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Lawsuit against Flagstar Bank, Nationstar Mortgage, First Omni Mortgage Lending, Fannie Mae

Discussion in 'Making Home Affordable' started by bstein2, Aug 11, 2010.

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  1. bstein2

    bstein2 LoanSafe Member

    Hello Everyone,

    If you are interested in reading my story, the post can be found here.

    Nationstar has royally $ucked me over for the last time. I have lost my job due to the stress and anxiety they have caused me and I can't take it anymore. I will be suing Nationstar Bank and possibly Flagstar and First Omni Mortgage Lending and Fannie Mae. We have to get some of our tax money back!

    If you are interested in joining this suit and believe you have a valid case please post a link to your story here and I will direct my lawyer to this post ASAP.

  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    I wish you luck Brandon! Hopefully you will get others who will join you.
  3. tishthames

    tishthames LoanSafe Member

    Is your lawsuit still going on?

    I might be interested, my loan was just transfered on Dec 1, 2010, but my auction date is Dec 10th, they say they can't view my paperwork until the 11th. Suntrust (former servicer) flat out lied to me about getting it suspended and its on tape, and Nationstar said it wouldnt go to auction if I wasnt even in their system. I am so down for a lawsuit, and Fannie Mae won't talk to me sensibly, She had her mind made up before she called me she wasn't going to help me. Tried convincing me that I hadnt been trying for a mod longer than 30 days, try two **cking years???? HELLO!
  4. davephx

    davephx LoanSafe Member

    Remember in order to stop a sale you have to file for a TRO or injunction. A regular lawsuit will not be settled for years long after the home is sold unless get a summary judgment (unlikely and and fastest probably 4-6 months).
  5. tishthames

    tishthames LoanSafe Member

    TRO or injunction

    Do you know how to file a TRO?
  6. davephx

    davephx LoanSafe Member

    That is the problem - unless you are very well versed on filing complaints, motions, etc you need a lawyer usually at a prohibitive fee.

    Different courts have different procedures.

    The sad thing is that "justice" is expensive. But if someone is filing a lawsuit, I assume they have a lawyer or of pro se are quite well versed on legal procedures.

    When I was desperate I met with a foreclosure/loan mod large law firm. They quoted me $25,000 to do a TRO and that would only get to the discovery stage. I think that was very high but it was in 2009 when they were even frustrated with the process.

    They said in a public meeting they saw the same bad faith with banks and very unfair foreclosures for clients. They would love to sue the banks but would probably not stop sales and be very expensive.

    There seem to be lawyers that are more effective. But for a TRO there is no money to win so no contingency fee option it just if successful would stop the sale until the Court rules.

    There are not enough of them we have heard about to judge what the odds are of even getting them.
  7. davephx

    davephx LoanSafe Member

  8. davephx

    davephx LoanSafe Member


    Flagstar is shutdown by restraining order after breaking promises to homeowner
    The decision makers at Flagstar Bank need a good flogging and they got the first lash on Tuesday, August 3, 2010 when Judge Carolyn E. Baker of the 295th U.S. District Court in Harris County signed a Temporary Restraining Order halting the foreclosure sale of a property in Houston.

    See Flagstar is shutdown by restraining order after breaking promise to homeowner Home Solution Counselors - Loan Modification and Real Estate Short Sale Experts Home Solution Counselors
  9. davephx

    davephx LoanSafe Member

    What we need is someone near a local court where there is a successful TRO to go to the Court and get a copy of the original homeowner filing, motions etc, make copies and post.

    I believe that is legal...better be sure... since Court filings are public information.

    Maybe someone can get from Lexis. I don't think Westlaw or whatever the service I use has the original docs available on line.

    But different states and courts may have different procedures.

    But this is in US District Court - so may apply at the Federal Court level.

    Courts usually charge copying per page fees or excess fees. In Phoenix Superior Court they charge $29 per file to look at and then copy fees but I have no idea about U.S. Courts.
  10. davephx

    davephx LoanSafe Member

    Here is the complete history with motions and everything from the successful TRO I had previously posted about on another thread

    CASE NO: 10-CV-2168-IEG (JMA)

    The original complaint had all sorts of claims for relief under
    Truth in Lending trying for recession
    The Complaint was 23 pages and include the motion for a TRO which has to be followed by a Preliminary Injunction until the full case can be heard

    The above claims under Truth in Lending and RESPA were IGNORED by the judge.

    BUT BUT... within the 13 Claims for relief the judge granted the TRO based on:
    Violations of California’s Unfair Competition Law
    Promissory Estoppel

    In addition to the original filing the homeowner filed a detailed "Memorandum of Points and Authorities"

    This isn't yet a win because all this did is temporarily stop the sale.

    Next a preliminary injunction is needed.

    The Court ordered Chase (JP Morgan who bought Washington Mutual) to respond by 11/5 and a hearing on the preliminary injunction held 11/10.

    On 11/3/2010 Chase filed:


    I assume granted which would kick the hearing for preliminary injunction into early December.

    Nothing new found yet.

    ALL of these filings are at
    Hot Off the Press - CA Federal Judge Grants Homeowner TRO against Chase | War on the Home Front

    While this is California specific this can be good education on what worked for the specific situation in this case before one judge in CA.

    It also shows how complex the process is to get a sale stopped this way.
  11. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    When you file your lawsuit and make sure you have correct venue. If the Bank is National then it must be done in US District Court. It is $350 to file. In your remedies ask for injuction. Also file Memorrandum of Request for Expedited Hearing with a Stop Sale Order attached for Judge to sign. Here is the tricky part, you must prove irrepairable harm with justification for Cause for action and Stating a claim pursuant to court rules. Usually if you can survive a Motion to Dismiss by the defendant then you may be saved from foreclosure.
  12. suntrustpickle

    suntrustpickle LoanSafe Member

    Tish, were you already in forclosure proceedings prior to moving to Nationstar? I was just transferred from Suntrust to Nationstar on December 1st. I was 11 months in on my HAMP trial with Suntrust and then they just transferred me to Nationstar. I have yet to receive any information from Nationstar in the mail like their nonexistent welcome letter. I had just got automated calls saying please call nationstar. So I called this week finally spoke to someone and they said they were calling to collect a debt and that I was behind on my payments. I told the lady that I was current with Suntrust before the trial and during. She proceeded to tell me that since I've been on a trial for 11 months my back payments are adding up and unless I try to start the process with Nationstar again it could take a lot longer. Then If I was denied, I would be liable for all the back pay. I told her they would just deny me because now I make enough money. She then said that I qualified for an in house mod. So I said I would fax my recent check stubs. Now I keep trying to call her back to get the fax number but she never answers. Then I hear about all of these horror stories about how people were secretly forclosed on. I live in Georgia so its easier to get forclosed on. I'm just scared at this point and its driving me crazy.
  13. jgolds

    jgolds LoanSafe Member

    I would love to file a lawsuit against Flagstar. I started working with Flagstar back in Jan 08. I lost my job on Dec 2007. I too notified them right away. I was unemployed until Feb 1, 2010. My story seems so similar to yours. After two years of communicating with them and spending almost all my reserve funds and finding out the only way they would work with me was to stop making payments. I have need missed a bill payment in 30 plus years. I had spent all my severance money and had to start withdrawing from my pension to make payments since unemployment wasn't paying all the bills. I was told in Jan 2010 that I could make forbearance payments and they would get back with me at the end of 90 days... well in Nov 2010 they contacted me and re-did my loan. Well the loan amount is greater than the original loan. With my second I owe about $7500 more than my original purchase price. That is over $24,000 more than the house is worth.

    If they had worked with me when I first contacted them it would have worked out much differently. I wouldn't have spent all my severance money on my mortgage and wouldn't have had to start drawing on my pension.

    I am now looking into doing a short sale because I can't even sell my home to break even and my pension is running out and my income from my job will not cover my bills and mortgage, and I need to save money to survive financially.
  14. Our Fight

    Our Fight LoanSafe Member

    I am interrested in the joining a class action lawsuit Flagstar Bank they have foreclosed and I have been fighting them in court.

  15. AngryinOregon

    AngryinOregon LoanSafe Member

    I would also be interested in filing a suit against Nationstar. I've been fighting them for a loan mod since August 2010, which is only necessary because of their processes. I sent payment to them in August, and they claimed that the address of payment changed, sending payment back to me. I then sent the payment to the new address and was told that I now needed to send it to the original address. This went on for nearly 6 weeks. I ended up making the payment via Western Union, but by then, Nationstar said I was two months late on the loan, and was going to start foreclosure. I had never missed a payment, am in perfect standing on my 2nd as well, and their process made me late. They started sending people to my home to try and inspect the property! Meanwhile, I had paid them for September as well, and was now current. They had no record of my payments however and started proceedings against me. I got a lawyer and we've stopped them thus far, but my credit is ruined, my savings are gone, the stress of this has resulted in major health problems, I can't sleep, I had to go on anti-anxiety drugs, it goes on and on. I am ready to go after this company with all my might.
  16. AngryinOregon

    AngryinOregon LoanSafe Member

    The general fax # for Nationstar is 1-214-488-1993. In addition, we've started recording our calls to Nationstar which we are within our rights to do and are not required by law (because they are in Texas) to inform them we are recording. It has been very helpful in documenting the blatant lies they tell us for our case that we are building against them.
  17. hacke999

    hacke999 LoanSafe Member

    I as well as many others who have posted here...in which I just registered a few minutes ago, finally I am not alone..Flagstar bank put me through the ringer starting back in the beginning of 2008, I suffered a severe decrease in pay because gas prices really hurt our business. I contacted them for a loan modification. I didnt hear anything back until Aug, by then it was too late. We were forced into bankruptcy, I included the home in my bankruptcy, but never left, after the discharge, I contacted them back to get a loan modification. I recorded the conversation as they were aware because I advised them (still have the recordings) I was contacted by an agent 3 months later, for a they sent me paper work to fill out etc. I sent it back, and never heard another word, about 3 months later, I was contacted by another agent who told me they moved my to a different department and they would be handling it from here on out...I sent in more paper work again, and they told me I needed to send in bank statements etc. well, I did, for 12 months I had to send them a copy of my bank statement, and my payroll stub, finally, I hired a company to do a forensic audit on my loan paperwork, they found 19 violations, I was contacted by Flagstar again, this time a different person, they said they would work with me if I would make 3 consecutive payments and not be late on any of them, (mind you, these payments were 200 bucks more than my original payment was) I made the payments, I was then contacted by another person who said Flagstar had purchased my mortgage from FHA......I didnt think FHA sold their mortgages but I am not in the real estate business, they then required me to make 3 more payments while they worked on a loan modification plan, I sent them a letter of proposal, dropping my interest down to 3.5 percent, and placing the past due balance on the back side of the mortgage, never heard anything from them on that. So I sent a letter requesting the lien holder on my property, never heard anything on that one either. This was the end of 2009, in the beginning of 2010 they contacted me and wanted me to send documents in about my bank statements again. I said no, and havent made a payment since. They cant tell me who I am suppose to be paying or who owns my home, then hell with them, they will have to come get it... I recorded the guy saying they purchased my loan from FHA... This company has violated more UCC does and FDCPA codes than I can count. Now I hear they are going to try to foreclose on my house again, so I am sending them a letter requesting a record of accounting, I probably wont get it, but who knows, I am on your side, I say file the suit and get some of our friggin money back from these theives.....I want to live in a 3 million dollar home and have the government send me a couple billion too........while I play gold in Cancu with all the REMIC share holders..., I am on board with audio and paper and email correspondence to back it, as well as the copy of the forensic audit.....

    Thanks for having this site up,

    I just wish I knew who was actually the lien holder of my home,

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