agent, then they will call us. The person I spoke to in the mitigation dept. was very nice.

[JenMBS]

I know under MHA Mod. you do not have to be late on a payment. When I wrote my hardship letter we were not going to be able to make May's payment. Now after one of our contractors has paid us what he owed we will be able to make half our payment from that and the other half will come out of our savings. Is this going to mess things up if we make our payment? We have not heard anything from the bank yet. I really do not want to miss a payment if at all possible. I have heard some bad things about doing forbearance. We sure can't afford the extra payments fees etc. that is why we want a mod. But if the bank does not help quick here and we use our savings our savings will be gone in 3 mos. from just paying the house payment and nothing else. Sorry for the ramble...I'm starting to get more scared about not getting a mod soon enough.

[JenMBS]

Updates: Below is my phone log on when I call the bank and what they have told me.

4/28/09 Jacquelyn Loss Mitigation Dept. Ref#

Called and talked with Jacquelyn. It takes 60 days to be
assigned to an agent. Does not protect credit. I asked her
about getting on their website for the Making Home
Affordable program (MHA). I told her we entered our account
# and said we were not eligible. I told her that didn’t make
since, since when I call to get our hardship packet of
paperwork the person I spoke to said we were Freddie Mac
backed. She then transferred me to MHA Dept. new dept at
the bank.

4/28/09 Karen Making Homes Affordable Dept. Ref#

I told Karen about what their MHA web page said about us not
being eligible. She then asked what the market value was on the
house. I said $485,000 when we signed the loan and the loan
amount was for $385,000. She said then we would qualify for
the refinance. I then re-asked her about weather we were
Freddie Mac backed and she said yes. So I
asked again about doing a Mod. through MHA. She said it
would depend on weather Freddie Mac wanted to do it. She
said it didn’t look like we qualified for it because we
are current on our payments. I said that didn’t make since the
MHA.gov and Freddie Mac websites both said we could be
current on our payments but going through a hardship like
change in income. She said she would have a loan officer call
us in 3 business days and to explain to them what my questions
are. They may have something faster for us then to go through
the MHA program.

5/5/09 Ronald Home Lending Dept. Ref#

Ronald Keen called us from the Home Lending Dept. He said
since we are current on our payment we could refinance our
loan for 4.75% which would knock $275 off our
payments. I then told him I put in a hardship letter. He says he
sees it. It was scanned into their system on 4/10/09. I said we
were able make May’s payment because a contractor that owed
us money paid us and we used that money plus savings to
pay. I said we are not working at this time because we are in
the construction business and everything and just flat out
stopped in our area. He then said oh then you can not get the
refinance because you are not working. I said that is one of the
reasons we put in a hardship letter and we are interested in the
MHA Mod. He then looked closer at our paperwork. Then he
said it didn’t looked like we qualified. I said that didn’t make
since because of our hardship. He said that our loan was in a
FMC Pool of loans-a mortgage bought by investors. I said
we have been told every time by lost mitigation we were back
by Freddie Mac. He then said Freddie Mac services the loan
and Flagstar Bank is the note holder. The program is
not set up for pooled loans. He then said maybe we could do a
Freddie Mac Release Refinance Program. From there I said I
will talk to lost mitigation knowing we could not
do a refinance. We put in for a hardship. He did try and look
up on Freddie Mac’s website to see if Freddie Mac owned our
loan, the site was down. So, I got on there later and put our
info. in and it said that Freddie Mac owned our loan. I made a
copy of it.


*****
I really don't think he knew what he was talking about. Could
someone please explan what the FMC pool loan is? I think I
know from doing some research but would like it to be
explained better. I didn't sign up for it so don't know why that
would matter. And since my loan is owned by Freddie Mac
then that means my bank is the servercer (which is a pooled
loan, right?) and not how he explained it- He then said Freddie
Mac services the loan and Flagstar Bank is the note holder.
Explain please.

[JenMBS]

Can anyone explain?

[JenMBS]

Bump to the top

[mizmgmt]

I would like to know how this works out for you. I just put together a hardship letter and documentation to be sent to Flagstar tomorrow requesting inclusion in the Making Home Affordable loan modification program.

[JenMBS]

I'm still waiting. They keep telling me it takes 60 days from when they get it that someone will contact me. Also that there is no credit score protection. In other words, make your payment on time. That would be in June I should hear from someone. The wait makes it very hard when you are having a hard time even making the payment on savings because of being out of work. Nothing like being screwed with your score because of the wait if you happen not to be able to make a full payment or any payment. Savings only last for so long.

[chedburg]

Can you tell me the address for Flagstar to which you sent your packet? I need to begin this process myself. Also, what documents did you send them? thanks and good luck!

[JenMBS]

You will need to call them first at Lost Mitigation. They then will send you out a small packet with a form to fill out and what you need to send them.

Here is what you can get ready to send them:

*A Hardship letter explaining why your account is in this status
*Your last two pay stubs or unemployment check stubs
*You federal income tax returns for the last two years including schedules
*All you bank statements for the last two months (checking, savings, 401(K), or pension accounts)

They will keep notifying the credit reporting agencies of 30 -day or more delinquencies. The notifications will continue until an approved agreement has been made. And they will also proceed with foreclosure until an agreement has been made.

Keep in mind too that it will take 60 days from when they receive your packet for someone to even call you on this. I have tried to call and see how things were coming along and ever time they just keep telling me when they received my packet and it is being assigned to someone and they will call within 60 days of when they received the info from me. And they also keep saying this does not protect your credit.
I still haven't received a call from anyone. My 60 days will be June 13th. I keep a phone long everytime I call them about what was said, date of call, person I spoke to and reference # of the call. You never know if/when you may need this info to help you so best to keep phone recorders.

I wish you the best of luck. Keep in touch and let me know how things are going for you and I will do the same.

[mizmgmt]

Finally got a response last week. They are now requesting 2 more months of bank statements, tax returns with all schedules from past two years and two current paystubs. Seems like a delay tactic. Why don't they just get it from you when they receive the first package???

[JenMBS]

I call back at the 60 day mark only to be told that it takes 90 days for them to respond. Everyone had told me 60 days.
Well here it is now past the 90 days as of July 13th and I have not heard from anyone. I wonder if it is because we haven't been late. We are barley hanging on not to be late. I will be calling them again I guess.

[JenMBS]

8/3/09 (from my phone log)
Called and check on our paperwork as told after sending in updated
bank statements. The person I spoke to said they have received our fax of
additional bank statements on 7/28. He said it looks like we receive
your packet of info in April. I said yes and he then said oh it is past 90
days, I said yes we are on pins and needles here trying to hang on. He said
he is now requesting for someone to be assigned to us. And setting it to
high priory. He said it could take up to 7 days to hear from
someone.

Well here we are at 7 days and no call from the bank.

[skygrl01]

Hi JenMBS

Have you gotten anywhere with Flagstar for your modification?? I have been in talks with them since March and have FINALLY received the name of my specialist. I have been calling almost everyday for 2 weeks trying to get in touch with her and have not heard back. I am shocked that she hasn't returned any of my phone calls though I understand she is busy. I am current on my payment at this time but dont think I can hang on for much longer.

Just wanted to know if anything has worked for you!
Thanks!
Sky

[JenMBS]

Called on 8/14 and spoke with a pre analysis only to be told that we need to send in another bank statement because the ones I sent in were over 60 days (these were current at the time) and also I needed to send a professional P&L statement. I told her we don't have an accountant do these we are a very small business and just started last year. I told her I do all our bookkeeping on Quick Books Pro. She then told me to also include a letter explaining that and fax the info in. She said to check back in 2 days.

8/19 Called to make sure they received my fax. He said yes they did and that someone will contact us through the mail if they need more info. Everything will be sent to a specialist. I asked how long that would take and that we have been waiting since April. He said he didn't know but should be any day when someone is open to take us.

We have never been late with our current payment, but we are just barley getting by. I am so tired of this. Next plan is to call every two days and bug them.

[JenMBS]

Skygrl01,

Well at least you have a specialist now. Please keep me updated on how it is going with you.

[skygrl01]

Ya I had to send in a second set of docs as well and then to top it off, in May, at 90 days, I was told that I hadn't sent in 2 tax returns and the 60-90 days would start over. I had called in once a week since march and NO one mentioned this. Needless to say I was UPSET.

My biggest issue at this time is that she hasn't called me back after many messages. I am now calling everyday. If I ran a business this way I would be out of business.

Good luck to you.

Sky

[JenMBS]

Wow Sky...that is so bad that they didn't mentioned that the tax returns were missing, that is a big part of this whole thing. I haven't had any problems like that. Anyone that I had talked to look over my info. to make sure they had what they needed. So sorry to hear about the start over, that is just ridicules. I would be super upset too. You should fight them on that one.

Just one tip I can give you is to make sure you are keeping a phone log of all calls you make. Make a note of the date you called, person you spoke to, Ref # of call (ask for it if they don't offer you one) and what you talked about right after you get off the phone. This way you have something to go back to if needed, hopefully we won't need it.

Good luck.

[mizmgmt]

We finally received another letter from Flagstar today. It is the EXACT same letter as the last two letters they sent us. We've already sent them 2 recent paystubs, 60 days of banks statements and 2 years of W-2's. They now have 6 months of paystubs. It's ridiculous. Why would they ask me 3 TIMES for the last two years of W-2's??? THEY ALREADY HAVE THEM!!!