Qualified Written Request - What Power Does It Really Have

[59baer]

My question involves a foreclosure in the State of: WA Pierce County

I will provide a very short summary of what has been a very long story. We had been offered a temporary loan modification by Flagstar Bank for a rental property and we met all obligations of the agreement. Flagstar, however, did not conduct the necessary evaluation on making the modification permanent. So, at Flagstar's multiple verbal requests, we continued to make the modified payments beyond the end of the temporary agreement. In fact, at their request, we paid an additional 6 months and they continued to accept the payments.

Unfortunately, after 9 months of modified payments, Flagstar decided to cancel us out of the program. But then the got nasty. Flagstar declared the additional 6 months of payments (which were beyond the term of the written contract) were deemed partial payments and they declared us 6 months delinquent and quickly moved to push for foreclosure (and trashed our credit score in the process).

In response, we issued a rather detailed Qualified Written Request. They did receive the QWR. As I understand the requirements, Flagstar had 20 days to acknowledge the receipt of the QWR and 60 days to respond to the request. Both dates have flown by and Flagstar has yet to respond in any way to the QWR. What are the repurcussions for this failure and how do I pursue it?

Thanks,
Barry

[Mr. Knowitall]

Try contacting your state attorney general's office. As you've probably read, lenders are notorious for doing what you've described and the attorney generals of various states are presently trying to negotiate a settlement on these issues.

You can also take the documentation to a real estate lawyer who handles mortgage issues from the borrower's side, to have them reviewed with an eye toward possible litigation.