HELP! Countrywide is not crediting payments!

[momof4]

I need help immediately. I have been making my payments steadily this year. In 1/2008 Countrywide purchased homeowners insurance for us in the amount of $1954.00 for 3 months! I sent them proof of insurance, and they refunded me only $523.00 of it. In any case, when they charged me the $1954.00 they took that money from my house payment. So, everytime from then on when I have made a payment it has sat in a "partial balance" column, and the payments were not credited because they say they were short every month. No one contacted me regarding the insurance, and I made payments as planned, without knowing that they weren't being credited. I only learned of this because I contacted their "workout department" to see if we could get a loan modification on our upcoming adjustable interest rate which was going from 7.47 to over 8.5 then up to over 10%, every 6 months. I asked them to correct the payments, and take the money out of the "partial balance column and credit my payments. Every month I have to call them to do this, and it is still not getting done properly. After they "froze" my interest rate at the 7%, they added to my loan balance an amount of $7350.43, $4,910 of it was to catch up on 2 payments they stated. The $2440.43 remaining has never been credited to my account, nor was it charged as fees, as there were no fees involved in the interest rate freezing....so they owe me that money. I just checked my year end interest statement for tax purposes, and because the payments have not been credited as payments, my interest I have paid in 2008 is cut almost in half from last year, and the loan is only 2 years old! I paid over $30,000 in 2007, this year I have they say I have only paid approx $16,000 in interest. I need to file my taxes in February, do I go by the payments I have made to calculate my interest?, or do I go by their fraudulant activities in hording my money and not applying the payments to my account? I definitely do not want to be auditied by the IRS, but they are not reporting my interest properly. Can you please help me?? I have 4 young children, and I cannot lose my home!! Please help!!

[Dan Bailey]

Momof4
I'm sorry youre having to deal with this. Glad you posted and came to the forum!
*** or Moe will be able to give you some advice/direction to take as soon as they see your post..hang in there and good luck!

[momof4]

Thanks for inviting me, I am beside myself and scared to death! I have no place to go if they take my house, and it isnt because I defaulted, it is their fault. I have been reading on here for 2 days now, and I might try some of those phone numbers to the top dogs and see if I get anywhere with them. Thanks again Dan, you are really doing a great service in this website to all homeowners - sent from heaven you are!

[Moe Bedard]

Hi momof4,


welcome to the forum and thank you for joining......................

What you would need to do with something like this is to write a QWR (Qualified Written Request) to have the lender let you know in writing where and how your payments were applied and to correct the account information.
You would need to send it Cerified Mail Return Receipt Requested to:

Countrwide Financial
4500 Park Granada
Calabasas, CA 91302
1-818-225-3000



The law from HUD: 12 usc section 2605 servicing of mortgage loans and administration of escrow accounts

Source HUD

(e) Duty of loan servicer to respond to borrower inquiries

(1) Notice of receipt of inquiry

(A) In general

If any servicer of a federally related mortgage loan receives a qualified written request from the borrower (or an agent of the borrower) for information relating to the servicing of such loan, the servicer shall provide a written response acknowledging receipt of the correspondence within 20 days (excluding legal public holidays, Saturdays, and Sundays) unless the action requested is taken within such period.

Qualified written request

For purposes of this subsection, a qualified written request shall be a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, that–

(i) includes, or otherwise enables the servicer to identify, the name and account of the borrower; and

(ii) includes a statement of the reasons for the belief of the borrower, to the extent applicable, that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

(2) Action with respect to inquiry

Not later than 60 days (excluding legal public holidays, Saturdays, and Sundays) after the receipt from any borrower of any qualified written request under paragraph (1) and, if applicable, before taking any action with respect to the inquiry of the borrower, the servicer shall–

(A) make appropriate corrections in the account of the borrower, including the crediting of any late charges or penalties, and transmit to the borrower a written notification of such correction (which shall include the name and telephone number of a representative of the servicer who can provide assistance to the borrower);

(B) after conducting an investigation, provide the borrower with a written explanation or clarification that includes–

(i) to the extent applicable, a statement of the reasons for which the servicer believes the account of the borrower is correct as determined by the servicer; and

(ii) the name and telephone number of an individual employed by, or the office or department of, the servicer who can provide assistance to the borrower; or

(C) after conducting an investigation, provide the borrower with a written explanation or clarification that includes–

(i) information requested by the borrower or an explanation of why the information requested is unavailable or cannot be obtained by the servicer; and

(ii) the name and telephone number of an individual employed by, or the office or department of, the servicer who can provide assistance to the borrower.

Protection of credit rating

During the 60-day period beginning on the date of the servicer’s receipt from any borrower of a qualified written request relating to a dispute regarding the borrower’s payments, a servicer may not provide information regarding any overdue payment, owed by such borrower and relating to such period or qualified written request, to any consumer reporting agency (as such term is defined under section 1681a of title 15).

(f) Damages and costs

Whoever fails to comply with any provision of this section shall be liable to the borrower for each such failure in the following amounts:

(1) Individuals

In the case of any action by an individual, an amount equal to the sum of–

(A) any actual damages to the borrower as a result of the failure; and

(B) any additional damages, as the court may allow, in the case of a pattern or practice of noncompliance with the requirements of this section, in an amount not to exceed $1,000.

(2) Class actions

In the case of a class action, an amount equal to the sum of–

(A) any actual damages to each of the borrowers in the class as a result of the failure; and

(B) any additional damages, as the court may allow, in the case of a pattern or practice of noncompliance with the requirements of this section, in an amount not greater than

$1,000 for each member of the class, except that the total amount of damages under this subparagraph in any class action may not exceed the lesser of–

(i) $500,000; or

(ii) 1 percent of the net worth of the servicer.

(3) Costs

In addition to the amounts under paragraph (1) or (2), in the case of any successful action under this section, the costs of the action, together with any attorneys fees incurred in connection with such action as the court may determine to be reasonable under the circumstances.

(4) Nonliability

A transferor or transferee servicer shall not be liable under this subsection for any failure to comply with any requirement under this section if, within 60 days after discovering an error (whether pursuant to a final written examination report or the servicer’s own procedures) and before the commencement of an action under this subsection and the receipt of written notice of the error from the borrower, the servicer notifies the person concerned of the error and makes whatever adjustments are necessary in the appropriate account to ensure that the person will not be required to pay an amount in excess of any amount that the person otherwise would have paid.

Administration of escrow accounts

If the terms of any federally related mortgage loan require the borrower to make payments to the servicer of the loan for deposit into an escrow account for the purpose of assuring payment of taxes, insurance premiums, and other charges with respect to the property, the servicer shall make payments from the escrow account for such taxes,insurance premiums, and other charges in a timely manner as such payments become due.

Preemption of conflicting State laws

Not withstanding any provision of any law or regulation of any State, a person who makes a federally related mortgage loan or a servicer shall be considered to have complied with the provisions of any such State law or regulation requiring notice to a borrower at the time of application for a loan or transfer of the servicing of a loan if such person or servicer complies with the requirements under this section regarding timing, content, and procedures for notification of the borrower.


The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. RESPA covers loans secured with a mortgage placed on a one-to-four family residential property. These include most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit. HUD’s Office of RESPA and Interstate Land Sales is responsible for enforcing RESPA.

Loan servicing complaints

A borrower may bring a private law suit, or a group of borrowers may bring a class action suit, within three years, against a servicer who fails to comply with Section 6’s provisions. Borrowers may obtain actual damages, as well as additional damages if there is a pattern of noncompliance.

The following is a sample qualified written request from you, the borrower, to a lender. Use this format to address complaints under the Real Estate Settlement Procedures Act (RESPA). Be sure to read more about RESPA, and your rights under this Act, elsewhere on the RESPA site.



Attention Customer Service:

Subject: [Your loan number]

[Names on loan documents]

[Property and/or mailing address]

This is a “qualified written request” under Section 6 of the Real Estate Settlement Procedures Act (RESPA).

I am writing because:

Describe the issue or the question you have and/or what action you believe the lender should take.

Attach copies of any related written materials.

Describe any conversations with customer service regarding the issue and to whom you spoke.

Describe any previous steps you have taken or attempts to resolve the issue.

List a day time telephone number in case a customer service representative wishes to contact you.

I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.

Sincerely,

[Your name]



REMEMBER: This letter SHOULD NOT be included with your mortgage payment, but should be sent separately to the customer service address.

You SHOULD continue to make the required mortgage and escrow payment until the request is resolved.

You may bring a private right of action under Section 6, if you suffer damages due to the lender’s servicing of the loan. See the RESPA statute and regulations.

Filing a RESPA complaint

Persons who believe a settlement service provider has violated RESPA in an area in which the Department has enforcement authority (primarily sections 6, 8 and 9), may wish to file a complaint. The complaint should outline the violation and identify the violators by name, address and phone number. Complainants should also provide their own name and phone number for follow up questions from HUD. Requests for confidentiality will be honored. Complaints should be sent to:

Director, Office of RESPA and Interstate Land Sales

US Department of Housing and Urban Development

Room 9154

451 7th Street, SW

Washington, DC 20410

[gray517]

If you log into your countrywide online account, on the left side click on account information and then transaction history to see the the transactions on your account over the last 12 months. You can also click on financial hardship and then workout information to track your mod progress (however this info isn't always current)

[momof4]

Thank you everyone for your help, I am drafting a QWR as I type here....I am going to send it an email it as well. When I go to the transactions in my Countrywide online account, it says that the information is not available, please call your representative...so I cant even print what they are messing up. The mod progress states to call them if I have not heard anything by November 26, 2008. Of course, I called them, and they said that nothing has been changed, it is still in process....ugggg! Get this, last week I phoned them again regarding my December payment, and of course it was sitting in the "reserve" again, because it was short $87.50 because they told me that they did a "drive by" and charged my account for it. What pisses me off, is that they dont tell you that they are doing it, so again, my payment is sitting there because it isnt a "full complete payment" any longer. I then paid them an additional $87.50 over the phone, and they promised that they would credit the payment. Well...you guessed it, it has been deducted from my bank last week, but still does not show on my account, nor has the payment been credited....I cant imagine what my credit report looks like...again, thank you for the advice, this is soooo time consuming and stressfull. I cant take it anymore.

[factotum]

Many years ago I had a problem with a mortgage company not crediting a payment. I finally mailed them a payment in the form of a box of rolled dimes. I said that the next payment the box would be loose dimes. They immediately fixed the problem.