Outta Luck for Modification or What?

[Louise]

I am a customer of Countrywide and have been for the past 9 years. Four years ago we refinanced our home to an ARM of 5.135% that would adjust in 10 years, in 2013. Since Hurricane Katrina, we have run into a real financial situation and Countrywide has agreed to a loan modification. Thank goodness that they did because we are just 6 weeks away from forelosure. HOWEVER - they have increaded our interest rate to 7.125%. Making our payment go up an additional $350. After asking them about this change in interest rate, their response to me was when my loan would be due to adjust, we would not be able to afford the payments. My response to the is that our loan is not set to adjust for 6 years in 2013. We have not signed and returned their paperwork along with the $16,000 good faith payment. Do you have any suggestions ... or should we just be thankful that they agreed to this modification?

[Moe Bedard]

Thanks for joining LoanSafe.org and your post here!

My suggestion is that that is not a "good" deal and you can most likely get better. Do you have $16,000 or is that reaaally stretching it and can you afford this new payment?

As I ALWAYS mention, I am not here to bash lenders but Countrywide and the Countrywide Hope Department is starting to really get under my skin. Here you went through Katrina and now you are being rail roaded to sign a loan modification that is "higher" then where your current interest rate is now on your mortgage. It as if they are trying to "force" you to take a deal that is worse then you have now so they can "LOCK" you in a higher rate.

I would suggest that if you do have this $16,000 and you do "owe" it to them, then that is reality. But do not take this higher percentage rate. Tell them to stick that where the sun don't shine because in my honest opinion based on what you posted
here , they are taking "advantage" of you. Over the next couple of years and soon there will be more option for borrowers to refinance out of these mortgages.

You can counter the offer they gave you and tell them you cannot and will not sign something that will put you in a worse position then you are now but you will pay them what you owe.

If you'd like, Id be happy to look through this paperwork and give you my opinons.

[Louise]

$16,000 is what we agreeded to pay Countrywide as part of this modification. Is it a stretch - yes but they asked us how much we could give them "right now" and that is the amount we thought was fair since we are so far in the rears with them. My problem was the change it in interest rate and their reasoning behind it. I told her that it is not scheduled to readjust till July 2013. As far as the monthly payment, Countrywide would not even agree to the modification until we could show them that we would have the ablility to pay the monthly mortgage. I can certainly understand that though!

I will call my workout negotiator now. Maybe I can get them to rethink this interest rate change. I really appreciate your information and opinion.

[Moe Bedard]

No problem. Remember this is much like a game of cards and you are sitting at the table and Countrywide is the dealer. Don't reveal all your cards because they will play on that and use that to take the whole pot.

I wouldn't really ask for them to reconsider. I would do what we call in poker as a "bluff". Tell them that you have been advised by a legal expert not to take this deal and that you will, if they "keep" the rate at where it's at and if not then you are fully prepared to take your loses, walk away and move on so they can keep the house. This will get them motivated to work on "your" terms.

You seem like a nice lady and I'm sure this sounds a little shady or unethical. It's not Louise, it's reality and if you want to "protect" yourself the you need to brush up on your poker skils Remember it is Countrywide who stands to lose if they refuse to play your game with your house, your finances and your life. Take control out of their hands and put it back in yours, nicely of course.

Best of luck to you!

[Louise]

I am a lousy poker player however I will keep you posted. I am waiting for a call back right now. Thank you!

[Louise]

Good news! I am not a poker player but I think I am a sweet talker. Spoke with Countrywide Hope Department and they are going to keep the same terms of my mortage instead of raising the interest rate to 7.125%. My old ARM interest rate will remain at 5.375% until August 1 2013. That phone call just saved me $271.18 per month.

I did follow thru with your idea. I told them that I had spoke to legal representation and the terms of our modification were not correct. There was no logical reason to raise our interest rate. I asked them to please review my terms again. IT WORKED. They are preparing new paper work now.

If I could give a suggestion to anyone needing a loan modification is to (1) have "some" money to show good faith to put towards your past due balance and (2) show that you have enough monthly income to be able to afford your new mortgage payment in the future. Even if it is a temporary part-time job. I am so glad that I found your new website. It helped me follow thru today ... THANK YOU!

Question? Is the Countrywide Hope Department really a Countrywide Department or is it outsourced? I was told that they had to get the "investors approval" many times. Just a question.

[Moe Bedard]

That is fantastic news Louise! I love when I hear news that my websites help them and especially when in dealing with the Countrywide Hope Department because I know they can be rough to deal with.

You're a great poker player and you just won the hand of your life

As far as I know Countrywide does not outscore loan workouts. There is some kind of mysterious investor appoval process involved. But I am not sure how that works. I know loss mitigation is much like underwriting for a mortgage. It's a process where they package and determine if you will "qualify" for a loan modification based on their secret guidelines. Once that is done it is sent for final approval and blessings.

Just make sure to read the TERMS very well and make sure it is what was represented to you over the phone.

Best of luck and please come back with updates in the future!

[Moe Bedard]

Here is a press release thta just came out form Countrywide and it looks like they are trying to change the image that they have. I will continue to post the facts and I hope Countrywide helps more homeowners stop foreclosure like Louise above. I truly hope they do because they are the largest lender in the country and they can really make a big difference in our economy if they modified more loans of distressed borrowers.

Countrywide’s Home Ownership Preservation Program Offers Foreclosure Prevention Strategies

Download this press release as an Adobe PDF document.

Countrywide borrowers avoid foreclosure 70 percent of the time when they engage in loan workouts.

Calabasas, CA (Vocus/PRWeb) September 2, 2007 -- Help is readily available for homeowners who are experiencing difficulty meeting their monthly home loan mortgage payment. Countrywide Financial Corporation (NYSE:CFC), through its Home Ownership Preservation Program, recommends several strategies that may enable borrowers to manage their mortgages, avoid foreclosure and preserve their most valuable asset, their home.

Countrywide understands that unexpected life events can negatively impact a person’s financial situation. The top three reasons for foreclosure are curtailment of income, divorce and major illness; events that can affect anyone at anytime “Countrywide understands that unexpected life events can negatively impact a person’s financial situation. The top three reasons for foreclosure are curtailment of income, divorce and major illness; events that can affect anyone at anytime,” said Michael Gross, Managing Director, Loan Administration of Countrywide Home Loans, Inc. “Additionally, factors such as rising interest rates on adjustable-rate mortgages combined with the inability to refinance due to market conditions are putting an additional strain on borrowers.”

Through its homeownership preservation program, Countrywide reaches out to distressed homeowners in their own communities by sending workout teams to meet face-to-face with borrowers. Seminars are also hosted around the country to help borrowers avoid foreclosure, teach foreclosure scam awareness and in some instances offer loan workouts on-site. To date, Countrywide has helped over 35,000 homeowners keep their homes.

Here are some steps borrowers can follow when they are experiencing difficulty or concern about meeting their monthly mortgage payment:
If borrowers are delinquent or know that they will be, they need to contact their lender immediately. The sooner the lender is contacted, the better the chance of developing a successful home retention plan. While each situation is unique, most lenders may be able to offer one of the following options:

• Temporarily delaying payments (also known as “Forbearance”)—a formal arrangement that either suspends or reduces monthly payments until the borrower recovers from the financial setback.
• Recovering from missed payments (also known as “Repayment Plan”)—a written agreement between the borrower and the lender outlining how to handle missed payments. It involves spreading the delinquent amount over several months (in addition to regular payments) until the loan is brought current.
• Restructuring the loan (also known as “Modification”)—a temporary or permanent change in one or more of the loan terms in order to get the payment down to a more affordable amount. Methods include changing the loan’s interest rate, extending the time available to repay or re-amortizing the loan balance. This option is not available on all loan products.
• Refinancing the home loan—pays off the old loan with a new loan that has different terms more suited to present circumstances, designed to establish a lower monthly payment amount than the original loan.
• When staying is not an option—if financial circumstances have dramatically changed and the borrower can no longer afford the home, needs to relocate or just wants a fresh start, there are options available. Early understanding of this will aid in the ability to sell the home and avoid a foreclosure. If the loan balance exceeds the value of the home, early contact with the lender will help determine if there is a possibility to accept a reduced payoff amount.

In order to determine the best short- and long-term solutions, borrowers should be prepared to provide the following information when contacting their lender:

• Authorization--If the borrower is using a representative, like a non-profit housing counselor, attorney or a trusted friend or relative, lenders will need a written authorization signed by the borrower granting permission for the mortgage company to communicate personal financial information to the representative.
• Account information–Lenders will need basic information, such as the loan number, property address and the borrower’s current mailing address.
• Employment/income/expenses–Information about the borrower’s current employment status, as well as the current income for all obligated borrowers or individuals contributing to the household’s monthly budget. Usually, the lender will want to see evidence of two months income and a list of the household’s monthly expenses to help determine whether the income will be sufficient to cover the borrower’s current obligations.
• Pertinent assets–Information about the current value of other assets available to the borrower including other real estate, bank accounts, investments or retirement funds. The borrower will also be asked about the value of any vehicles owned plus the amounts owed on the vehicles.
• Personal circumstances impacting the ability to repay–The borrower should provide information concerning any personal circumstances that are currently limiting the borrower’s ability to pay the mortgage, for example, illness, loss of employment, change in earnings, divorce or death of a wage earner.
• Status of the property–If the property is for sale, the lender will need to know the realtor’s name and contact number and whether or not the borrower currently occupies the property or holds it as an investment (e.g., rental or otherwise vacant).
• Bankruptcy–If the borrower has filed for bankruptcy protection, creditors must stop any attempt to collect outstanding debts. If the borrower or the borrower’s representative presents a specific repayment proposal to a creditor, the lender is permitted to either accept or deny that specific proposal. If the lender does not accept the proposal, the company is unable to offer alternatives as this may be viewed as an attempt to collect the debt. It is usually best that borrowers who are subject to bankruptcy protection use their bankruptcy counsel/attorney to assist in debt related negotiations.

Beware of foreclosure “rescue” scams. Unfortunately, scam artists seek to prey on the desperation of people who are willing to consider nearly any option to keep their home. Borrowers need to be wary as they pursue ways to avoid foreclosure. Borrowers should:

• Make sure credit counselors work for a HUD-approved organization.
• Beware of anyone who offers to buy their home and “help” buy it back later.
• Avoid offers that require a payment for counseling and other help.
• Not sell their home without first talking to their lender.

Borrowers also can contact the nonprofit Homeownership Preservation Foundation (HPF) at 1-888-995-HOPE (888-995-4673) for free foreclosure prevention counseling. The cornerstone service of the Minneapolis-based HPF, the Homeowner's HOPE™ hotline is a free 24/7 counseling service that connects borrowers with expert HUD-approved counselors to help find a solution to overcome financial difficulties and possibly avoid foreclosure. For more information about HPF or the Homeowner’s HOPE™ hotline, visit http://www.995hope.org
For additional foreclosure prevention tools and resources for homeowners, visit Countrywide's H.O.M.E. (Home Ownership Mortgage Education) web site at http://www.HomeByCountrywide.com

About Countrywide Financial Corporation

Founded in 1969, Countrywide Financial Corporation is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services prime and nonprime loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. For more information about the Company, visit Countrywide's website at http://www.countrywide.com

[Moe Bedard]

"At Countrywide, helping customers sustain homeownership is equally important as helping them achieve the dream of homeownership. The Home Retention Division (HRD) - formally named the Loss Mitigation group - actively helps borrowers who are having difficulties making their monthly payments. Within HRD, the Countrywide HOPE Team pursues its mission of: Helping homeowners, Offering solutions, Preventing foreclosures, and Envisioning success. This year, as of July 2007, HRD customer service representatives have successfully helped 35,000 customers find solutions to their issues so they could avoid foreclosure.

Here are some examples of the workout scenarios the Countrywide HOPE Team creates each day to help our customers:

* One family moved into the home they purchased, only to discover that the previous owner had not disclosed that the property contained mold. Members of the family became ill with mold-related conditions, and unexpected medical costs left them temporarily unable to cover their mortgage payments. Countrywide was able to offer a rolling 90-day forbearance to allow the family time to get back on their feet. Their case will continue to be evaluated.


* As parents of children that suffer from a rare eye cancer, one borrower family was facing financial difficulties. The mother is the care provider for the children and is unable to work outside the home, and the father’s business was affected by the hurricanes. After evaluating their account, Countrywide was able to modify their 10.875% adjustable rate loan to a fixed rate loan of 8.700%.


* A borrower’s son and her husband both passed away. In addition to dealing with her devastating loss, she was facing financial problems covering the costs of both funerals. She accepted Countrywide’s offer of a loan modification that capitalized five delinquent payments.


* One borrower’s son became very ill in December 2006. In order to properly care for her son, she needed to be home more and could not work full time. The borrower was the only one contributing financially to the household, she was facing mounting medical bills and she had no way to bring in additional income. She accepted Countrywide’s offer of a loan modification that capitalized six delinquent payments.


These stories are just a few examples of the many ways that our Home Retention Division and HOPE Team members demonstrate their powerful impact of fulfilling Countrywide’s mission of helping customers achieve and preserve the dream of homeownership. Congratulations and keep up the good work."
__________________

[pbbobkanobi]

Here is a good read on Loan Modifications and why isome investors are worried.

http://www.cnbc.com/id/20726992/for/cnbc

[Moe Bedard]

Yes, good read. I'm going to address this article in a post right now as a matter of fact Thanks for the contribution!

[Nekocat]

I have a Countrywide ARM mortgage that has neg am and it was sold to me by a mortgage broker that did not fully explain what it was. I take responsibility for not asking more pointed questions and getting a truth in lending statement which until now I did not know I was entitled to receiving in 3 business days (hindsight is 20/20) but I was a fool and trusted the professional specialists, the realtor and the broker. What I fool I was!!!! (I am kicking myself and so mad at myself I cannot tell you how upset I am) I knew once I was sent the final schedule of payments after all was signed and done, where I discovered how the neg am ARM REALLY worked, that I knew we had made a HUGE mistake. I have $34K prepayment penalty for the 1st year and it has been a long year waiting to refinance, except now I cannot refinance as when we bought the triplex, we learned while in escrow ($25K put down from savings and $107K put down from the sale of our townhouse) that the triplex loan would not be approved because it was legally only supposed to be a duplex. We had sellers who were threatening to sue us and keep the money we put down if we didn't perform. So the lender said they would loan us the money but req'd us to put another 10 percent down, which our realtor and broker loaned to us, but doctored a fake gift letter. I think I have a case of fraud here by the broker, I may want to figure out how to sue him, but my main focus right now is to get out of this toxic loan. Now that the year is almost up (Dec 21, 2007) I am trying to refinance, BUT bc the property is not technically a triplex, but a duplex, the companies I am trying to refinance with say that is a problem. So now I can't refinance and the neg am is stripping our equity!!! this is a ticking time bomb and I tried calling Countrywide who offered to refi me into another ARM that caps at 13.75% which I said no way to. I found out about this non-profit organization called NACA www.naca.com, they have a homesave program. They just started doing refinance modifications, they represent homeowners who need help. I am going to try them and see if I can do something soon before it gets out of hand.

[Moe Bedard]

In another stellar business move by Countrywide, Mr. Mozilo announced as an effort to cut cost and increase the bottom line, they will be outsourcing loss mitigation efforts to call centers in India.

I found this in a LA Times article and have yet to verify if this is in fact true. If it is, then Countrywide borrowers are in serious trouble.

Foreclosure help is coming... from India

Update: Commenter Cal points out a headline we missed today: Countrywide said it is hiring as part of its foreclosure prevention efforts, and the new jobs are in India -- yes, India, not Indiana: From the company's presentation today in San Francisco: "Increased staffing levels in India for home retention and loss mitigation efforts, shifting additional costs to an area with lower labor expense."
News item from Reuters: "Countrywide Chief Executive Angelo Mozilo said Tuesday the largest U.S. mortgage lender is 'out' of the subprime business, apart from offering home loans eligible for purchase by government-sponsored enterprises."

If this is true, then this an unbelievably stupid move by Angelo Mozilo. Something as delicate as handling delinquent homeowners should never be outsourced to a foreign country.

Mortgage loss mitigation is a delicate operation and should be handled with the utmost care and attention in order for these departments to be effective and accomplish what they are designed to do, "mitigate loss." Dealing with their American loss mitigation operation is pretty much a joke and I can imagine the run around Countrywide borrowers will get now.

Come on Mr. Mozilo! If you expect to continue lending and being an industry leader in a rapidly shrinking mortgage market, then you I suggest you treat the customers/borrowers you have now with respect and empathy like when you sold them the loan they now can't afford.

You are in the public spotlight big time and you are making some pretty lame move on the PR front!

[Moe Bedard]

but I was a fool and trusted the professional specialists, the realtor and the broker. What I fool I was!!!! (I am kicking myself and so mad at myself I cannot tell you how upset I am)

You're not a fool. You relied on a licensed professional to educate and place you in the best and most appropriate mortgage for your situation. Unfortunatley, many loans are sold at the benefit of the loan officer and how much commission they will make. You are not expected to know the mortgage products and how they work. The bummer with that is that people can easily be taken advantage of by these snake oil salesman.

You are not alone my friend!

I knew once I was sent the final schedule of payments after all was signed and done, where I discovered how the neg am ARM REALLY worked, that I knew we had made a HUGE mistake. I have $34K prepayment penalty for the 1st year and it has been a long year waiting to refinance,

Neg Am's suck and are only good in special situations. That prepay doesn't suprise me. The bigger the prepay, the more money your loan officer made off of your loan. Looks like that LO paid for him beemer with your mortgage. Don't worry, it just got reposessed along with the foreclosure on his beach house.

except now I cannot refinance as when we bought the triplex, we learned while in escrow ($25K put down from savings and $107K put down from the sale of our townhouse) that the triplex loan would not be approved because it was legally only supposed to be a duplex. We had sellers who were threatening to sue us and keep the money we put down if we didn't perform.

If your Realtor did their job, then you should have had a loan contingency in there for times just like that. It's not your fault that you thought you were buying a triplex and then it turned out to be a duplex. Sellers always threaten but have VERY LITTLE recourse in those situation. Only threats.

So the lender said they would loan us the money but req'd us to put another 10 percent down, which our realtor and broker loaned to us, but doctored a fake gift letter.

Wait a minute right there Your Realtor and broker drafted a fake gift letter! Tell me more about this please???????????????? This can be your way out and you may have a predatory lending / fraud case.

I think I have a case of fraud here by the broker, I may want to figure out how to sue him, but my main focus right now is to get out of this toxic loan.

That may be your way out of this toxic loan buddy!

898

Now that the year is almost up (Dec 21, 2007) I am trying to refinance, BUT bc the property is not technically a triplex, but a duplex, the companies I am trying to refinance with say that is a problem.

Of couse that is the problem.

So now I can't refinance and the neg am is stripping our equity!!! this is a ticking time bomb and I tried calling Countrywide who offered to refi me into another ARM that caps at 13.75% which I said no way to.

That doesn't suprise me.

I found out about this non-profit organization called NACA www.naca.com, they have a homesave program. They just started doing refinance modifications, they represent homeowners who need help. I am going to try them and see if I can do something soon before it gets out of hand.

Please don't place your eggs all in the NACA basket. I heard it is a very tough to get approved and to get answers. It can take months so make sure you explore other options and if you do get somewhere with them, then please let me know.

Best of luck to you!

[evel1999]

Business news



Oct. 23, 2007, 10:25AM
Countrywide to modify $16B in loans


By ALEX VEIGA AP Business Writer
© 2007 The Associated Press

[Moe Bedard]

It's all a bunch of fluff. If your read the fine print, they are actually only going to modify 6.2 billion. Here is a good question form a legal aid attorney that was on my blog.

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.

[evel1999]

That doesn't surprise me that it is all Fluff about Countrywide. I think you are right Moe.

Countrywide may wind up in bankruptcy and what happens to all of these loans backlogged needing to be modified.

Modifications are very hard to get approved and very few being done. Negitive arms would not even be considered and Countrywide probably did a slew of those.

[Moe Bedard]

https://www.naca.com/press/pressRelease20071024.jsp

Countrywide and NACA Announce Groundbreaking Initiative to Help Borrowers Preserve Homeownership

Washington, DC (October 24, 2007) -- Countrywide Financial Corporation (NYSE:CFC) and the Neighborhood Assistance Corporation of America (NACA) announce a joint initiative aimed at their common goal of preserving homeownership. NACA will assist Countrywide borrowers facing financial difficulties in communities across the country to identify solutions to help them save their homes.

Representatives of NACA and Countrywide, as well as several borrowers receiving help through this program, will comment on the new initiative at a news conference on Wednesday, October 24, at 2:00 pm in the Edward R. Murrow Room of the National Press Club.

While there is a lot of talk about the at-risk homeowners, NACA and Countrywide have met and developed an effective solution for some borrowers facing a crisis. Under this program, homeowners have a “waterfall” of options, from a payment plan, to modification, to refinancing and finally to restructuring. Homeowners will be able to achieve a mortgage program that provides a payment they can afford over the long-term.

The agreement leverages Countrywide’s market leading home retention programs and NACA’s unique model for counseling borrowers. The program is based on NACA’s comprehensive Home Save approach that includes individual counseling and development of a documented Affordability Budget. NACA will work with Countrywide borrowers who come to NACA for assistance to develop the most effective plan to save their homes, then submit the plan to Countrywide for approval and implementation.

“NACA’s Home Save approach provides unprecedented options to working people at risk of foreclosure.” states NACA CEO Bruce Marks. “The Countrywide agreement has already had a huge impact with homeowners having their loans restructured to as low as five percent.”

“Both Countrywide and NACA want to make homeownership a reality and homeownership preservation a priority,” said Sandor Samuels, Executive Managing Director of Countrywide. “NACA’s methodical approach to counseling and family budgeting will be invaluable to Countrywide borrowers who are struggling to keep their homes.”

Homeowners like Darrell Beringer agree. “I was about to lose my house because I couldn’t pay the higher interest rate,” he said. “The arrangement between NACA and Countrywide allows us to stay in our home and in the community that we call our own.”

Currently, Countrywide has 2,700 home retention specialists who work directly with borrowers, and works closely with dozens of borrower counseling organizations. The NACA agreement will enable Countrywide to leverage additional resources of NACA’s 33 local offices across the country to help more of its borrowers remain in their homes.

“In my discussions with executives at Countrywide, it became very apparent that they are serious about home preservation,” said Bruce Marks, Chief Executive Officer, Neighborhood Assistance Corporation of America. “I hope that this groundbreaking alliance between NACA and Countrywide will provide a framework for other lenders around the country to help their customers maintain their dream of homeownership .”

The struggle for many lenders has been communicating with the borrower. Although Countrywide contacts borrowers via telephone and mail, many borrowers avoid speaking with their lender. Working with nonprofit counseling agencies such as NACA provides borrowers an alternative form of assistance.

Key policymakers, including Senate Banking, Housing and Urban Affairs Committee Chair Chris Dodd (D-CT) and House Financial Services Committee Chair Barney Frank (D-MA), have called for these kinds of alliances and cooperative efforts to find solutions that keep as many people as possible in their homes.

Borrowers seeking foreclosure prevention tools and resources can:

• Visit Countrywide's H.O.M.E. (Home Ownership Mortgage Education) web site at www.HomeByCountrywide.com or call 1-800-866-6650.
• Visit NACA at www.naca.com or call 1-888-302-NACA.

About Countrywide Financial
Founded in 1969, Countrywide Financial Corporation is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services prime and nonprime loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. For more information about the Company, visit Countrywide's website at www.countrywide.com.

About the Neighborhood Assistance Corporation of America (www.naca.com)
NACA, a national non-profit community advocacy and homeownership organization established in 1988, has been the lead organization in the fight to identify, expose, and oppose predatory lending and exploitive lending practices. NACA first exposed Fleet Bank’s lending abuses in 1991, followed by numerous other campaigns against companies that victimize low- and moderate-income people pursuing the dream of homeownership.

NACA provides one mortgage which is the best in the country requiring no downpayment, no closing costs, no points, no fees, no perfect credit at a below interest rate currently 5.375% 30 year fixed. NACA has $10 Billion committed to this mortgage with more than 30 offices across the country providing working people and an unmatched program and national model for doing mortgage lending the right way. NACA’s program and advocacy have been featured in the national and local media nationwide. In April 2007, in response to the subprime lending crisis, NACA committed One Billion dollars to refinance homeowners out of their unaffordable loans, constituting the largest commitment to homeowners to date.

[Nekocat]

thanks for this Moe

[Delilah]

I am currently in Countrywide's Loan Modification process. Although, I'm feeling rather uneasy as I've spoken with them 3 times within the last month and each time the story changes and I've been assigned to a different "Negotiator". The first time I spoke with them, I was told that I had been automatically approved for a loan modification and to expect to receive documents via Fed Ex to sign, notorize, and send back. The documents would contain information as to where and when to send my negotiated initial payment. I was also told that the foreclosure would be put on hold. This was early October. I waited a week and never received any documents. I called back and was transferred to my "Negotiator", who then told me that instead of being given an actual Loan Modificiation, I was being put on a 3 month trial period, in which I was to send the intitial down payment, then make a monthly payment for 3 months. At the end of the 3 months, I would then be considered for a Loan Modification, as long as I held up my end of the agreement. She asked for a fax number to fax me the documents, and to sign and return. I waited another week and never received the faxed documents. I called again, and was told I was reassigned to a different "Negotiator". The new "Negotiator" said she had just recieved my file and did not have my fax #. I gave it to her and said she would fax me the documents that same day, and gave me information to send the down payment via Western Union, and that my 3 month trial period would begin 12/1 thru 2/1, and then not to make another payment until I heard back from the regarding the Loan Modification. I never received the fax. I called again yesterday and was informed that once again I had been reassigned to a new "Negotiator", although she was not available to speak to me at that time. The rep I spoke to informed me that I was granted a Loan Modification and that I was no longer being put into a 3 month trial period. She informed me that they are streamlining their process to reduce the time to process Loan Modifications. She explained that my file was just pending final approval from management and that it was in the final stages and I should received documents via Fed Ex by next Wednesday (11/7). She mentioned that the sale date of my home was 11/8. This put me in shear panic as that is just a week away and I was with the understanding that the foreclosure had been put on hold. I was told that the foreclosure process is not stopped until the Loan Modification is approved. I asked to speak to a Manager, however my "Negotiator's" Manager was not available, so I was transferred to the CSR Manager. I expressed to her my uneasiness due to the fact that the story changes each time I call and now feel like this was all stahl tactics on their part to intentionally foreclose on my home. She told me that they don't want my house and that it is normal for the file to go thru 3 "Negotiators", then obtain 3 Management approvals before the Loan Modification is final. She indicated that it has already received the 1st Manager's approval and is now pending the 2nd Manager's approval. She could not provide me with anything in writing to this effect. She said my file was in the final stages and should be final by next Wednesday, 11/7. Again I told her that is just 1 day before the sale date. I was told they have up to 2 hours before the sale date to cancel the foreclosure. They enter information into a database that automatically notifies cancelation of forecloure to the investor, attorney, and County. At this point, I don't know what to believe or what to do. Time is quickly running out. After reading several negative blogs about Countrywide's business ethics and doubts about their Loan Modification, I really feel like I may have been duped.

[Nekocat]

I am sorry to hear your situation and the run around you are getting from Countrywide. My situation is not as dire, bc 11/7 is next week. Perhaps try calling Moe directly on the phone and ask about what happens when you declare bankruptcy to protect your home? I dno't know the technicalities. I just had a workshop meeting with NACA, but I did have to go to a workshop last month before they'd see me for a one on one. But I do know they have urgent situations. It's worth contacting them www.naca.com. Best of luck. I am sending you good thought s to save your home.

[Serenity]

Delilah,

How is it that you didn’t know your house was in foreclosure and pending sale? Its my understanding that in the foreclosure process, there are several documents and notices sent to the owner. I thought there was supposed to be a Notice of Sale posted on the property. Did you never receive these notices?

I think you need to find an attorney (man… I don’t think I’ve ever typed that phrase so much since joinging this board!). And secondly you could contact your County Recorder’s office to see if there is any legal action pending on your property. You can’t rely on phone calls with Countrywide right now.

That’s where I’d start if I were you.

I'd also start looking up the Foreclosure process for your state. They seem to vary state-to-state depending on local laws.

[Delilah]

Thanks, Nekocat, for the advice re: naca.com. I will contact them.

Serenity, it wasn't that I was unaware of the foreclosure. I did receive a letter from an attorney's office as well as a posting stuck in my door. The posting did not contain a sale date-I even double checked it this morning to make sure I didn't miss it the first time I read it. However, I was told by the CSR Rep at Countrywide that the foreclosure would be put on hold while the loan modification process was underway, which is not the case. I'm going to contact an attorney to find out what my rights are. I know that there is a redemtion period, I just don't know the details on how to do this.

[Moe Bedard]

Here is some more info that I posted also on my blog in regards to the deal with NACA. I'll just copy and paste the post here.

NACA's Sweet Deal With Countrywide is Actually Kind of Sour

I have promised my readers that I would follow this new deal that the Neighborhood Assistance Corporation of America ("NACA") has with Countrywide.

What apparently looked like a sweet deal is actually a really sour deal for most homeowners. Yes, it WILL help SOME struggling borrowers but not NEARLY enough.

Check out these requirements:

• Existing loan with Countrywide
• You cannot own other property, and the property to be refinanced must be owner-occupied. (who gives a damn if they own another property? The main thing is it's their primary and that's all they should care about!)
• You must have a predatory interest rate or unaffordable loan terms. The interest rate for the current mortgage(s) must be 10% or greater or considered to be predatory, or the home must be in need of substantial repairs. NACA considers loans predatory that have a teaser rate, but become high rate once they reset. (Wholy moly! What the hell is this? So someone dying form a toxic 9.5% rate is up the Countryfried creek without a grease paddle? That's a joke!)
• The property to be refinanced must be within a NACA region where the NACA Program is available. (Again, a joke!)
• The property to be refinanced and all requested money for improvements cannot exceed NACA's maximum purchase price limits set for that region. (This may mean Californian's are screwed?)
• You cannot have multiple refinances where you are continually taking money out to pay for your living expenses. This does not include refinances to obtain lower rates or to pay for one-time expenses such as home repairs, medical expenses, or education. ( Well that cuts out another 75% of people)
• You must have had your current mortgage for at least 24 months. (reasonable)
• All properties to be refinanced must have thorough home inspections—a complete house inspection and termite inspection. If applicable, a septic inspection will also be required. (Who's paying for that?)

I respect NACA and Bruce Marks. But I personally feel that this isn't really that going to put much of a dent in the Countrywide REO machine and the foreclosure crisis. What about all of those Countrywide predatory loans that are under 10%? A loan doesn not have to have an interest rate of 10% or higher to be predatory Bruce.

I think Michael Blomquist of - www.discountrealty.com says it best:

Only two short months after Bruce Marks, CEO of NACA publicly announced that he would begin to prey on Countrywide, Marks and Countrywide struck a deal. While watching the press conference (available here), my first reaction was Et tu, Bruce? How could Bruce sell out so easily? This man is a pitbull and his work as a consumer advocate is only rivaled by Nader's Raiders. Instead of the normal combative dialogue witnessed in ultimate fighting and Mark's customary conferences the two sides appeared to be auditioning for a Broadway musical. Only minutes into the conference both groups were singing and dancing to each others' praises. As the conference continued I became torn between thoughts of Countrywide throwing the "pitbull" a bone and a familiar battle cry, "keep your friends close and your enemies even closer".

[Moe Bedard]

Delilah,

I ahve seen so many people that have went through what you have went through and they end up losing thier home because of this BS and incompetency of these loss mitigation departments. Especially Countrywides.

Like Serinity said you need an attorney. Also follow Nekocat's advice and call NACA right away and see if you are elligible to be helped.

Don't just get ANY attorney. What state are you in? Try visiting www.NACA.net
The National Association of Consumer Advocates (NACA) is a nationwide organization of more than 1000 attorneys who represent and have represented hundreds of thousands of consumers victimized by fraudulent, abusive and predatory business practices. As an organization fully committed to promoting justice for consumers, NACA's members and their clients are actively engaged in promoting a fair and open marketplace that forcefully protects the rights of consumers, particularly those of modest means.