Countrywide's Short Sale is a scam!!!

[faith]

Hello everyone, hope all is well with you.
I just checked my credit report with Equifax and I found out that Countrywide reported the 2nd mortgage as delinquent and I owed them $91,000 plus $10,885. They have only reported the 1st mortgage as paid and closed. I have filed a dispute with Equifax and told them that Countrywide agreed and approved a Short Sale for $298k to cover for 1st and 2nd loans which were both CW's. I have a letter stating that CW, its investors and insurers will not pursue any deficiency judgment against us if we did Short Sale and that the balance owed was cancelled. My credit score went down to 633 for doing Short Sale. It really proved that I can not trust CW, their Short Sale is a scam. They can not get anything from me anyway, I only have $25 dollars left on my checking and my husband's checking balance is only $100 dollars. Bank of America cut down our credit limit from $12,000 to $8400 which is the total amount we owed when they found out that CW reported us as delinquent and our credit score went down to 633.

I still thank God I have a roof on my head and $125 between my husb and and I. So I don't know if foreclosure is better or Short Sale, I guess Short Sale only did a little damage as far as credit score, I don't know about foreclosure. The only sad part in renting, I have neighbors in hell that has loud music, heavy footsteps and dropping heavy things on the floor, making loud noises 24/7 and if we complaint and called Security Guard the more they make noises. Oh Calgon take us away!!!!!!!!!!!!!!!!!


Thanks.........

[sadandconfused]

Congratulations. Wow what was your credit score before? How much did you owe on the first loans? Did you have any 401k? What state were you in?

[faith]

Originally Posted by sadandconfused

Congratulations. Wow what was your credit score before? How much did you owe on the first loans? Did you have any 401k? What state were you in?

My credit score used to be in the upper 700 but due to Short Sale is down to 633. I am in California, have purchase money mortgage and never refinanced my loans. Lost job due to disability sustained caused by an uninsured driver. Two weeks before the car accident I've changed my liability insurance from 100k to 15k, my lawyer said if I did not change my coverage I could have at least gotten $100k due to disability I've sustained, the insurance right away settled for $15k, 33% went to my lawyer's fees and some for medicals that were not covered. But I thank God that I am still alive but sometimes I blamed that driver for being so careless, if not for him I still have a job and a house.CW short sale is to me like a scam. They approved it but they still report us owing the 2nd mortgage. What a fraud!!! Good thing I have a letter from them that I signed on the escrow showing that they will not pursue a deficiency judgments against us and a an email from the Negotiator stating how much balanced was cancelled.

Anyway, thanks for asking.

[faith]

Yes, we have used up all our 401k and all our savings because of my car accident in 2005, recovered in April of 2006, unable to find a job since then. Thanks!!!

[sadandconfused]

I refinanced once to get a better rate, but did not take any money out. I have about 20k in my 401k and took out a 401k loans of 20k, so I can't take anymore out except for hardship withdrawal and that has its restrictions one being it must be foreclosure, but I don't want to take that out, I'd rather let them foreclosed. I have two credit cards in collections so and have no money in my savings, so If they don't approve me for the short sale I will just walk away. I will have my house listed within the month and starting this month I will not make another payment even though I was making payments on a reduced payment plan. Personally I don't think Obama's plan will help that many people like he thinks because the banks are not cooperating. My credit score is down in the 500's because I was late on the payments previously and the credit cards. My main concern is the deficiency judgements and I don't want them to do a wage garnishment.

[faith]

Originally Posted by sadandconfused

I refinanced once to get a better rate, but did not take any money out. I have about 20k in my 401k and took out a 401k loans of 20k, so I can't take anymore out except for hardship withdrawal and that has its restrictions one being it must be foreclosure, but I don't want to take that out, I'd rather let them foreclosed. I have two credit cards in collections so and have no money in my savings, so If they don't approve me for the short sale I will just walk away. I will have my house listed within the month and starting this month I will not make another payment even though I was making payments on a reduced payment plan. Personally I don't think Obama's plan will help that many people like he thinks because the banks are not cooperating. My credit score is down in the 500's because I was late on the payments previously and the credit cards. My main concern is the deficiency judgements and I don't want them to do a wage garnishment.

Hello good morning,
Please don't take out your 401k if you're under 59 1/2 you will pay IRS 10% penalty and the state 3% when you file your income tax next year. For your information your 401k, retirements and pensions are safe from being garnished. As far as deficiency judgments there is a lot of topic about it and the most accurate information was done by Professor Shays, it's called CA Section 580b.

If your property is in California and your loan is a purchase money mortgage and never refinance your loan you are covered by this section. Check Professor Shays posts and thread about deficiency judgments it will help you a lot.

As far as garnishing your wages I don't think the Lender will do it especially if you are insolvent like us. If it's CW and it's a Short Sale and they approved it, make sure you get a letter stating they will not pursue a deficiency judgment against you. I have that letter but it still did not stop CW for damaging my credit by putting in my credit report that I still owe them the 2nd mortgage when my house was sold via Short Sale and they gave me a letter showing they will not pursue a deficiency judgment against us and the Negotiator sent me an email saying how much balance was cancelled. We're not going to buy a house anyway, I will be collecting Social Security in 1.5 yrs and my husband will collect his next year. Then we will leave CA and go to Canada or other foreign countries away from CA.

You're right President Obama can not help all of us, but one person at a time is better than nothing, I wish it's you they will be helping next time.

Wish you success in all your endeavor, don't worry, there's always a time for everything

[Irish Gal]

Faith,

Sorry to hear you got bit by CW after all the hard and honest work you did for them to complete a successful short sale. You saved them $$$ by ensuring they recouped more of their loss than a foreclosure would have, you ensured a well-maintained property, and did most of the hard work for them. The agent got paid. They recouped. You were lied to and spit on later. Unfortunately, I am not surprised. This is one reason some attys tell clients its better to foreclose than short sell. They say shorts only benefit agents and lenders while putting enormous stress on the homeowner - with little to no benefits. One atty I consulted was adamant about obtaining full releases (in writing) from all lenders involved in any short sale transaction. He said lenders try and trick short sellers about releases all the time. Some sellers think they're not liable post short sale, then they start getting harassed for deficiency payments and credit dinged. It's good you have proof. I don't blame you for moving to Canada or some other foreign country . Thanks for keeping us posted on what's happening out there to folks who think they've successfully resolved their homeowner situations - only to learn later, they didn't.

[house865]

Faith, the mighty FICO will come back. Getting the short sale completed without the deficiency judgment is a VICTORY! I am so very happy for you! Take time to regroup and do not let the noisy neighbors bother you. It is still a great thing that you have accomplished. You were not born with FICO and it will come back in time. One step at a time.

[sadandconfused]

Faith,
Who negotiated the deficiency judgement? Did you put it in with the short sale package to countrywide? I still have not signed a listing agreement and was wondering if that should be in there somewhere. When you put your house on the market did people come to look at the house all hours? Where did you go or did you stay at the house while they came? Did you get the (no) deficiency letter at settlement?

[faith]

Thanks Irish Gal and house865, thanks for the encouragement I needed it.

When I bought my house in 2005 before my car accident we have a lot of savings from the equity I've rec'd from my old house. We have been paying CW $2,300 interest only for the 1st and $740 for the 2nd interest also plus extra $400 each month to be applied to the principal.

Then I had a car accident in Dec 2005 and lost my job thanked to that uninsured driver, but continued to pay the same amount $3,440 each month up to September of 2007, that's how much money we have paid CW not including the downpayment of $29,500 and the upgrades we made to the house totalled $24,900.

We knew that we could no longer afford it so we wrote CW letters after letter telling them of what we did. We stopped payment in October of 2007 unable to afford it any longer. We moved out of the house to attract buyers and to have peace of mind, knowing that if we moved out our credit score is still good and we were able to rent an apartment.

We moved to San Diego from Menifee, Ca travelled 70 miles one way twice a week, cleaned the house, turned on the sprinklers, we left the lights on and the alarm on and asked our friends to watch our house plus our agent watched it also for us. We did that long travel since 0ctober of 2007 to July of 2008. We gave the new owners the maytag brand new washers and dryers and refrigerator and central vacuum which we never used. We really took care of the house so buyers would come and checked it and it finally sold in July of 2008.

Boy, CW really fooled us, we thought all a long that we didn't have to worry because we have a letter stating that CW, its investors and insurers will not pursue a deficiency judgment against us. I emailed the negotiator to make sure that the letter he sent me was correct and I wanted to know for sure and asked him how much the balance cancelled. He emailed me back and said that the letter states they will not pursue a deficiency judgment against us and the balance owed was cancelled. I have filed a dispute with Equifax and told them this story I've mentioned above.

Our neighbor upstairs really made a big incident last night, 3 police cars came and banging their front door to open the door because they were too noisy, loud music, juimping, laughing and cursing. We were fear for our lives and ask our Apt Mgr to move us up to the 3rd floor, this requires deposit so I asked my Bank of America's credit card counselor to increase our limit so we can use it in case we need to move on the 3rd floor. B of A cut out credit limit and I begged them that I need around $1,500 in case we move on the 3rd floor. the guy said no. In desperation, we went to CARMAX, brought our pink slip, car registration and manual and remote and extra keys for my husband's 2005 Toyota Tacoma and sold it so we can have money and he wants to pay off the BA credit card and I told him no. But he wants to do it so we don't have to worry about bills. It took us 4 hours to appraise my husband's truck, and we got a check that fast and we have to be careful spending this money. But I cried because it's my husband's favorite truck, I don't drive anymore because of my cataracts, we still have a 2006 Toyota Corolla which we have already paid off in 2006. Thank God for our cars and Carmax..

Sadan, as far as listing, make sure that the agent has experienced doing Short Sale. You need to be bold, patience but firm. Call, email your negotiator twice a week. My neighbor in Menifee put their house in the market and was asking CW to approve the Short Sale, but CW will not approve Short Sale if you don't have an offer from a buyer represented by her agent and you have to give CW authorization to talk to your agent. You need to be 3 months behind maybe more now in order for CW to approve a Short Sale.

I wish you the best, hope everything will work for you. Besh wishes and thanks for all of you.

[vkswede]

Faith,

I'm short saling my townhouse in CA. I have a short sale specielist who is taking care of it. both loans are with CW 1st is 300K and 2nd is 58 and the agent that I;m working with lowered the listing price to 175K. my question is when do I ask for written request from CW for not pursueing any deficiency judgment against me, and I assume that the agent whom I dealing with would know that? thanks

[faith]

Originally Posted by vkswede

Faith,

I'm short saling my townhouse in CA. I have a short sale specielist who is taking care of it. both loans are with CW 1st is 300K and 2nd is 58 and the agent that I;m working with lowered the listing price to 175K. my question is when do I ask for written request from CW for not pursueing any deficiency judgment against me, and I assume that the agent whom I dealing with would know that? thanks

---------------------------

Once you have an offer from a buyer your agent will prepare the Short Sale package which includes the HUD, offer. You will need to give an authorization letter to CW to talk to your agent. You have to let your agent and the CW Negotiator know that you want in writing that CW, its investors and insurers that they will not pursue any deficiency judgment against you. CW will try to have you sign a prommisory note that you will pay for the 2nd mortgage, just firmly and nicely say no. The Short Sale has to covered for both loans. They will try ok we will settle the 2nd mortgage for $10k instead of $58k otherwise the PMI which is Republic Indemnity will not release the 2nd mortgage. Just say no. Tell the negotiator that the prices of the homes keeps going down and if he does not approve it right away the prices might go down and the buyers might back out. I had 6 buyers backed out during the 1st listing and 1 buyer backed out on the 2nd listing and 2 more buyers waiting for CW's approval of the Short Sale.

After CW approves the Short Sale, the negotiator will inform your agent and he will fax that approval with a letter stating that if the Short Sale goes through CW will not pursue any deficiency judgment against you but if it forecloses they will. He will also mail the original letter stating that CW will not pursue the deficiency judgment and the Title Company will include that letter to the escrow papers for both parties to sign. You need patience if you're doing Short Sale, it took me from 0ctober 2007 to July 2008 before CW approved the Short Sale.

Good luck and take care.

[vkswede]

Thanks faith, since I do not know much about promissory notes, I was wondering how do the promissory note look a like, does it say promissory note on it, just try to be prepared, you know, we are dealing with professional thieves. thanks again

[faith]

Originally Posted by vkswede

Thanks faith, since I do not know much about promissory notes, I was wondering how do the promissory note look a like, does it say promissory note on it, just try to be prepared, you know, we are dealing with professional thieves. thanks again

The Negotiator will only give your agent the promissory note for you to sign if you agree by phone or through your agent that you are going to sign the promissory note. The success of negotiating the Short Sale is thru cooperation with you and your agent and the negotiator. Be firm, persistent, patient and strong because this is a very frustrating and a draining process. I will not wish my worst enemy to deal with CW.

CW Negotiator does not approve the actual Short Sale, he calls the negotiator of the investor, my investor is Fannie Mae I have both loans with CW, but the PMI was not releasing the 2nd mortgage they want me to sign a promissory note that I will pay the balance of the 2nd which was about $89k. I asked them why did I have a PMI when I have purchase money mortgage and put downpayment on my loan and I was not informed that there's PMI. Well CW to be safe insured their 2nd with Republic Indemnity and now this insurance wants the whole balance paid. I told them no, I rather file a bankruptcy which I was qualified to do. That's the reason why it took so long because they kept insisting me to sign the promissory note and I said no.

Finally, the investor told CW negotiator to accept the offer.
Thank God. I will deal with my next chapter with CW later, not now I don't have energy left because I've been sick due to lack of sleep thanks to my neighbor upstairs who 24/7 non stop dropping heavy objects which gives me a headache, heavy footsteps, loud noises and music. The Manager told me today that have already sent them a letter of eviction so they warned to prepare for the worst. I say if God is for me who can be against me.

Hope this helps.

[vkswede]

thank you very much for the heads up, and wish you all the best

[vkswede]

Folks,

I just had an offer on my townhouse and already submitted short sale package to CW. lets wait and see hopefully that will take them couple of months to decide or approve the short sale.

[vkswede]

Just an update! I got a letter from CW that they are agreeing the short sale and they will send an appraisal to check the Townhouse a few other steps needs to be taken by CW. well, CW stating that they might approve the short sale or deny it, and that should take approximately 2 months.

[slojj]

vkswede,
What was the difference between the loan amount and the offer you submitted to CW?
thankx

[vkswede]

well, 2 loans total 360K and the short sale is going for 175k, either CW exept the offer or will foreclose. lets wait and seet.

[vkswede]

Hi folks,fficeffice" />>>
>>
We still waiting for CW negotiator's decision regarding the short sale and in mean time I got a letter stating trustee’s sale date/auction on June 16th. Called my agent and she said that I would have gotten the sale date either way. I think its time to start moving things out and getting ready to move out within next couple of months. Any word of advise for last months, thanks>>

[vkswede]

Well, CW stating that note holder on the 2nd mortgage wants me to sign a promissory note for 15K, and I just said no thanks. Auction date is on 16th of this month and I think thats for me. I already moved alot of stuff out the house. thanks

[amiesheikh]

Faith,

I had this happen to me with Wells Fargo and Chase (2 different short sales on 2 properties I owned. They didn't report the short sale properly to the credit bureaus. All you have to do is contact the 3 credit bureau's (Experian, Transunion & Equifax) to dispute the reporting from CW regarding the shortsale. Tell them you can fax your approval letter from countrywide showing what they agreed to if they need it. (I did it online with all 3 bureau's and didn't have to send anything in). Your report should be updated in a few months. It worked for me:-)

[elgrancane]

Hi. I'm in North Carolina and am buying a home that's under short sale with Countrywide. The seller's realtor finally got a hold of someone at Countrywide and they told her that the "short sale is now in Phase 2". Does anyone know what that means? Thanks

[faith]

Originally Posted by elgrancane

Hi. I'm in North Carolina and am buying a home that's under short sale with Countrywide. The seller's realtor finally got a hold of someone at Countrywide and they told her that the "short sale is now in Phase 2". Does anyone know what that means? Thanks

Hi,
It means you have to wait for a little bit longer, my buyer waited from the day they made an offer on February 20, 2008 up to June 10, 2008 when the investor Fannie Mae accepted a Short Sale and they have to wait until the escrow closed on July 9, 2008, so it's about 4 months and 19 days wait.

When your seller's agent submit your offer, CW will ask your seller to give them a letter authorizing them to talk to your agent regarding the Short Sale. When the Negotiator received the Short Sale package which includes HUD1 form, listing price, the contract and the seller's letter of authorization to discuss the Short Sale with the agent, CW will assign a Negotiator and then order a BPO(Broker's Price Opinion) or the fair market value of the house.

You can check the recent sold homes in your area by going to www.zillow.com to find out how much the selling price is or the recent sold homes in your area. If your offer is within 85 to 90% of the fair market value or the recent sold homes which ever is greater in your area, CW Negotiator will recommend it to the investor to accept the offer.

Most mortgage homes has a Private Mortgage Insurance and CW's PMI insurance is Old Republic. They will ask the seller to sign a promissory note to pay the balance owed on the 2nd mortgage and if the seller does not want to sign the promissory note, in my case I told CW to foreclose the house and I rather file for bankruptcy than to sign the promissory note, then it will be very difficult to release the 2nd mortgage because PMI is not going to release it without the seller signing that promissory note.

Most of my buyers backed out due to long process and due to PMI forcing me to sign the promissory note in which I fought to the end not to sign the promissory note. CW is better to deal with before than now that it is owned by Bank of America because Bank of America does not forgive the balance owed.

Hope this helps.