Country Wide 1st and National City 2nd

[keyluvs2travel]

Hello Everyone,
I am so blessed to have found this site.
Ok here's my story.
I purchased a house in 1/07 for $660,000 from a friend, well I thought he was a friend. When I filed my taxes last year I learned that I had two mortages on this house. CW at $528,000 and National City at $228,000. There were documents that my tax accountant needed that I didn't have. So when I contacted the mortgage broker they began to send me hud and closing statements. I didn't leave the office with these docs. A friend advised me to contact both banks and have the banks fax me all the closing docs to make sure I had everything
Too make a long story short. I found out that National City had an appraisal and contract forged in my name for 1.2 mil dollars and CW had an appraisal for $660,000 and contract forged in my name.
I knew the house was $660,000 but knew nothing about a 1.2 mil dollar appraisal or contract. Also later found out that the attorney that I thought was for me, was the banks attorney.

I informed NC as soon as I found out that there were docs that were forged in my name. They advised me that the mortgage broker was under ivestigation because a lot of people were now in foreclosure and stated that the same mortgage broker had them signed blank docs etc...
NC told me I still had to pay my loan until the investigation was completed. I continued to pay my loan from April-August 08. In August NC calls me and told me that they charged off my loan in April and the full amount was now due. I had a panic attack. They made me seem like I was part of some scheme. They flipped everything on me. They sent attorney letters trying to claim the outstanding balance in October. In Jan 09 they send me a debt forgiveness letter stating that they will accept 25% of the balance on or before Jan 31st 09. Of course I could not pay $71,000. I continue to pay my option arm min payment with CW, but the loan is now 571,000 instead of the original borrowed $528,000. Im in a mess and don't know what to do. I contacted attorneys who said I have a case but they need $15,000-$20,000 retainers fees and said my legal fees will probably estimate to $50,000-$60,000 once the case is completed. I don't have this type of money to fight this case.
I decided to short sale the home, but the realtor Im working with decided to low ball CW at $250,000 and CW declined the offer.
Any suggestions. Should I stop paying CW. I really don't have the money to continue to pay this mortgage along with heating, water and electriciy bills that average around $10,000.
I never try and walk away from anything, I'm a fighter...but I think I just lost the battle. I'm tired

[Moe Bedard]

Hi keyluvs2travel,


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

What state is the property in?
What happened to the $96,000 difference between the purchase price and the loan amounts?


you had mentioned............

I decided to short sale the home, but the realtor Im working with decided to low ball CW at $250,000 and CW declined the offer.


CW requires that a property be on the market for at least 60-90 days before they will consider a short sale............
when you mention that the realtor decided to low ball CW...........did that mean that the realtor that you hired to list your property was trying to buy the property themselves through a short sale...........or were they marketing the property at a price that wasn't approved first by CW and then presented CW with a contract that came in at that price?

[keyluvs2travel]

The property is located in Brooklyn, New York.
Remember the so called friend in the beginning of my story. I think that's where the money went, but I can't be sure because it went to a corporation...that may be his. I found this out when I finally received the settlement statement from the morgage broker months later.

The realtor was not trying to buy the property. It's the second option you mentioned. They put it on the mls for $250,000 and CW denied the offer and told the broker I must find the value of the home.

There is no way I can continue to keep paying a mortgage for 30-60 days along with the other expenses

[Moe Bedard]

We can not advise you on whether or not to continue making the payments....................
but in NY, deficiency judgements are allowed.............so you may want to have your agent relist the property to current market value with comps, because CW will also do their own BPO to see which option will net them the most...............short sale or foreclosure sale......but this way your agent can negotiate the deficiency.





New York Foreclosure Law (Deficiency Judgements)

A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures. This means that the borrower still owes the lender for the difference between what the property sold for at auction and the amount of the original loan. The Plaintiff must file a motion within 90 days after the property sale auction to enforce this right.

[keyluvs2travel]

That's tough to swallow.....because I also have to negotiate with National City in terms of a short sale as well. Not sure how much CW would approve me shorting it for.

So that means if I owe combined CW and NC $900,000 and the property sold at auction for $500,000...they can still come after me for the $400,000?

I can't win!

[Moe Bedard]

I am so sorry.............I wish I could tell you something better.........you were put in a difficult spot by someone you trusted to look out for your best interest...........as many on this forum can definately relate to........

you can also speak to the attorney on our home page about short sale or walking away and see if they may have some better strategies on what you may be able to do............here is the link and the consultation is free........
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