Flagstar Bank, FSB Foreclosure Defense

If you have fallen behind on mortgage payments, Flagstar Bank may have notified you that they are starting foreclosure proceedings. Being notified of an impending foreclosure is very stressful, and you may not know which steps to take next. Mortgage servicers such as Flagstar Bank are required to comply with federal and state laws that regulate the foreclosure process. These laws prohibit servicers from taking certain actions and engaging in certain practices when servicing and trying to collect on loans.

Regardless of whether Flagstar Bank has the right to foreclose on you or not, you may have legal options. Below, one of our Flagstar Bank foreclosure defense lawyers explains what these are.

When to Contact Our Flagstar Bank Foreclosure Defense Lawyers

There are many situations when you may need the help of our Flagstar Bank foreclosure defense lawyers. These include, but are not limited to, when:

• Flagstar Bank has declared that you are in default and are threatening foreclosure even though you are current with your mortgage loan payments.
• Flagstar Bank has refused to review or honor your loan modification.
• Flagstar Bank has denied you a loan modification.
• Flagstar Bank has refused a reinstatement or mortgage payment.
• Flagstar Bank has started a foreclosure case or sale of the home while your loan modification application is under review.

It is important to work with an experienced attorney, as dealing with the institution on your own is very stressful.

What is a Loan Servicer?

Again, Flagstar Bank is a loan servicing company. Mortgage servicing companies handle mortgage loans and they are often confused with the original owner of the loan, even though they are two different entities. The owner of a mortgage loan is the financial institution that originally provided the loan that allowed you to buy the property. Sometimes, owners of mortgage loans also service them but they also often hire second parties to service the loan on their behalf.

If Flagstar Bank has sent you a Notice of Intent to Foreclose, or any other notice, they may own your loan. However, there is also a very good chance that they do not. Still, if you fail to act after receiving this notice, it may allow Flagstar Bank to immediately foreclose on your home, maybe in as little as six months.

In the majority of cases, the foreclosure process is very time-sensitive and many homeowners are required to contact their servicer as soon as possible to achieve the best results. You should also confirm which mortgage servicing company is handling your loan right from the start so you know who to contact during foreclosure and loan modification proceedings.

Flagstar Bank’s Options to Avoid Foreclosure

On their website, Flagstar Bank outlines many options for homeowners who are experiencing financial hardships and want to avoid foreclosure. These options are available to people who have lost their jobs, become ill or disabled, are on active duty as a member of the military, or have had a reduction in hours or a rate of pay. For these individuals, Flagstar Bank says it offers homeowners:

• Forbearance plans: Forbearance will temporarily suspend all or a portion of your monthly payment, with another plan in place to bring the account current.
• Repayment plans: With a repayment plan, a certain amount of past due payments is added to current payments until the loan is brought current.
• Short sale: During a short sale, your home is sold for less than what you currently owe on the mortgage. While a short sale will not help you keep your home, it can stop a foreclosure from appearing on your credit report.
• Loan modification: You can apply to Flagstar Bank for a loan modification, which will change certain terms of your mortgage loan. The loan terms that can be changed include the interest rate, the term of the loan, the principal amount, and more.

Flagstar Bank also states that they have many resources and programs available that can help people avoid foreclosure. Unfortunately, they sound more willing to help homeowners on their website than they are. Many people are denied loan modifications even though they are eligible, or the institution fails to apply payments to the account, making it seem as though a loan is in default when it is not. In these instances and more, you need a strong foreclosure defense.

Foreclosure Defenses Against Flagstar Bank

Many defenses to foreclosure can help you keep your home. Some of the most common of these are as follows:

• Failure to follow timelines: The foreclosure procedure requires lenders and mortgage servicers to follow certain timelines. For example, Flagstar Bank must first wait until the mortgage loan is 120 days delinquent before it can start foreclosure proceedings. Additionally, Flagstar Bank generally has to provide 30 days of notice to the homeowner. When they fail to adhere to these timelines, it can serve as a defense to foreclosure.
• Loss mitigation: Under federal law, servicers are required to offer loss mitigation options such as forbearance, loan modifications, and others. While Flagstar Bank claims that they offer homeowners such options, they are often reluctant to provide them.
• Unclean hands: Mortgage lenders and servicers sometimes engage in fraudulent actions that result in unclean hands. For example, Flagstar Bank may fail to apply a payment to an account and then start foreclosure proceedings. This is illegal and serves as a very strong defense against foreclosure.

Knowing which defense will work best in your foreclosure case is not easy. It is important to speak to a foreclosure defense lawyer who can advise you of your legal options.

Call Our Fort Lauderdale Foreclosure Defense Lawyers for a Free Case Review

Facing foreclosure is never easy, but you do not have to do it alone. At Loan Lawyers, our Fort Lauderdale foreclosure defense lawyers can help you fight back against the institution and possibly even help you keep your home. Call our Florida foreclosure defense lawyer now at (954) 523-4357 or contact us online to schedule a free review of your case and to learn more.