Loan Modification Forum - LoanSafe.org - View Single Post - Home in Foreclosure due to CW error-Pls Help

rmanning · 08-19-2008, 06:53 AM

Hi everyone.
This is my first time posting. I have a crazy situation going on and I am hoping for some advice and/or direction.

In June 2007, we refi'd our house in GA. We used a mortgage broker. He got us a refi through BayRock Mtg. At the closing, a lawyer for BayRock came to our home for doc signing. During the signing, he presented us with all docs. In the pile was paperwork regarding our pre pay penelty. The paper that was shown to us stated 1% prepay if we sell/refi within 24 months. We understood that and were fine with it. He had us sign two different pages, all related to the 1%. We did read the papers in full! The lawyer told us that during a refi, we get the paperwork back via mail - didn't tell us why. Three weeks passed and no paperwork. Then we get a letter saying that our mtg. was bought by Countrywide. We called and asked Countrywide for the loan docs and was told they would send them. We never got them. In all honesty, we forgot about them, as we had a major family upheaval at the time.

Fast forward to now. We were relocated for our job, and are now living in PA. We have purchased another home in PA, through Countrywide. The house in GA has been on the market, and we have an offer coming in within the next week or so. Our relocation company sent us a form that showed what our positive equity would be when our house sold. I was shocked to see we would be $7k in the hole. Apparently, there is an additional pre pay penelty on the mortgage on the GA house that we were never told about, and were not aware of. It's 6 months interest, totaling about $7300. That is in addition to the 1%. We cannot pay this amount. Our house for sale is priced so that we would be able to pay off the loan in full, plus the 1% pre pay we knew about, and the property taxes. All closing costs and RE comm. is paid by the relo company. I feel like we were sucker punched in the gut. Had we known about this crazy prepay we would have never gone through with the refi.

So now we are stuck. Countrywide is saying that they just bought the loan, and have no control over what we were told and not told, and said that we really have no proof that we were not told about the additional pre pay. We do not have the additional money to cover the $7k. I know countrywide won't drop the additional prepay and just let us pay the 1%.

Any suggestions on how to handle this? I know I need to somehow go after the Broker and Lawyer for their deception, but we don't have time. We only have a few days to get this straightened out. If we can't get the $7k dropped or maybe added to our other mortgage with Countrywide, then we have to walk away from the home, let it be forclosed on, and destroy our credit.

Any help is greatly appreciated.

08-19-2008, 06:53 AM	#1 (permalink)
rmanning Junior Member Join Date: Aug 2008 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Home in Foreclosure due to CW error-Pls Help Hi everyone. This is my first time posting. I have a crazy situation going on and I am hoping for some advice and/or direction. In June 2007, we refi'd our house in GA. We used a mortgage broker. He got us a refi through BayRock Mtg. At the closing, a lawyer for BayRock came to our home for doc signing. During the signing, he presented us with all docs. In the pile was paperwork regarding our pre pay penelty. The paper that was shown to us stated 1% prepay if we sell/refi within 24 months. We understood that and were fine with it. He had us sign two different pages, all related to the 1%. We did read the papers in full! The lawyer told us that during a refi, we get the paperwork back via mail - didn't tell us why. Three weeks passed and no paperwork. Then we get a letter saying that our mtg. was bought by Countrywide. We called and asked Countrywide for the loan docs and was told they would send them. We never got them. In all honesty, we forgot about them, as we had a major family upheaval at the time. Fast forward to now. We were relocated for our job, and are now living in PA. We have purchased another home in PA, through Countrywide. The house in GA has been on the market, and we have an offer coming in within the next week or so. Our relocation company sent us a form that showed what our positive equity would be when our house sold. I was shocked to see we would be $7k in the hole. Apparently, there is an additional pre pay penelty on the mortgage on the GA house that we were never told about, and were not aware of. It's 6 months interest, totaling about $7300. That is in addition to the 1%. We cannot pay this amount. Our house for sale is priced so that we would be able to pay off the loan in full, plus the 1% pre pay we knew about, and the property taxes. All closing costs and RE comm. is paid by the relo company. I feel like we were sucker punched in the gut. Had we known about this crazy prepay we would have never gone through with the refi. So now we are stuck. Countrywide is saying that they just bought the loan, and have no control over what we were told and not told, and said that we really have no proof that we were not told about the additional pre pay. We do not have the additional money to cover the $7k. I know countrywide won't drop the additional prepay and just let us pay the 1%. Any suggestions on how to handle this? I know I need to somehow go after the Broker and Lawyer for their deception, but we don't have time. We only have a few days to get this straightened out. If we can't get the $7k dropped or maybe added to our other mortgage with Countrywide, then we have to walk away from the home, let it be forclosed on, and destroy our credit. Any help is greatly appreciated.