What Really Caused The Mortgage Crisis?
This special message is sponsored by the letter “D” and the number ‘0′.
It’s no secret that Countrywide Home Loans, with the help of a shady mortgage broker, took advantage of a couple people I hold very dear to my heart.
Just over two years ago, they realized they had been duped into a mortgage they were not going to be able to afford. With the adjustable rate climbing, and the mortgage barely within their ability to pay, they took action trying to prevent disaster before it happened.
Over the course of these past two years, they tried working with Countrywide. Countrywide wanted no part of it. The only assistance Countrywide offered, was negotiating a new mortgage (which would have caused them to default even faster). They placed the house on the market immediately.
Because of the turn in the market, they couldn’t even get anyone to look at the house. Countrywide still ignored them. When they did receive an offer, they inquired about short-selling, but Countrywide slammed the door on that idea.
Nine months ago they were forced to walk away from the house. Countrywide gave them no choice. Several months ago, they foreclosed on the house. Last month, the house sold to another person for less than half what was owed on it.
And now? Countrywide actually sent them a letter telling them that their mortgage payment had been “adjusted” into a fixed 7.25% interest loan, with payments that were very reasonable, and in fact, affordable. One month after the house sold.
The people at Countrywide are “d”umbasses. They were screwing people over for years, and now they are sending out these fake “we’ll help you now” letters to convince the government they are actually trying to help them. They have to. It’s the only way they can guarantee that the government is going to help bail them out.
Countrywide was, and still is, run by a bunch of people with ‘0′ (zero) common sense. If they had actually helped the homeowners who didn’t want to walk away, rather than ignoring them, the mortgage “crisis” might not have become much of a crisis at all.
Crossposted at Kooks In Suits.
3 Comments so far
AMEN! Again…..
That sucks. I am a mortgage loan officer in Charlotte, NC. I hear a lot of stories but your friends’ story is pretty bad, and paints a horrible picture of Countrywide. I think loan modifications can make a lot of sense, but a lot of lenders will not consider it until it is too late.
I hate it for your friends. That broker should have explained what they were getting into up front.
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