Frustrating Countrywide Loan Modification

[olander47]

Hi! I'm hoping I can get some ideas from all of you regarding dealing with Countrywide's Loan Retention Team and thier customer service reps. Last July we received loan modification papers from Countrywide. Our loan was due to adjust and we had fallen behind in our property taxes(we did not have escrow). Countrywide included our tax arrears into the loan modification. At the time it seemed like just what we needed to get caught up. We also had a $600 in late fees that had accumulated over the past 3 years. We were told not to make our july payment and the new loan wouild start with the August payment. I noticed that the new payment did not include escrow and thought we would still make the tax payment on our own. After I made the August payment, I called Countrywide and asked about escrow. I was told that I needed to be patient. Their "HOPE TEAM" had written so many modifications that it was going to take a few months for them to get caught up. I made my payments every month. In december of 2008, I received a phone call from them telling me I was two months behind on my payments. I told them that was impossible!!. I had been sending a cashiers check (they told me I could not send a check or make a payment by phone or internet)by two day mail since August. When I looked at my transaction history, I seen what Countrywide had done with my payments. They diverted part of my payments to the escrow dept for the coming tax payment in January. And part to pay off the $600 in late fees. That's what left me two months behind on thier records. And of course they put it on my credit report. It's been very frustrating trying to talk to their employees. Most of them do not speak very good english and It's hard to understand them. The last time I called I was transferred 4 times to other departments. None ever seems to have an answer to my questions. Is there just one person I can contact to get this straightened out? Thanks for any help that can be offered.

[Dan Bailey]

olander,
Glad you found the forum and posted.

Although it may be hard due to employment schedules, calling during workday hours may help you get someone on the line who is not outsourced. Also, ask for a direct line to the "hope team".

Hang in there and good luck!

[olander47]

My thanks to the moderators for this forum. I have a question regarding late fees and modifications.

Are the accrued late fees supposed to be written into the modifications? I found this on the HUD website. Loan Modification Frequently Asked Questions - HUD
Check out question #3. I asked CW about this and of course they know nothing about it and do not write late fees into loan mods and will not forgive them.

What is Mortgagee Letter 2008-21 and does it apply to CW?

[olander47]

I just found this text from Mortgage Letter 2008-21.
It states,

" Late fees should not be capitalized in a Modification or included in a Partial Claim. As the goal in providing the mortgagor either a Loan Modification or a Partial Claim is to bring the delinquent mortgage current and give the mortgagor a new start, the mortgagee should waive all accrued late fees."

[olander47]

Now I have another question...

On my CW statement there is a line for "fees". I have been told that since I am behind in my payments (I'm not, but that's another issue) They send someone out to my house on a monthly basis to make sure someone is living in the house and charge me a fee for doing so. Sometimes the person has to wait till we come home to verify the house is occupied. I was livid!! I told them waiting for me to come home was stalking!! They said it was protecting their investment. It makes me feel very uncomfortable!!

Does anyone else have these "fees" on thier statement? Have you asked what they are for?

[Dan Bailey]

olander,
unfortunitaly, they do have the right to perform "home inspections" (the verbage should be in your original loan packet)

[Dan Bailey]

olander,
Most of us have had the late fees rolled into our principles during modifications.

There is alot of "legalize" before and after that sentance....it would require a lawyer to pick it apart. (I just read the whole letter online) Seems there are stipulations all over. Which is typical to protect the mortgage company.

[olander47]

CW took my accrued late fees out of my modification payments, which made me show late again on my transaction history. I was told they don't put late fees in to the modifications.

Is there anything I can do now?

[Dan Bailey]

I'm a bit confused here....you are saying you received a modification, then, when making the new modified payments, CW took the late fees existing from your delinquency before the modifcation , and applied your payments to the late fees?

Were you told there would be payments due towards your late fees before making your modified payments?

[olander47]

That is correct...When I received the modification papers, although it did not state specifically, I thought the late fees were included into the arrears. ( I know I should have asked) The loan also did not include escrow. It included the arrears and back taxes, which they paid.

When CW "caught up" on my account, they took escrow and late fees out of the modification payments I had been making which made me appear to be 2 months late.

[Moe Bedard]

Is the loan that you had an FHA loan?

What was the interest rate before modification?
Was it fixed or adjustable?
If adjustable when was it adjusting?
What was the loan amount?
Were you paying interest only?

[gray517]

here's one, I got a modification thru Naca (great modification with lower rate) here's the issue, FEES, I had $45 in so called inspection fees that were rolled into the loan, it is right there in black and white, well looking online I now have $140 in fees, not sure what for and the idiots at Cw have no idea and will not waive them, I told them to look at the modification papers (in their system) all fees were added to the loan and as of 2/6 my account was current with only the February payment being due. What a crock, they will get your money anyway they can and it is pointless to argue with them, I tried to call home retention, but since my account is current kept getting customer service, anybody got any other ideas? our budget is so tight that we can't afford to pay the $140 in fees.

[olander47]

Hi ***, Our loan is conventional. We had a 3yr ARM at 6.875% due to adjust in June 08. We were 2 months behind and CW had just paid our back taxes.

When we received the loan modification we were thankful and it seemed to solve all our problems. The interest is the same rate and is due to adjust again in 2013. Our payments before were $1048.00(no escrow) and now according to the mod papers they are $1091.00 (no escrow).

I was told the new payment would begin in August and I have made them every month since. I made calls to CW asking about escrow, and was told since they have done thousands of modifications, I had to wait till they got caught up to answer my questions. In December 2008 I received a phone call telling me I was 2 months behind. When I looked online and seen that they took escrow out of the payments I made and also took $651 in late fees that had accrued from the prior loan. That made me 2 months behind. Now they are including escrow and my payments are $1304. And the $140 in "home inspection" fees.

[Moe Bedard]

I had asked the question because what you were referring to is an excerpt from HUD's website regarding FHA partial claim usage and modifications on FHA loans...............regarding the fees. Which is why I had asked if you had an FHA loan.............then that would apply.........but if you don't........it doesn't apply to conventional loans.


The modification given is going to be based on the guidelines provided to CW from the investor on your loan. If the modification given to you is not going to help.............and if this is the only property that you own.........you can try as gray suggested and go through NACA instead and see if they can help............their Home Save modification services are free..............click on the link for the info..............
https://www.naca.com/refinance/refinanceTenStep.jsp