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Flagstar Bank was hit with a home loan modification lawsuit by an Ohio couple alleging that the bank did not follow federal guidelines when they applied for a mortgage modification by engaging in a process known as “dual tracking.”
Plaintiffs James G. and Patricia G. filed the home loan medication lawsuit in an Ohio federal court against Flagstar, alleging the company violated the new rules regarding home loan modifications when the couple fell behind on their mortgage in 2014, ultimately leading the bank to begin foreclosure proceedings.
The home loan modification lawsuit holds that Flagstar Bank illegally and incorrectly processed the loan modification request, leading to the foreclosure of their home in Sycamore Hills, Ohio.
The foreclosure proceeding started less than a month after their loan modification request was submitted, the mortgage modification lawsuit says.
One sticking point in the home foreclosure lawsuit holds that the bank “dual tracked” the home loan modification request. This means that Flagstar bank allegedly started foreclosure proceedings while telling James and Patricia that their loan home loan modification request was still being process.
New federal rules designed to protect homeowners in this situation went into effect in January 2013, creating a newer minimum standard to try and protect homeowners facing foreclosure.
Additionally, many states have laws banning dual tracking. This home loan modification lawsuit holds that Flagstar bank’s handling of the situation failed to meet federal requirements before going into foreclosure.
During the economic collapse in the 2000s, home loan borrowers took major hits. In the case of James and Patricia, they suffered a sudden decrease in income, like many.
In response, the government passed new legislation, laws and regulations, including the HARP programs to try and mitigate the problem. On top of this, many states offer additional protections for those seeking home loan modifications.
These laws and regulations typically restrict dual tracking, and require a greater degree of transparency and make it easier for borrowers to try and improve the situation, to try and head off foreclosures and the further economic damage they do for all parties.
Home loan modification lawsuits like this one have been filed by homeowners affected by the housing collapse, who allege that banks have not followed new rules to try and protect homeowners from foreclosure.
This home loan modification lawsuit seeks to recoup legal fees, specifically the cost of fighting a foreclosure they allege violates federal rules. Their home loan modification lawsuit holds that the practice of dual tracking and other delays they experienced in the process of requesting a home loan modification were illegal.
The home medication lawsuit seeks to halt foreclosure preceding and to have their home loan modification request processed properly.
Join a Free Home Loan Modification Class Action Lawsuit Investigation
If you applied for a home loan modification to avoid foreclosure and were denied because your bank didn’t follow the current mortgage modification guidelines, you may be eligible to participate in a class action lawsuit to resolve this problem:
- Bank of America
- Nationstar Mortgage
- Ocwen Loan Servicing
- Seneca Mortgage Servicing
- Green Tree Servicing
- PHH Mortgage
- Select Portfolio Servicing
- PNC
- Citigroup
- US Bank
- Walter Investment Management Corp.
- Cenlar
- JP Morgan Chase
- Wells Fargo
- Flagstar Bank
- GMAC
- One West
- Caliber Home Loans
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13 thoughts onLawsuit: Flagstar Practiced ‘Dual Tracking” During Home Loan Modification
I want to join please
I LIVE IN AN AREA DECLARED A DISASTER FROM HURRICANE IRMA. MY DEDUCTIBLE WENT T0 4000.00 FROM 1000.00 DUE TO DAMAGES FROM A HURRICANE. I APPLIED FOR A FORBEARANCE AND WAS APPROVED WITH PRIMARY CAPITOL FOR 3 MONTHS TO PAY OUT THE 3800.00 IN OAK TREE REMOVAL AND ROOF SHINGLES REPLACED. I APPLIED FOR LOSS MITIGATION PROCEDURE TO HAVE THE 3 MONTHS ADDED TO THE END OF MY LOAN . WE OWE 169K ON A HOME WITH A VALUE OF 260 IN DECEMBER 2017 WHEN WE STARTED MAKING PAYMENTS AGAIN. BEFORE THIS WAS FINALIZED , MY LOAN WAS SOLD TO
FLAGSTAR BANK AND IT HAS BEEN HELL EVER SINCE.
I HAVE BEEN HARRASSED SINCE JANUARY. 2 CERTIFIED LETTERS OF FORECLOSURE. ONE WEEK I WAS CALLED DAILY AND HAD TO CALL SAY NO PERMISSION GIVEN FOR THE DIALER TO CALL ME. WE PAID FLAGSTAR JAN AND FEB AND GO THRU HELL TO GET IT ACCEPTED. I SENT MY CHECK STUB TO SHOW STILL WORKING AS REQUIRED ON 01-24-17 TO APPLY FOR THE PAYMENTS TO BE PUT AT THE END OF THE LOAN. THEY KEEP SAYING THREE MONTHS PAY 2100.00 . IF I COULD DO THAT I WOULD HAVE NEVER APPLIED FOR THE FORBEARANCE TRO START WITH WHEN PRIMARY CAPITOL HAD IT. LAST FRIDAY SOMEONE CAME TO TAKE PICTURES OF THE INSIDE FROM FLAGSTAR AND YESTERDAY THE COLLECTION DEPARTMENT CALLED AGAIN. in january i contacted the BBB, flagstar has refused to respond to them . The BBB said that would also be in their consumer report .
Is there a lawsuit against Flagstar Bank Mortagaging Service Lenders or not? If so, how do you sign up? Are there other areas where this company failed to meet the standard or just the one mentioned in your newslatter?
We have been in absolute hell with them since 2012. We missed one pmt due to job loss and tried to pay it. We were told we had to Western Union it in, so we did. 3 Weeks later, we received a call from our Western Union Servicer telling us we had a check to pick up because Flagstar denied it. They locked us out of our account and wouldn’t take pmts over the phone. Anything we sent in by mail was being sent back. A few mos earlier we had filed for a loan modification. They had it on file and it was “processing” according to them. I would take time off of work to call in to check the status of the modification once a week. I took time off work, cause I would sit on hold for 1.5 hours-get transferred to the default dpt, sit on hold for another 45 mins only to get a recording that would hang up on me. I was finally told they had lost our modification application, so the whole process all over again. They lost my application 3 damned times- still not allowing us to make any payments and threatening foreclosure. In 2014 we were told that we could re-instate the loan if we were able to cure the default. We had to wait for an amount to come in the mail from thier atty. Never got it, so kept calling every other day cause the re-instate status was set to expire in 2 weeks from the date they approved it. It expired. Went through that requst process 3 more times. FINALLY got an amount, fed exed a certified check to the address they provided. Thought we were good. Till the next day, the fed ex driver called and said there was no such address. I frantically called flagstar to confirm the address (waiting on hold for another 2 hours) and they said it was the correct one. Fed ex sent the check back to me. Got another address from Flagstar -finally, and was able to confirm delivery. Was told to wait up to one week for processing the pmt. Called after one week, and they couldn’t find the check. Was able to prove that it was delivered to them and signed for by one of thier employees, was told to give it another week. I do, and they have no record of the pmt. Another week goes by and (mind you, these assholes call me everyday to remind me I need to make a pmt) I finally am told that the pmt was mailed back to us because it was a little over a dollar short! They mailed back a check made for over $10,000 without any notification through regular first class mail about a month before!! Not to mention it was a dollar and some odd change short because interest had accrued from them giving me wrong addresses! We finally got them a different check for the right amount, they pisted our account, but still denied any regular monthly pmt. They put us in foreclosure. We hired an atty and they actually dismissed thier own foreclosure. We were in the middle of negotiations through our atty for a reinstatement amount and pmt amount. They have denied 5 different insurance policies for various stupid reasons and put force placed insurance on us. They charge about $2,000 a month for that- except for on month they charged $5500. Needless to say, they have blown through our $20,000 escrow account to pay for insurance and taxes. Our atty has asked for an itemized accounting of our account. After 2 yrs, wr have yet to get one. Friday, we were served with another notice of foreclosure with a different atty. Our atty says he needs another $8,000 retainer fee because it’s a new case. I WOULD LIVE TO START A CLASS ACTION LAWSUIT!!!
I am wondering if there are any class action lawsuits against BACTES out of Alabama that copies medical records? My doctor retired in November of 2015 without any notice to his patients. Another group took over the practice for 2 months then closed up. I completed the forms for the request of my medical records and my children. After couple of months I called for status and only got a recording. Someone called me back and advised me I had to call BACTES. I called they stated they never got our release forms so I emailed all three to them. Couple months later I called talked to supervisor who stated they had our forms and I advised them we needed our records. When the first envelope arrived in a priority envelope, but when the second half of mine arrived it was in a flimsy envelope and not sealed it had a piece about 2 inches of scotch tape. Then when my daughters arrived it was in flimsy envelope and completely open. I am not able to tell if any of her records are missing. I never received my sons. So I called and requested all three be put on a CD and sent to me as the copies were terrible on mine you could not even read them. The 3 CD’s arrived in flimsy envelopes 2 of the three we broken and you could tell one envelope had been opened and they did not seal the envelopes again only used a small piece of scotch tape. They reset the two which were not damaged in priority mail envelopes. Isn’t this against HIPAA laws. I do not know if any of my records or my daughters are missing since the envelopes were not sealed correctly. When I brought this to their attention on each occasion all I got was sorry and another envelope with small piece of tape on it. All of these documents have your name, address, phone number, date of birth and insurance company information on it.
I was wondering if there were any class actions against Guild Mortgage, I am a victim of their unfair Foreclosure practices to the tune of 13 major violations of the 2013 Federal Foreclosure Law. Any information you could send that might be of any use to me would be greatly appreciated. I spent all my savings trying to save my house and still ended up without it. To this day I haven’t recouped my losses, it has been devastating to say the least.
February 1, 2011
My wife moved out with my youngest daughter and left me to pay a second child support and the house bills which exceeds my monthly income. In addition, I have been paying child support for my oldest child (to a women in a previous relationship) for 13 years at an amount of $805.00 per month. I was served October 20th 2010, with a subpoena to appear in court to pay and additional child support, medical, dental, vision, after school care, piano lessons, dance lessons and camp for my youngest child. I will have to pay spousal support medical, dental and vision for my wife at a sum of $1407.30 per month. The total child and spousal support deducted from my check is $2212.30. After consulting with lawyers I was advised to file for divorce and for a financial hardship loan modification with a possibility of selling. The divorce will now pending to be final in March, where $633.00 will be returned to my monthly income after spousal support is deducted. Real Estate agent from Zuber Realty listed my house for sale at $249,900. I financed my house from Flagstar Bank in February 2009 for 311,100.00 with an interest rate 5.5%. I now owe $304,000. My only possibility to sell would be a short sale for over $70,000. Starting February 1st, 2011 I will be renting out two of my bedroom to supplement my mortgage. Lease one (1) is for the smaller bedroom and the lease is signed and the bedroom will be rented for $500 a month. Lease two (2) for the larger bedroom will be rented for $600 a month. Both lease agreements will be included as documentation for my hardship and the bank account statements will reflect the deposits. I do not have any money in savings at this time however, I only have $13,000 in 401K.
In addition, the basement of my house was flooded on September 30, 2010. Damages were over $5,000 and I had not flood insurance. My carrier Allstate Insurance doesn’t cover sump pump failures. There was over 2 ½ feet of water in the basement and clean-up, a new sump pump and removal of water exceeded $1000.00. Now I have to pay November s mortgage and an additional child support owed immediately at the hearing on December 2 2010. The hardship of paying the current mortgage amount will be for the next 5years. An additional roommate will be added to pay the $600 a month. This will help in my effort to save the house and not sell.
At the end of my situation that started in October of 2010, Flagstar didn’t award me the modification until I filled twice more. One more time by myself and a final time with a lawyer. It wasn’t until 2014 that I was awarded a modification after dipping into my 401k several years and bowering from relatives and friends. I must have paid out double the amount of money including bankruptcy and lawyer fees that I owed them trying to maintain the house without foreclosing. The time it took them to actually award me the modification going back and forth with mailing them same paper work over and over again, I could have saved the money for another house. The result was extended bankruptcy, bad credit, time off of work, and years of stress.
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Help my wife get the home back is all I care about…Hello all well our story starts out my father in-law pass away my wife got the home and then Flagstar and Dietect Mortgage play her out the house and would not deal with her because they said she was a third party and they could not talk to her after asking for his death certificate also after filing for a mortgage mod. they foreclosed on her its sad our son was living in the home and he has to move out with in three weeks how can we correct this its sad that these company’s screw you over because you are not on the loan and just take the house she grew up in can we talk to someone and get some help here if so contact us at buddha3602@gmail.com or call 402 306 5759 Omaha Nebraska. These people are crooks.
Hello all well our story starts out my father in-law pass away my wife got the home and then Flagstar and Dietect Mortgage play her out the house and would not deal with her because they said she was a third party and they could not talk to her after asking for his death certificate also after filing for a mortgage mod. they foreclosed on her its sad our son was living in the home and he has to move out with in three weeks how can we correct this its sad that these company’s screw you over because you are not on the loan and just take the house she grew up in can we talk to someone and get some help here if so contact us at buddha3602@gmail.com or call 402 306 5759 Omaha Nebraska. These people are crooks.
A lot of denials for a modification from Bank of America Home Loans. Three different attorneys at different times submitting the borrowers package correctly and Bank of America Home Loans claiming ***borrower’s package was missing or incomplete*** all the time. Trial Period Plan was offered and I needed to make three payments and Bank of America Home Loans stated ***After you make all trial period payments on time, and if you continue to meet all of the eligibility requirements of your modification program, your mortgage will be permanently modified.*** I made 7 payments and then I received a letter stating ***I was approved for, and offered, a Fannie Mae Modification Trial Period Plan. Unfortunately, your home loan is no longer eligible for this loan modification program for the following reason(s):
Your loan is not eligible for a modification because after being offered a Trial Period Plan or modification, you notified us that you did not wish to accept the offer.***. Who in their right mind is going to call and not accept the offer? They are sooo evil.
lots of problems with citibank and loan modification, I do not have the home now. the gave me a major run a round