Flagstar Bank Loan Modification

Flagstar Bank is one of the largest banks in the Midwest and a leading mortgage lender. Although most of its activity is in wholesale mortgages, it also originates personal and sub-prime loans and has recently started giving mortgage assistance to delinquent borrowers. This is to limit the number of foreclosures on record, which has been on the rise since the recent real estate bubble.

Many Flagstar borrowers are looking into loan modification, a process that restructures a current mortgage to better suit the borrower’s situation. Mortgage modification also stops foreclosure proceedings, giving the borrower time to get current while working out better rates. To qualify for a Flagstar Bank loan modification, one has to be in a valid financial hardship such as job loss, medical emergencies, or a recent death in the family. Other requirements include proof of income (such as pay stubs or employment certificates), bank statements, and tax forms from the last two years.

Flagstar Bank accepts direct mortgage modification applications, but to get better results, it’s best to work with a loan modification attorney. A lawyer can help ensure faster processing and use current lending laws to strengthen negotiations. A good loan modification attorney should have a good track record and a positive working relationship with Flagstar Bank.

There are also other alternatives for borrowers who don’t qualify for a Flagstar Bank mortgage modification. If the mortgage is still current, a better option may be refinancing, or taking out a new loan to pay off the current one. This helps the borrower take advantage of better rates without having to wait out the loan modification process.