Home in Foreclosure due to CW error-Pls Help

[rmanning]

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.

[Dan Bailey]

rmanning, welcome to the forum and thanks for joining!
***, Moe or Andrew will be by shortly to answer your specific questions.

Perhaps having an attorney contact them to retrieve copies of the original loan terms would help? If you contact them, you may be able to get better answers.

[rmanning]

Thank you!
I will look on the other threads to see if I can find some more information on who to contact. So far, the people I have spoken to at Countrywide pretty much laughed at my request to get this situation fixed. I explained to them that they would lose a lot less money by waiving the $7k pre pay, that we would still pay the other pre pay of 1%, and pay the loan in full....rather than asking for a short sale or letting them forclose on the house. That didn't seem to matter to them.

[Moe Bedard]

Hi rmanning,


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

This is something that the real estate agent should be able to negotiate with Countrywide on your behalf.
Or you might have to consult with a Real Estate attorney to see if they can help you in anyway.

For now.........
Have the agent contact:
1-800-405-0078

Not getting your paperwork copies at the closing is an issue, however, one of the papers that were signed at the closing was the "Truth in Lending Disclosure Statement" and at the bottom of the document there are boxes that are checked right above the signature line that states that the loan may or will not have a prepayment penalty, so that would not have been deceptive, but the fact that you didn't get these copies is the issue, and it looks like you don't have time to QWR the file to get them.

Please keep us updated on how it goes.............

[rmanning]

I need advice on how to handle this issue with CW.

Backstory -
We lived in GA, and hubby was discharged from military. He was without a job for 3 months due to layoffs, and we lived off of our savings. Feb of 2008, he got a job in PA. We relocated, put our home in GA on the market, and purchased a home in PA - getting a VA loan. We still own both homes, and both are financed with CW.

Fast forward to summer of 08. We had hoped that the house in GA would sell, but it did not. We couldn't afford two house payments, and we got 60 days behind on both. We decided that we could no longer pay the mortgage on our vacant house in GA, and started trying to get caught up on our payments here in PA.

Since we were 60 days behind, every month for the past 3 months when I pay the mortgage on our PA house, the send me a letter stating that if I do not pay the next payment by a certain date, then I will be 90 days behind and they will start foreclosure. I have NOT been 90 days behind.

Yesterday I went online to pay the mortgage, and didn't see our account listed, only the one for the house in GA. Called CW. Here is where it gets crazy...

They tell me that my home in PA is in foreclosure! I ask them how and they state that I didn't make a payment in Dec. I tell them I did and gave them the check number. Apparently, what CW did was instead of crediting the mortgage payment (which included an extra $400 to help pay down what we owe) to this house in PA, they credited it to the mortgage on the other house!!!! I never told them to do that, never gave them that account number, and I am not even on the loan for the house in GA, so how could I make an over the phone payment on it????

Anyway, now we are in foreclosure - we are about 10 days into the process. Had CW credited our payment to the right account, we would not be in FC, and in fact, we were planning on getting current on the loan within the next 3 pay checks.

CW said that it's not their problem, that the only thing I can do is pay all the back payments, interest, and now attorney re-instatement fees, or try for a loan mod. The loan mod can take months, and the FC process continues. I have to save this house.....can anyone tell me what I should do or who to call????? We cannot afford an attorney at this point.....I am physically ill over all of this

[Moe Bedard]

You would need legal help with this situation.............you would not have time to do a QWR to find out how payments were applied.......and the property being in a different state than you are located also makes it difficult.

You should be able to find a foreclosure attorney through the bar associations legal aid network...............
here is the link
Pennsylvania Legal Aid Network Legal Help Finder


this isn't something that you should try to take care of on your own..........call and see if you can get help through legal aid.......