A friend of mine is being foreclosed on and is asking for advice. Me, not knowing anything about it, figured TWW would be able to help more than me. This is all heresay so some steps in this process may have not been told to me. Does anyone on here know anything about the foreclosure business?

The story so far:
This all started back in August when she just did not mail in that months payment to CountryWide. The next month's payment, evidently hoping no one would notice the difference, mailed in twice as much. Regretfully, a few weeks later her check was returned. She called and they said they were no longer accepting payment on her loan and nothing could be done until a negotiator was assigned to her case. She calls repeatedly over the next several months and gets the same story until, finally, last Thursday they assign her a negotiator. She talks to the negotiator on Friday and is told it is too late to do anything, the house has been foreclosed and goes on sale this coming Monday and will need to be vacated within 30 days. However, after being yelled at for awhile the negotiator aparently caves and says they will accept $3800 to go away (the mortgage was $300/month). But, after saying she can pay it and then being on hold for half an hour the negotiator comes back and says it is now $4700 because she forgot about lawyer fees. Back on hold for half an hour and a guy comes on the phone saying the negotiator has left for the day and it will be $5200 to end the foreclosure because the $4700 expired half an hour ago and now he was leaving too.

This sounds an aweful lot like a negotiation to me (the job title is 'negotiator' afterall). Everytime she accepts one figure they come back and say it is a new higher figure. Almost like they want her to pay as much as they can get her to. Is it possible this is being handled by a collection agency which gets to keep whatever she pays above and beyond the missed payments plus interest? If so, would it not make sense for her to latch onto the first figure, $3800, and proclaim endlessly that is all she can afford? And just because the house goes on sale on Monday, what are the odds it is going to sell quickly? There is no way they are going to just hold an auction and sell it that day, right?

Thanks for any assistance!

1/26/2008 10:34:36 AM

how sure are you about this story? i have to imagine that this story if it's 100% true then countrywide is not handling this legally

this is only worth responding to if you are 100% on this story

1/26/2008 10:59:14 AM

This story doesn't make sense at all. If she was making her payments on time and really only missed one payment, it would not be in Countrywide's interests in any way whatsoever to foreclose.

1/26/2008 11:08:53 AM

Yea that doesn't sound right at all - having dealt with mortgage companies before, the normal number of missed payments a company will allow before starting foreclosure is three, but technically they can do it after one. If she called them very soon after she missed the first payment, I don't see any reason at all they would start foreclosure proceedings.

Like both of the guys above said, her story doesn't sound legit.

ALSO - tell her to call the HUD office in her area (to find good counsel) and to make sure and respond to any court papers she receives, or else they will default to the mortgage company with no questions asked.

[Edited on January 26, 2008 at 11:25 AM. Reason : .]

1/26/2008 11:23:02 AM

Quote :

"This story doesn't make sense at all. If she was making her payments on time and really only missed one payment, it would not be in Countrywide's interests in any way whatsoever to foreclose."

1/26/2008 11:23:45 AM

If this story is true, she needs a lawyer not TWW.

1/26/2008 11:24:26 AM

It didn't sound right to be either, but that is the story I was given.

It sounds more likely that after her check was returned she called and got the wrong person which told her to sit on her hands until the negotiator came along (which happened to be three months later).
It is possible her check in October was returned because it was the wrong amount and when she told the wrong person they assumed because it was returned they must not be accepting payment anymore. This is the only thing that makes sense to me, one big mis-understanding right until last thursday, when everything finally got serious.

So is that it? Once we get here she needs a lawyer? What about the offers from the people on the phone to make it current from X dollars? And what is a lawyer going to do for her, generally speaking?

The mortgage is aparently very old and only $30k remains on it. So, if the bank does foreclose they are guaranteed to get their balance plus whatever fees they can think of from the sale. But I have to think it would not be good for their reputation.

[Edited on January 26, 2008 at 11:47 AM. Reason : .,.]

1/26/2008 11:38:24 AM

Tell her to call the mayor and congressman, the govt is getting involved in these things and they can help stop the forclosure and force countrywide to redo her loan
the government is bailing out alot of these companies and they're not supposed to screw over their customers

1/26/2008 11:39:22 AM

Well then it's her fault for now following up - what did she expect if she didn't pay for her mortgage for 4 months?

A lawyer is going to file all her motions in court and generally waste the companies time until they get pissed and tell her to just pay. Trust me, in the market right now it's in the companies best interest not to foreclose.



[Edited on January 26, 2008 at 11:47 AM. Reason : .]

1/26/2008 11:45:54 AM

Oh I just read this.

Quote :

"The mortgage is aparently very old and only $30k remains on it. So, if the bank does foreclose they are guaranteed to get their balance plus whatever fees they can think of from the sale. But I have to think it would not be good for their reputation."

If that is the case maybe she should refinance the $30k instead of just sitting there waiting for this to work itself out. She stands to really lose her ass if it goes through. ]

1/26/2008 11:59:22 AM

so wait, she went 4 months without paying her mortgage ? or what ?

1/26/2008 1:10:00 PM

i want to find a house for $300/month

though im betting you get what you pay for

1/26/2008 1:21:29 PM

You can get a house in Durham for $20,000. Spend another $10,000 on guns and ammunition and you're good to go with a monthly payment of $150.

1/26/2008 1:52:54 PM

Quote :

"Well then it's her fault for now following up - what did she expect if she didn't pay for her mortgage for 4 months?"

lol, that would be the breaking point in this issue. The first post made it sound like she kept paying them after that one check was returned. But if those 4 months were just non-paid months, then you really could be in deep water, but the story would also make a lost more sense.

1/26/2008 3:04:37 PM

yes especially if the #2 check that was twice the amount was returned for insufficient funds. If she sat back 3 months and did nothing... I mean wow. I have done business with countrywide before and they have been nothing but professional.
The pieces aren't adding up to the story. and it sounds like she is dealing more with a collections agency then a mortgage company

1/26/2008 4:19:08 PM

get a lawyer

1/26/2008 4:24:22 PM

Call Clark M - F or http://clarkhoward.com/

1/26/2008 4:36:59 PM

Quote :

"so wait, she went 4 months without paying her mortgage ? or what ?"

I told you. According to her she went four months of them returning every check she mailed them.

1/26/2008 8:34:51 PM

lol... so... what did she think after it happened the second time ? and she still hadnt payed... and the 3rd ? and then finally the 4th ?



personally... by the 2nd month, i would have gone to whatever office i needed to go to and talk to someone in person and get shit in writing.


sounds to me like this is a case of stupidity.

1/26/2008 8:37:18 PM

sounds to me like shes not beign honest and didnt pay it, they would have accepted it on the 2nd months, they dont begin letter of defaults for about 4 months, and then she woujld have gotten the letter anyways and could have appealed at the hearing.


what address is this house at? pm me if you need 2

1/26/2008 9:13:45 PM

Quote :

"This story doesn't make sense at all. If she was making her payments on time and really only missed one payment, it would not be in Countrywide's interests in any way whatsoever to foreclose."

1/26/2008 9:19:36 PM

yeah its going to cost them money to have to do all of this stuff................

I think Judge Judy or Judge Joe Brown should see that hole in a second

1/26/2008 9:24:26 PM

Quote :

"what address is this house at? pm me if you need 2"

A shark smells blood in the water...

1/26/2008 9:37:22 PM

who the fuck has a mortgage payment of 300 bucks?

1/26/2008 9:44:07 PM

I wish I did.

1/26/2008 9:47:45 PM

If she can show that she sent them a check every month and they refused it, I think she'd do well in court.

1/26/2008 10:38:00 PM

if you put down a huge amount, (like if you sell a paid off house and then go for the next size up) you can easily end up with a 300 dollar a month mortgage.

1/26/2008 10:50:09 PM

yeah, but why would you put so much down on a house? it doesn't make sense. you could invest that money and end up with more money in the end.

1/26/2008 10:54:02 PM

im a big fan of the "carry as little debt as humanly possible" theory

[Edited on January 26, 2008 at 10:59 PM. Reason : and it really works out more like a car payment money and timewise, we're not talking 30 years]

1/26/2008 10:58:18 PM

OK you either don't know what's going on or are only posting partial information - as evidenced by you explaining more as posts are made.

First of all - did she communicate with them that she couldn't make that first payment? If so, they sure as hell wouldn't have told her not to make one at all. Second, did she communicate with them when they returned her check at all? If so - this would have been resolved long before she just kept getting her checks returned.

Or maybe your "friend" is a box of rocks. Anyone with half a brain would sacrifice all other bills before not paying a mortgage payment.

1/26/2008 11:19:42 PM

wait... you have to pay those EVERY month???

1/26/2008 11:30:45 PM

As I said, she did not contact them by phone until after her first check was returned. It was at that point the person on the other end of the phone said they were no longer accepting payments on the loan until after a negotiator was assigned to her case. It was the negotiator which then informed her that it was their option to foreclose after one missed payment and that they are going to take it. House goes on sale monday.

Now, any constructive statements are appreciated. It is already clear to everyone that missing that one payment was stupid. What can she do now? It seems to me that all hiring a lawyer could do is slow it down, maybe give her a few more months in the house. That is, unless you know something I do not.

[Edited on January 27, 2008 at 2:12 AM. Reason : .,.]

1/27/2008 2:03:31 AM

Foreclosure lawyers exist for a reason.

1/27/2008 2:08:52 AM

Ok, I did some research on my own and I see only one scenario where this all makes sense: she has missed payments before and gotten a Workout or Forbearance which contained the stipulation that she would never ever miss even just one payment again or face immediate foreclosure.

So, I guess, it does make sense. There is prior history here and she has probably already hung herself. This being the probable case (she would never admit it if it was), I am even more skeptical that a lawyer will do any good.

1/27/2008 2:22:46 AM

The only choice that she has at this point is the fork over the money that the company is asking for or continue into foreclosure and lose the house. These things do not happen overnight.

1/27/2008 2:55:13 AM

I agree, they must pay. But how much? The figure seems like it goes up whenever they agree to pay the previous figure. So, in the interest of not paying more than they have too, does anyone know how this figure is being calculated on the other end of the phone? Would it makes sense to proclaim that they either refuse or simply cannot pay more than, say, $4000? Or is there actually a formula and the bank is simply trying to cover its costs, its employees simply keep calculating it a different way each time?

1/27/2008 10:17:18 AM

This is really too important to use advice from TWW.

Quote :

"Foreclosure lawyers exist for a reason."

[Edited on January 27, 2008 at 10:29 AM. Reason : asdf]

1/27/2008 10:29:08 AM

^^just admit it, it is you

[Edited on January 27, 2008 at 10:29 AM. Reason : w]

1/27/2008 10:29:10 AM

story doesnt make sense.

first thing they will do is send your friend a notice of default.

30 days to respond after that letter is received before they will start foreclosure proceedings.

30k left huh? when does it go up for auction?

1/27/2008 11:31:37 AM

yea, for real. where is this house located and when does it go up for auction ?

1/27/2008 12:59:02 PM

that would suck balls to have your house foreclosed on with 30k left.

if it were me, i would get a lawyer and fast - there's enough fishy about both sides of this to warrant it.

1/27/2008 1:23:45 PM

As I am figuring out slowely over time, there is nothing fishy or otherwise odd about this situation. A bank would normally need to give 30 days notice and take her to court to foreclose on the house. Regretfully, it appears that this must not be the first time she has missed payments, and that time was settled with a Workout or Forbearance which means in exchange for the bank leaving her alone last time she gave up the requirement for them to take her to court this time. Very sad.

1/27/2008 2:46:18 PM

so where is this house located?

1/27/2008 5:04:58 PM

If you just want to find houses in foreclosure then just search for them:
http://www.foreclosure.com/search/NC_183.html

1/27/2008 6:56:59 PM

My theory is that she skipped a month, her check got returned on account of an error on CW's part, and instead of immediately hitting CW's customer support and getting a lawyer, she took it easy and took CW's word for what the current situation was.

Hard life lesson, never let up on something of this magnitude.

1/27/2008 7:05:20 PM

There's a foreclosure on Oregon Trail in Garner

1/27/2008 7:09:54 PM

i bet snake bites are common

1/27/2008 7:27:24 PM

are you sure you are getting correct information?

So you are saying the house is going up for sale. That means that the hearing on foreclosure has already taken place. Your friend would have been served with a Notice of Hearing on Foreclosure AT LEAST 10 days prior to the hearing. If the house was foreclosed, she would have also been served with the Order to foreclose. A negotiator can't just tell you it has been foreclosed and it is going on sale within a few days. A debtor must have prior notice.

This just sounds so fishy to me... if your friend is really telling the truth then she should immediately contact an attorney because the bank is illegally foreclosing this property.

1/28/2008 10:06:23 AM

She is not entitled to judicial remedies, she gave up that right in a prior Workout or Forbearance. If that is true then this all makes sense and all she needs is notice to vacate, and she got 30 days

1/28/2008 10:20:58 AM

lol @ women. After hearing stories like these, I've totally forgiven my wife for her blunders.

1/28/2008 10:45:17 AM