Flagstar Bank

By Mortgage Outreach Staff

Flagstar Bank’s chairman, Thomas Hammond founded his first mortgage company in 1968. By 1987, he acquired a thrift charter and formed First Security Bank in Bloomfield Hills, Michigan. Five years later First Security expanded its home lending operations nationally. By 1996 the name changed to Flagstar. Now it is listed on the New York Stock Exchange with more than $16 billion assets and 143 home lending offices in 27 states.

If you’re having trouble making you mortgage payments, Flagstar Bank realizes that unexpected hardship can cause borrowers to fall behind. It offers loan workouts based on the following hardships:

* Job loss, or out-of-state transfer
* Wage or hours cut
* Illness or disability
* Divorce
* A call to active duty from the military reserves

Flagstar bank provides several options:

Forbearance where payments are temporarily suspended in a formal plan that then allows you to catch up;
Reinstatement, where your arrearage is paid in a lump sum by a specific date;
Repayment, which allows you to catch up with a percentage of your arrearage each month, while keep current with new payments;
A partial claim, which uses funding from your mortgage insurer to bring your loan current;
Hope for Homeowners, if you meet qualifications for this government backed program;
A loan modification that will permanently change the terms of your loan to make it more affordable, adding missed payments to the loan balance, lowering the interest rate or extending repayment period.

If you can’t keep your home, Flagstar Bank may be able to arrange a short sale where it accepts less than the mortgage for your home or a Deed in Lieu of Foreclosure where it accepts title to your home instead of completing the foreclosure process.

To see if you qualify, log into your account, then fill out the online loan workout application.

You can also print out the form, completing it manually and fax it to (866) 234-9845 or mail it to:

Flagstar Bank
5151 Corporate Drive
Mail Stop S-142-3
Troy, MI 48098

Or call Mortgage Services toll free to talk with a specialist, (800) 968-7700 ext. 9780, M-F 8:30 a.m. — 5 p.m., Eastern time

For more specifics go to Flagstar Bank’s Mortgage Payment Relief Frequently Asked Questions

For additional trusted information visit the U.S. Department of Housing and Urban Development’s Web site or call the FHA Resource Center toll free at (800) 225-5342.