This comment is from a reader of my blog. I thought since it made perfect sense that I had to share it with everyone. Keep in mind this is a very experienced legal aid attorney who KNOWS what’s really going on. Thanks again April!
april wrote:
Didn’t Countrywide just announce that it had terminated some 12,000 employees?
Based on the information that I have, the press release numbers are sheer puff. What would be helpful is to know: the total number of loans that are in payment default for 30 days, 60 days, 90 days, 120-plus days; and the total # of loans in active foreclosure actions; the structure of the workouts being offered (how late payment, inspection fees, bpo charges, force placed insurance charges, foreclosure and other collection charges are being dealt with) and real numbers by state.
Without such transparency then Countrywide is just puff, puff, puffing away. Where is the training to do the loss mitigation? What loss mitigation guidelines are in place? Can borrowers get access to the loss mitigation options in writing? And, of course, we know that the homeowners are expected to waive and release every single legal right they have as part of the program and the homeowners are never afforded access to lawyer advice. So much for powerful consumers.
Good questions April. Now let’s see if we can get these answered. My guess is that this is a bunch of fluff also. The Countrywide propaganda continues.
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Didn’t Countrywide just announce that it had terminated some 12,000 employees? Based on the information that I have, the press release numbers are sheer puff. What would be helpful is to know: the total number of loans that are in payment default for 30 days, 60 days, 90 days, 120-plus days; and the total # of loans in active foreclosure actions; the structure of the workouts being offered (how late payment, inspection fees, bpo charges, force placed insurance charges, foreclosure and other collection charges are being dealt with) and real numbers by state. Without such transparency then Countrywide is just puff, puff, puffing away. Where is the training to do the loss mitigation? What loss mitigation guidelines are in place? Can borrowers get access to the loss mitigation options in writing? And, of course, we know that the homeowners are expected to waive and release every single legal right they have as part of the program and the homeowners are never afforded access to lawyer advice. So much for powerful consumers.
I had to publish this as a post. Great points as always. Thanks!
Hey Moe i just called countrywide and they said im prequalified for a loan modification just have to fax in documentation to them. Meanwhile about a month ago they said im ineligable because i would have to be a month late. HMMMMMMM
I agree with April. There are no guidelines and policies in place fro these loss mitigation departments. They basically can do what they want to whomever they want. Predatory servicing. They get em coming and they get em going. What a shame for the American people.
Hi Moe, just wanted to let you know that the countrywide “workout department” is located in Lancaster, Ca., and the extension is 4949.
swizz, what number did you call?
Countrywide to modify 82,000 exploding ARMS??
http://www.tradingmarkets.com/.site/news/Stock%20News/735225/
Great thanks Tracy! Did you call them and what was your results?
You’re prequalified! hmmmmmmmmmm…that will be the standard script when you call. What does that mean? PLEASE let me know what happens!
main number i think it ends in 0102 not home right now. Then asked for loss mitigation.
I got ahold of someone today.
All of a sudden it is easier to get through.
They asked a bunch of questions and calculated the average household expenses.
They only had 2 figures to choose from. Either the “lower” end which was around $2000 or the “higher” end which was around $4000.
Neither was accurate but $4000 was closest so I chose that one.
That left a negative of $239 after the new payment and a positive of $1000 after the pre-adjusted payment.
She could not give me an answer as to whether the borrowers qualified for a modification or not.
They will be contacted within 30 days with an answer.
I am now out of the loop.
Be sure and have the following information available when you call-
Gross income and net income on a weekly, bi-weekly and monthly basis
Total credit card payments
Total student loans
Total secured (car, 2nd mortgage) payments
The rest of the expenses are pre-calculated based on some form they have provided by the Dept. of Labor.
If there are arrearages they are going to want a payment.
I did this last week with another lender and they gave an approval on the spot.
Well i was told to call yesterday to make sure forms were received. But they didnt have them called again today and lady said to call back monday or tuesday and dont fax them again because that will just slow up the process. Figures!!!!
Great Im going to publish this as a blog post. You’re awesome!
Hey Moe,
I have used the countrywide workout department and found out recently that they ruined all our chances at refinancing. Last year we became late by 60 days and we went through the so called “work out” department. Which seemed like a great solution. If we paid an inceased amount for 6 months they agreed to role our past due amount into our existing mortgage priciple. At five months they called us and said we were done with our workout agreement. Unfortunately now, this year, our ARM adjusted and our payment went from 2,700.00 to 3,500.00 and we cannot refinance because of our past that they report as 60 days late for a total of nine months while we were paying our workout agreement. How ironic?!? Now we are stuck paying our high interest rates until we hit a year past our last late payment. That will be May 2008. Thanks countrywide. My word of advise…. don’t use the workout department because they will continue to report you to the credit bureaus as late until the contract is up. For us it was 9 months of 60 days late on our credit report. No one will refinance us. We have almost 50% equity in our home. FHA Secure is only for “good credit rating” if we had great credit we wouldn’t need help. I should have barrowed the money from my parents!
Sorry to hear about your circumstance and dealing with Countrywide. Have your tried calling http://www.NACA.com. They now have a ‘special’ deal with them and maybe they can advocate your case for you. I also suggest speaking an attorney that can assist you. You may have an unlawful agreement and you may have signed your rights away when they gave you that bogus deal. You need to get that loan modified and you need to raise heel until you do. Call NACA and please report back with what they tell you. My eyes are on them and Countrywides new relationship and I need feedback to see if they are REALLY assisting homeowners such as yourself.
I read the guidelines at NACA and it looked like my borrower’s loan amount exeeded the allowable loan limits for California.
Maybe that’s just for new loans, I will give them a call. Thanks.
After re-reading the CW PR and reading between the lines, it sounds like they are poised to do even more refinances and make even more money.
Imagine if they become the only lender to offer the new FHA secure program and only on a retail level.
I thought FHA secure was not FICO sensitive?
You’re welcome!
Yes, these lenders will have a MONOPOLY and that is what we DO NOT want. We need to put the power back in the peoples hands.
All FHA loans are not FICO driven. I always considered FHA to be common sense loans. Before the FHA Secure, FHA would not allow lates on your mortgage but with the FHA Secure you can.
Has anyone had any good dealings with CW Hope dept? Does having a lawyer assist you with the loan modification process really make a difference? Thanks
A lawyer can help. If you qualify, I would seek legal aid or a pro bono attorney. If not then seek an attorney first and then go from there. There have been some mild successes stories but if you look at my blog and posts, they are far and few in between. Doesn’t mean you can’t get one. So work hard and out your best foot forward and get ready to fight!
Countrywide is very clever in their modification agreements they have you sign, so read it carefully. Basically the attorney I had look at it said the clause in “fine print” stated they can make any changes, any time, at their will. As for you Tim, try contacting David Fyke, he is the supervisor of the HOPE team and is by far the ONLY nice person to deal with there. I cannot say he can for sure help you, but he goes out of his way to try (seriously). Unfortunately, his clout was not enough to assist my family, but I am willing to help anyone I can avoid what we are going thru!! His phone # is 805-577-3688.
Wow, that is great information. I’m sure Davids phone is going to blow up now! Thanks, I think I like you. Please stick around
Moe, I will stick around as long as I still have a roof over my head, getting down to 36 days give or take. Anyway I can help anyone else from going thru this I WILL!!!
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My mortgage is coming up for a change in the ARM in October,I have a 3rd party from California that has contacted me saying I need his representation in order to get a modification, that Countrywide will not work with me unless I am late, as of yet we have not had a late fee we just want do not the ARM that is due to go to 9.50 when we already stretched to the max. The rep is from Homestead Modification Services who says the time is now to get this process started. His services come with a fee, but guarntees me that they refund $995.00 if they are not succesfull. Any ideas?
Never heard of them and would never recommend using a company like this, unless they are a law firm or non-profit. Use an attorney if you decide to hire a third party, plus you may have legal viloations on your loan that you can use as leverage against Countrywide.
I guess if any of those employees fired by Countrywide, have homes with Countrywide, they will be seeking modifications as well. Looks as though Countrywide is shooting themselves in the foot. Surely they have enough work for these individual, since they have quite a few loans in default…. you think???
I forgot to mention, I sent a request to Countrywide asking for Loan documents/package, (certified mail) under RESPA procedures…. They never responded.