Need Help with Keeping House After Divorce with Countrywide

[RSLJLL]

Last year my husband and I were both working and paying our Countrywide FHA Loan just fine. In Feb he decided it was time to check out (attempted suicide) and after that failed attempt we agreed to divorce. He signed over a quit claim of the house to me unencumbered with the exception of the Countrywide Mortgage. Then I lost my job. Ever since then I've been working temp jobs and my family has helped me make the mortgage payments to salvage the house. I've gotten behind and can't keep it up much longer. However, since this past January (2008) I've been working steady with a temp company floating from one job to another but a steady paycheck - even though it's still not enough to cover everything. I've tried to contact Countrywide each and every month to try and work out some sort of loan modification, workout plan anything that would help me keep my house but get me current on the payments so I could move forward. Now, I'm at the brink of going 3 months behind and Countrywide is just now telling me that I am preapproved for a forebearance - preapproved - not approved yet. They are sending me a 'package' within 4-6 weeks to gather all the info they need along with a hardship letter and financials. What I'm worried about is that the mortgage was originally signed for by my husband. While Countrywide recognizes and acknowlegdes that I am now living in the home and they have proof of the quit claim to me - the loan docs are still not in my name - so how will they be able to work this out with me? I'm afraid they're going to tell me one of my family members will have to sign for something and they can't do it either. I don't want to lose my house. Can anyone help here?
Thanks!

[Moe Bedard]

Hi RSLJSL,

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

You don't have to contact CW directly..............you have an FHA loan and there are different options and help available to you..........this is a good thing......they have counselors that might be able to help with the loan issue also..........


Tips for Avoiding Foreclosure - HUD

[RSLJLL]

Thanks for the advice. I emailed them tonight and I'll see what kind of response I get back. My state has no website but they did list an email address. Of course I will also try to call them. I'm just so tired of trying to make good on this loan and keep the house and it seems like CW could care less. But I also know that it costs $1000's for them to foreclose as well - so why don't they want to help those who ARE willing to call them and work something out? I just don't get it.

[Moe Bedard]

I wish I had the answer to that one too..............

Hopefully you will be able to get something going with HUD because you most likely have a really nice rate on the loan otherwise........right?

Good Luck....

Also when you do talk to HUD as about the FHA partial claim......

Partial Claim (for FHA Loans only)

If you have an FHA Loan, we will be able to start discussions with your lender for a Partial Claim. This strategy is only available on FHA loans. Working together with The Department of Housing and Urban Development (HUD), your lender will agree to help you with a one-time payment from the FHA Insurance Fund. You may qualify if your loan is:

1. At least 4 months but no more than 12 months delinquent
2. You are able to begin making full mortgage payments
3. You have resolved the hardship that caused you to fall behind
4. You may or may not be in Foreclosure
5. The mortgagor has the long-term financial stability
to support the mortgage debt or make the payment
5. The home owner does not have the ability to repay the past due amount through a special forbearance or modification
6. The property is your primary residence
7. If you have filed for Bankruptcy you may still qualify for a partial claim, the Bankruptcy Court must give approval

You will be required to sign a promissory note with HUD and they will place a lien on your property. This HUD loan is interest-free and will bring your account up to date immediately, but it is due when you pay off the loan or when you sell or leave the property.

Here are the terms for the Partial Claim:

1. The note will be interest free.
2. You will not be reuired to make monthly or periodic payments
3. The note will be due when the Mortgage is paid off or when the home owner sells the property
4. There will be no repayment penalty
5. The Home Owner can apply for a refund in the mortgage insurance premium when the note is paid in full
6. The note is payable to HUD
7. You can make partial payments but they must be by cashiers check or certified funds

[RSLJLL]

Thanks very much for this information - it's very helpful indeed. I read through that same info on the website you sent and began to worry about even asking for the Partial Claim 1) Because the loan is not in my name - it was in my husband's name - although CW has copies of the divorce papers and acknowledges that I'm the primary homeowner now 2) my unstable job situation 3) also one other issue I need to lay out which, if the Partial Claim becomes a real possibility, will come into play: When we were married, my husband borrowed personal funds from a friend for a business trip, we both signed what the friend labeled "2nd Mtg Loan" and he had it recorded. That was fine - the loan was for him (not me) but we both signed it and agreed that payments would be made over the course of a year - once his job put him in a position of making more money. And, if the house sold in the meantimre, we could pay it back that way. No problem. It was after that time that my husband revealed to me that he had no intention of paying ANY of his/our debts and decided to attempt suicide, etc. After all of this has played out this past year - it's come to light that it was only a scheme to get out of debt and he was just hoping I would leave and he could come back to his old house of 25 years and live until the mortgage company foreclosed. Well, I was smarter than that - wanted to keep my job and enlisted the help of my sister who agreed to help rehab the house. We continued making mortgage payments, I got the house in the divorce by quit claim (unencumbered except for the CW mortgage) and here I am now a year later - I've been trying to sell the house - but the market has tanked and I'm still waiting for a buyer. Now, once I got divorced I placed the house in a Land Trust so that no other liens could be placed on it by his back taxes or debtors. The only lien that is now on that Land Trust is my sister to secure her rehab funds that have gone into keeping me afloat until the house sells. Well - we're now into the 13 month and barely holding on. So, there's the mortgage, 2) the '2nd mortgage Loan' (which I'm not even sure is valid against ME because it was written between my husband and his friend. But his friend keeps calling ME asking me when the house sells he wants his money) I'm just not sure if this '2nd' loan was actually filed correctly to begin with - plus, he should be going after my husband not just me - I was duped and this friend knows it. 3) the lien for the rehab costs.

So, now if EVEN the FHA considers giving me a Partial Claim for the mortgage even though I'm not a record - but am there now because of the divorce by decree - I'm sure that lien will supercede all others plus I'll have to take the property back out of the Trust which will make it a sitting duck for debtors from my husband to tack on more liens....it's a mess. Do I just walk away and not put anymore into it? Is this a wash for my sister as well and we just say "We tried?"

I think I'm beginning to write a book here.....I need a publisher!

[Moe Bedard]

The decisions that need to be made are personal ones..........can't advise you on that............
and for the other questions about the deed and ownership of the property through the divorce........you really need to ask an attorney that......it is a sticky situation with many ins and outs........

I hope this all works out for you whatever you choose........

Please keep us updated on how you are doing........

even if the update turns out to be a novel.......