[Readyforbattle]

Glad to read your blog. My father applied for a loan modification on 12/11/08 we were told that it would take about 45 days. We were also told to fax a letter to the office of the president. After no response I called the other day and they said he didn’t qualify for a modification because he was with the Bank of NY. I talked to a supervisor today and told him that this loan was based on their good credit and no one EVEN VERIFIED their income. In fact it wasn’t even listed in the loan papers. The supervisor told me they weren’t responsible for misinformation on the loan papers, or the fraudulent appraisal (done by Land safe) as that was the broker’s part. This I don’t understand because as far as I can see Countrywide was the broker. I was also told another time there was no broker…different stories different times. The supervisor said nothing could be done because his payment doesn’t jump until 2013 so call back then. The other option is to move forward and try for a refinance…Duh that would cost approximately another $10,000. More money for Countrywide?? My mother passed on in July of 2008 so there has been a decrease in his income. As for stress killing you…this is a perfect example. I’m putting a copy of the hardship letter on here. As you can see by the info……they were totally ripped off. At this time my father is going to have to claim bankruptcy, just to keep up with this outrageous loan. I consider this whole situation elder abuse:

My father submitted a request for a loan modification via phone on the afternoon of December 11, 2008. I am writing this letter on his behalf due to his macular degeneration.

After the death of my mother we found that she had refinanced the loan on their home. They have lived in since the 1960’s. She refinanced with Countrywide Loans over the phone in February of 2006. She was 80 years old at the time and not in the best of health. If any of the family had seen this loan we would have put a stop to it. But she kept it from us because she knew she had made a big mistake and carried this burden with her to her grave.

In reviewing the loan papers the family was appalled at the conditions of the loan.

First of all her intention was to apply for a reverse mortgage. Countrywide said they didn’t qualify. They ended up giving them a Non Conf Arm Libor 7/1 with an interest rate of 6.3. Payments are $2077.07 interest only. This is more than 50% of their income. The $2501.55 P&I option is completely out of the question based on income. As I understand legitimate loans have a 28% ratio to income. Who ever approved this loan did not even bother to take down the income information, or did they take into consideration my parents were on a fixed income. Where did they think the money is going to come from once the payments jump to $2938.51?

Countrywide Home Loans had the house appraised at $642,000 by an appraiser from your approved list (Landsafe). In going back over 10 years their home has never been worth more than $580,000. In fact, when this loan was originated by Countrywide, in February 2006 the value of the home was approximately $540.000 NOT $642.00. Due to the drop in real estate prices its value is now at approximately $408.00 with prices expected to drop 21% in the next year.

There is a prepayment penalty which even if my father (who has great credit) wanted to refinance, it would cost him even more to pay off this loan. He has paid over $70,000 in interest plus close to $10,000 in closing costs, not a cent coming off of the principle.

My Father is 86 years old a retired veteran of WW11. He has lived his life with up most decorum and has never even received a parking ticket. He has worked all his life to have a decent retirement. At this point in his life I feel he should be able to live out his life (which his family has a history of longevity) without having to deal with the “disgusting” conditions of this loan.

I am asking on behalf of my father that this loan be modified; it is causing him extreme hardship both emotional and financial. I think that in reviewing the loan you will find that it was not above board and given to them by an unethical loan person who decided an elderly couple would be a good target to make a great commission. I hope this person can sleep at night.

cc: California State Attorney General