Countrywide Home Loans Foreclosure Issue

[SanitySeeker]

From Michigan. In a nutshell: I was in and out of the hospital due to preeclampsia and put on mind altering drugs. I did not know it and tried to handle our finances. My fault. We ended up behind on payments. Nobody knew it and we never received any notice until we got a letter of a pending sale of our home by an attorney. Called attorney but they refused to speak to me. Called Countrywide but only got voicemails. Nobody returned calls. Wrote to them, faxed them and finally put through to Workout Department. The rep there assessed many, many fees and drew up a repayment agreement. We were required to return it by 12/15/05. We sent it certified, return receipt requested. It was signed for and received on 12/12/05. On 1/18/06 we get a call from Countrywide saying there is a sale date on our home of 1/19/06 as they never received our signed agreement. I told them we had proof of delivery. I am told they will draw up another agreement. Tonight at 7pm I get a fax and am told we have 2 hours to sign the agreement and fax back to them or the home will be foreclosed. We about went nuts. They assessed even more fees. We were told teh "Foreclosure" would come off our credit report and then tonight told they would not remove it. Our payments went from $2800 to over $4000. Balance owed was around $365k, appraised at $510k. Agreement said it had to be returned to Countrywide within 9 days of date of agreement. Agreement was dated 1/24/06. Rep told us it HAD to be returned by 9pm tonight regardless. 9 day statement on the agreement (on there 2x) meant nothing. What are our rights? Can they just keep doing this to us? We tried to go with another mortgage company but since Countrywide now refuses to remove "Foreclosure" from our credit report, the options are not good. Should we get an attorney? We do not know how to pay for the increase in payments let alone an attorney. Can anyone give us advice?

[seniorjudge]

Originally Posted by SanitySeeker

From Michigan. In a nutshell: I was in and out of the hospital due to preeclampsia and put on mind altering drugs. I did not know it and tried to handle our finances. My fault. We ended up behind on payments. Nobody knew it and we never received any notice until we got a letter of a pending sale of our home by an attorney. Called attorney but they refused to speak to me. Called Countrywide but only got voicemails. Nobody returned calls. Wrote to them, faxed them and finally put through to Workout Department. The rep there assessed many, many fees and drew up a repayment agreement. We were required to return it by 12/15/05. We sent it certified, return receipt requested. It was signed for and received on 12/12/05. On 1/18/06 we get a call from Countrywide saying there is a sale date on our home of 1/19/06 as they never received our signed agreement. I told them we had proof of delivery. I am told they will draw up another agreement. Tonight at 7pm I get a fax and am told we have 2 hours to sign the agreement and fax back to them or the home will be foreclosed. We about went nuts. They assessed even more fees. We were told teh "Foreclosure" would come off our credit report and then tonight told they would not remove it. Our payments went from $2800 to over $4000. Balance owed was around $365k, appraised at $510k. Agreement said it had to be returned to Countrywide within 9 days of date of agreement. Agreement was dated 1/24/06. Rep told us it HAD to be returned by 9pm tonight regardless. 9 day statement on the agreement (on there 2x) meant nothing. What are our rights? Can they just keep doing this to us? We tried to go with another mortgage company but since Countrywide now refuses to remove "Foreclosure" from our credit report, the options are not good. Should we get an attorney? We do not know how to pay for the increase in payments let alone an attorney. Can anyone give us advice?

File bankruptcy**********

[SanitySeeker]

Forgot to mention, husband and I are both self employed. Bankruptcy not a good option.

[HUD-1]

Asking advice at this point seems like too little too late. Signing the Forbearance Plan knowing you cannot make the payments will just buy you a little time. If you think your income will increase in the future, then it makes sense to stall the fc until you are back to full income. If it is a permanent decrease in income, then there are tough choices to make, including whether to sell the house, rent rooms in the house etc. I do not think that there is a right to a 9 day turnaround on the forbearance plan signature. Why does this bother you? In thier eyes, this is the second go around on the forbearance plan. If you think it works sign and fax back...

[Blacky1]

Escalate this to their forebearance department. A Forebearance Agreement will more than likely be granted due to the extenuating circumstances. The lender would much rather hold the lien than have the property go in to foreclosure and sold at auction. Hopefully you are not to far along for this to be granted, however they are people and tend to be very understanding (in that particular department). The Federal Department of Housing and Urban Development REQUIRES the lender to work with you if you fall behind. Call Countrywide at 1-800-262-4218 to get this set up. Good Luck. I wish you the best.

[HUD-1]

A. Not a HUD/FHA loan. (Mortgage amount of $365k exceeds last year's national maximum of $312k). HUD does not require workouts on non-FHA loans.

B. The forbearance plan is set up, they just didn't like the quick turnaround.

C. Doesn't sound like they can meet the $4k per month required by the foorbearance plan.

[HomeGuru]

a deed in lieu**************.