Flagstar Worst Bank - Not In Compliance With HAFA Guidelines

I don't normally post complaints but I have had about enough of this lender and their shenanigans and I am hoping that this post will reach someone who might give a darn.

I have been working on a HAFA Short Sale with Flagstar since February 2011. Flagstar is THE WORST BANK on the planet to deal with. THEY ARE NOT IN COMPLIANCE WITH HAFA TIMELINES and don't seem to care at all. Standard response from anyone that answers the phone - the file is in review and if we pull the file you will loose your place in line in the "que" and you will be starting all over again. I have been calling 3 times a week or more since February 2011 and so have the sellers. It is the same story everytime.

I realize that lenders are receiving thousands of short sale requests and don't have time to speak to Realtors about the file but to have no recourse when the file is being mishandled is crazy. Their investor is not being properly represented and the sellers are at a loss as well as I am. They will not even disclose who the investor is on the file. They do not want the investor finding out exactly how their files are being handled.

My sellers HAFA Short Sale should have been approved 2 months ago. Buyers accepted Flagstar's counter and we complied with request for contract addendum to change in price and closing date and submitted HUD with closing date no more than 2 months out from date of Flagstar's Counter Letter. I have now submitted another HUD extending closing date another month as I have not had any response to buyer's acceptance of counter offer. This file should have been closed already. There are no reasons for anymore delays.

There is no accountability and the US Government should be taking a strong look at Flagstar's loss mitigation department and the countless number of complaints regarding their lack of communication and response during the short sale process. You cannot even speak to a manager or escalate a file. They manipulate you with fear and tell you that if they speak to you about the file then you will loose you place in the "que" and will have to start all over again. In reality you have fallen into Flagstar "black hole" without any hope of finding a way out.

If Flagstar is going to blatently violate the HAFA guidelines without any recourse then why are they allowed to be a participant in the program at all. It is a waste of everyone's time to work with this lender. Shame on you Flagstar!