Replies to This Discussion

Permalink Reply by Celeste ODea on April 6, 2012 at 6:11am

You're in for a loooooong wait, Mary Ann.  I've had an offer in with Flagstar since June 2011 and we've finally just got to the Short Sale stage.  Flagstar has many review processes that they go thru and are the slowest ones on earth to do a short sale.  During this time, the seller's documents MUST be submitted monthly and the documents updated every 90 days.  If this is not done, the file is set aside and then re-reviewed again.  Very, very inefficient system.  Best of luck - patience is a virtue!  I'm lucky because our buyer have stuck with it.

Permalink Reply by Celeste ODea on July 21, 2012 at 2:19pm

Halleluiah! Just received my approval letter from Flagstar after 1 years and 1 month of waiting!! We are going to rush to settlement before Flagstar does something crazy. I've head that there is a "streamline short sale process" with Flagstar but, funny, no one knows about it.

When you said they allowed the property to go to foreclosure, what do you mean? Is it just in the foreclosure process or is there an auction date? Short sales don't stop the foreclosure process. It continues... until you get the letter as to when it will be auctioned off and then you have another challenge to get it stopped! Just prepare for a lengthy process and the seller MUST submit bank statements and paystubs immediately or they put the file on hold.

I swore I wouldn't do another Flagstar loan, but just might have to, so I'm on the hunt for this new "streamline process" that they are suppose to have.

Permalink Reply by Bryant Tutas on July 21, 2012 at 5:02pm

Good for you Celeste! I too just received an approval on a Flagstar short sale. It's an FHA PFS. Took almost 7 months. Most of that time was trying to get out of document collection. I must have sent in over 1,000 pieces of paper during the time. 3 borrowers. Flagstar was my worse short sale experience to date.

Permalink Reply by Celeste ODea on July 21, 2012 at 6:35pm

Actually, mine was too! They made an error on the ATP and only gave us 1 month to sell the property (although I've had a contract for a year).  With the wrong date on the ATP it took away the $1,000 seller incentive so I had to fight with HUD and Flagstar to correct the ATP and issue a revised approval letter. 

Was your 7 months the streamline program???  I'm still trying to find out about that because I have another listing and Flagstar is the bank.  Waiting a year is killing my statistics!!

Permalink Reply by Tom Braunagel on November 14, 2012 at 11:22am

Bank of America has a streamline program.... not aware of Flagstar however...