Explore your opportunities! Create an account or Sign In
The most trusted and popular consumer complaints website

Countrywide / Countrywide refinancing scam!

Little Rock, AR, United States Review updated:
4.35
As an attorney and a Countrywide customer, I am in complete agreement with all the comments posted, in particular those pertaining to refinancing -- which appears to be a huge scam. Our existing loan was (is) an adjustable rate mortgage that has increased from an initial monthly payment of $600.00 to now almost twice that amount, and at nearly 11% interest (with notification from Countrywide that it may go up further). When we received our most recent rate hike, we had been getting inundated for months by Countrywide with "URGENT" notices concerning our mortgage, inviting us to "refinance today!", get "cash out", lower your interest rate, get a fixed rate. Suffice to say, like everyone else in this boat, we responded to the offer, beginning nearly 2 months ago (the date now is April 9, 2008). I spent about 45 minutes on the phone with a Countrywide representative who advised me that had all pertinent information and would be "back in contact shortly" -- guess what, folks, no contact of any kind was forthcoming. I decided to try again. The next time, I spoke with a female representative who refused to identify herself as other than "Sims", and once again, I was led back through their series of questions about my current mortgage, my income, etc etc. At the end of the long conversation, Sims advised that she would contact me within a day with information on my request. Once again, no return call, nada. But I didn't give up, figuring that I already had invested a couple of hours of my time and it was worth an hour more to get the matter rolling. After waiting a week to hear from "Sims", I called again in response to one of the literally dozens of refinancing notices from Countrywide. I then talked first to a male named Brian, who took all the information that I had already provided twice before, then shuffled me to an Hispanic female, who apologetically told me that I would have to furnish all of the same information to her that I had just given to her colleague. We went through the process again of income, the rate we were hoping to achieve, the fact that we needed to cash out on existing equity in our home as well as hopefully reducing our monthly mortgage to a more manageable amount. She was very nice, polite, and assured me that I qualified for refinancing. She also advised me that once the loan had been refinanced, the new payment amount would be retroactive to the time when I started the refinancing effort. She also assured me that we would get somewhere between $2000 and $4000 in cash out in connection with the refinancing effort, depending on how the appraisal came out. All of that sounded pretty good. However, she said, we would need to pay a processing fee and an appraisal fee totaling $435.00 -- which we did.

Not long after paying the appraisal fee, we received an overnight package from Countrywide with a not insubstantial number of loan documents, including a Loan Application and a "Certification and Authorization" form by which they asked that I certify the accuracy of the information that had been pre-printed for me on the Loan Application. In reviewing the Loan Application, I noted numerous significant errors -- my time at my job was misstated; there was a savings account noted that had $30, 000 in it, according to the application, when I had never mentioned a savings account, didn't have one, and sure didn't have $30, 000 in one; my monthly income was shown as being much more than I actually earn. In effect, Countrywide had asked me to certify a document that included numerous misrepresentations that Countrywide itself had made in completing the application on my behalf (supposedly). Oh, yes, and the closing costs were about $6000, with a final net amount due me (which I guess was the "cash out" amount) of $610. Completely wrong, completely contrary to the assurances that I had received from the lady who took my credit card information for the $435 appraisal fee. After reviewing the documentation, I emailed a new representative who had contacted me to see the matter through to its finish, and let her know (as she had demanded that we "wrap this up" and that I return the Certification and Authorization sheet) that I could not certify the accuracy of the Loan Application in its present form, with all the mistakes, which I carefully noted in a traditional letter to her. I finally faxed back the Certification form along with my letter asking that my letter be included as an addendum to the Loan Application so that it would be clear in the future to anyone looking at this transaction that I had not made the misrepresentations as to income, savings account, etc. I also mentioned that I believed Countrywide's touted "no cost" refinancing was itself a false representation, given that this process was going to cost me $6000 or so. No wonder your company is under federal investigation, I advised this newest representative on my case. I received a terse email from the lady, saying that she had forwarded my correspondence to her manager and someone would be back in touch with me shortly. You got it -- not a word from anyone since that time. Now over a week since someone would get in touch with me "shortly" and still not a word...

And lo and behold, in the mail with yet another offer to refinance my property, I soon received a notice of default from Countrywide, telling me that I had X number of days to pay them two months' payments at the old mortgage rate, plus penalties, somewhere in the neighborhood of $2500. You can well imagine my response. I let them know that I was going to take aggressive steps if someone didn't straighten out the misguided notice of default, and also let them know that they clearly had an internal problem at the company because the left hand sure does not know what the right hand is doing.

The matter is now continuing, and I expect it to get worse before it gets better. If you have a situation similar to mine, or complaints in general with the integrity and honesty of those at Countrywide involved in what appears to be a huge refinancing scam, please feel free to drop me a line at BLC4law@aol.com Misery loves company and I am sure pretty miserable about this situation and nearing the point where I will take legal action on my own if something doesn't change -- and quick. Folks, does this sound like a scam? First get people bent over the barrel with payments they can't afford, then sucker them out of (at least) an appraisal fee of nearly $500 and probably much more often a refinancing fee / closing costs of many thousands of dollars. If you multiple those thousands of dollars and all those appraisal fees by thousands and thousands of customers in search of some help, you have a massive financial intake that probably nets Countrywide millions each year. I guess that's how their executives come out with $40 Million a year paychecks. What a world we live in...
Bl
0

Comments

Sort by: UpDate | Rating
Ed
  8th of Dec, 2007
Agree Disagree 0 Votes
My complaint is a relatively minor one but it could result in a negative impact on my credit score. On 12/04/07 I spoke to 2 different Countrywide reps about POSSIBLY refinancing my existing 1st and second mortgages. I explicitly asked that no formal credit inquiry be initiated until my wife and I discussed the pros and cons of a new mortgage. Both reps agreed: one named Dina and the other, Miles. I have their last names and phone numbers in my notes. Since that time (3 days)I have rec'd 3 alerts from my credit reporting service about inquiries from Countrywide and Landsafe. As is evident from the web site, Landsafe and Countrywide have a direct relationship. It strikes me as a shabby way to do business but I suppose it is to be expected from today's breed of lenders. Needless to say, I do not expect to do business with Countrywide any time soon. Obviously, the powers that be won't lose too much sleep over the loss of a $225,000 mortgage. Why am I not surprised...
Za
  10th of Dec, 2007
Agree Disagree 0 Votes
Don't deposit at Countrywide banks and financial centers. Learn more about the national mortgage crisis and Countrywide's role in it. Visit www.dontdepositatcountrywide.info
An
  15th of Dec, 2007
Agree Disagree 0 Votes
We had our first loan with Countrywide in 2006. We paid our first payment in October, in 2 installments. Both installments arrived close to the 1st of the month and before the 15th. Our next payment, due in November was paid the same way. However, Countrywide applied the payment to our escrow account and not to principal and interest. For starters, this action breached the mortgage agreement we had with Countrywide. Then, Countrywide reported us late to the credit bureaus. We contacted them, and after several conversations, they agreed to contact the credit bureaus and correct the problem. Countrywide never followed up on the request to the credit bureaus. I had to contact the credit bureaus myself and get the job done.

After all of this, we actually ended up with another loan with Countrywide. As a result of the refinancing our home, one of our lenders sold our new mortgage to Countrywide. All of our payments were made on time, from January 2007 to May 2007. during that time, we were informed by Countrywide that they had allowed our identities to be stolen by one of their employees.

We had other problems with them, and when we had a financial issue because my wife, who is a teacher, did not receive a check for 3 months, we asked Countrywide to put those months on the back of the loan, and let us start our payments in September 2007, when my wife would get a check(my income is used for all other bills).

Countrywide, after all that they had done to us, denied our request and have put us into foreclosure. We will re-instate our loan, but it never had to come to this.

We are currently suing Countrywide for Breach of Contract, and violating our rights under the fair credit reporting act.
Cl
  28th of Apr, 2008
Agree Disagree 0 Votes
This has now happened twice paying my account via the internet to country wide and they take the payment out twice and say that I did it, and that is a federal offence!!! Save yourself the time and mail it only !!! this will happen to you and they will only reverse the whole amount, then you will be late!!!never again !! SELL MY ACOUNT, PLEASE!!!
My
  28th of May, 2008
Agree Disagree 0 Votes
COUNTRYWIDE HAS NO COMPASSION ABOUT DEALING IN ARM LOANS. I WAS A VICTIM OF THEIR MONEY MAKING SCHEME. THE FINANCIAL PERSON TALKED ME INTO GETTING AN ARM FROM A HOUSE I HAD SO I COULD GET CASH OUT AND GET ANOTHER HOUSE. OF COURSE I AM PARTIALY TO BLAME AS I DID NOT THINK ABOUT ALL THE CONSEQUENCES. WELL I BOUGHT THE OTHER HOUSE AND IN THE PROCESS OF SELLING THE OTHER HOUSE WHEN THE MARKET DROPPED. I HAVE SPEND THOUSANDS OF DOLLARS WITH COUNTRYWIDE REFINANCING AND PAYING CLOSING AND OTHER COSTS SO THAT I COULD STAY IN MY HOME. NOW MY MORTGAGE IS MORE THEN MY HOUSE IS WORTH. I HAVE ASKED COUNTRYWIDE TO RESTRUCTURE, TAKE OF THE PMI OR ANYTHING SO THAT I WOULD NOT BE LATE ON PAYMENTS OR FORECLOSE. THEY SAID SORRY, YOU CAN RENT OUT A ROOM OR SALE YOUR JEWELRY TO MAKE EXTRA CASH. THANKS COUNTRYWIDE FOR THE COMPASSION. ALL I ASK FOR WAS TO LOWER MY PAYMENT BY A FEW HUNDRED DOLLARS BUT ALL I GOT WAS RENT A ROOM.
Va
  16th of Jun, 2008
Agree Disagree 0 Votes
At the end of January 2008, I contacted Countrywide to see if they could extend my mortgage payment for 1 month at the end of my payments. They said it had to go through the procedure which would take 14 days. They would get back with me within 14 days on the answer. I contacted them on day 14, and they said it had to go to another department for review before making a decision and it would be up to a month. This would be 6 weeks after I first contacted them. I was waiting for my SSDI to be approved, so I either had to pay my taxes and insurance, or make the mortgage payment. Prior to this incident, I was never late. My payment were always there before the day they were do.

They say to contact them before you get into a situation and they will work with you. I explained this situation to them and they said this happens to the best of us and that they would work out a payment plan. That was a JOKE. The beginning of March, I sent my normal payment in which I thought was my March payment. I learned later that they applied it to the month I was needing the help. I asked them if they had heard anything on the payment plan, and of course they said NO.

Because of all this, they reported my payments as being late to the Credit Bureaus that fast. They waisted NO TIME. If they had of helped me with 1 month mortgage, this would not have happened. Now, I have to wait for a whole year to be eligible to get the PMI insurance request to be removed because of the late payment which could have been prevented with the supposedly good customer service.

THIS HAS MESSED MY CREDIT UP ON MY CREDIT REPORTS which was uncalled for.

They do not care at all for their customers. If they had not been so eager to give loans when the market was hot, they would not be in this situation and would work with their good paying customers.
Re
  17th of Jun, 2008
Agree Disagree 0 Votes
I agree with everyone on this comment board and I am so sorry to hear about all the trouble that you are all having. This is the reason I started my company. I have helped several people that have mortgages with ASC, Countrywide, and other mortgage companies that don't seem to care if they harass people or suck them dry. The comments I have heard are along the lines of trying to get blood from a stone or turnip, or something like that.

I have a service that actually will take you out of the loop of contact with ASC, or Countrywide or whomever you have servicing your loan. All you have to do is tell me how we can help you. By that I mean, tell us what you are looking for us to do for you and we will pursue the help that you want, no matter what. We have all aspects of the mortgage business covered from being a mortgage mediation company, a title company, a real estate company, all the way to having access to attorneys for litigation or help to avoid foreclosure. No aspect of help is turned away.

Let me tell you, most of the customers that I deal with have told me about the fear and the frustration of working with mortgage companies that don't seem to care or give them the runaround. To be totally fair, mortgage companies have their ways of dealing with people. Some are good, some are horrible. But one thing all mortgage companies love is being vague. When they are vague, they don't have to give you information until you ASK for it. How does that help you? How can you try to save your home if you don't know how to ask the right questions?

That’s another reason why I created this company. I take your number out of their "system". When they mail you something, it goes to me. I take the burden away from you so you can live your life without the phone calls and the letters. And the rudeness!!! Oh, man, if I told you some of the stories I have heard...let's just say, it’s not pretty.

I know that some people are going to look at this comment and go, this guy is trying to drum up business. Well, you're right. But here's the kicker. I used to work in mortgage collections. I used to make the phone calls and send the letters. I used to work around the people that make your lives hell. And I kept asking myself, why? Why are these people not being told about the help that’s readily available? Why are these people not being helped to make payment arrangements that are realistic? Why does this company care more about the money than about customer service when that is supposed to be their primary objective?

That's why I got out. I can not stand collections. Just because they are hiding behind a company name they think that they can say anything or act anyway they like with the customers, being friendly with one and the next 40-50 they can treat like crap. Where is the customer service?

I take all that frustration away from you and create solutions that work. I know that it may be hard to swallow, but I do. I have done it for several people. And I can do it for you too. If you want more specifics or just want to talk to me, call my office at 888-453-1518 and check out the website, which is being updated with a few new options available. And this isn't just for people facing foreclosure, people that are current and want to pay off their home early, call me. I can and will help as many people as I am able to. What have you got to lose? Website address is http://www.onlybusiness.com/members/RealtyMediationService...and if not for you, best of luck. In all your endeavors.
Re
  8th of Jul, 2008
Agree Disagree 0 Votes
I agree with everyone on this comment board and I am so sorry to hear about all the trouble that you are all having. This is the reason I started my company. I have helped several people that have mortgages with ASC, Countrywide, and other mortgage companies that don't seem to care if they harass people or suck them dry. The comments I have heard are along the lines of trying to get blood from a stone or turnip, or something like that.

Contrary to what some people have said on here, I am not trying to be one of those people I mentioned above. My company is a nationwide company that provides services for people that are at the end of their rope. One of the helpful things that we provide is letting you know, before payment for service, if we can assist you and if we can not. If we can not, we tell you why not and what can be done to allow our company to assist you. Most companies won't do that, but we will also give you the reasons why exactly so that, if you should choose a different service, they will not be able to scam you. Now that's a way of saving money too.

I have a service that actually will take you out of the loop of contact with ASC, or Countrywide or whomever you have servicing your loan. All you have to do is tell me how we can help you. By that I mean, tell us what you are looking for us to do for you and we will pursue the help that you want, no matter what. We have all aspects of the mortgage business covered from being a mortgage mediation company, a title company, a real estate company, all the way to having access to attorneys for litigation or help to avoid foreclosure. No aspect of help is turned away.

Let me tell you, most of the customers that I deal with have told me about the fear and the frustration of working with mortgage companies that don't seem to care or give them the runaround. To be totally fair, mortgage companies have their ways of dealing with people. Some are good, some are horrible. But one thing all mortgage companies love is being vague. When they are vague, they don't have to give you information until you ASK for it. How does that help you? How can you try to save your home if you don't know how to ask the right questions?

That’s another reason why I created this company. I take your number out of their "system". When they mail you something, it goes to me. I take the burden away from you so you can live your life without the phone calls and the letters. And the rudeness!!! Oh, man, if I told you some of the stories I have heard...let's just say, it’s not pretty.

I know that some people are going to look at this comment and go, this guy is trying to drum up business. Well, you're right. But here's the kicker. I used to work in mortgage collections. I used to make the phone calls and send the letters. I used to work around the people that make your lives hell. And I kept asking myself, why? Why are these people not being told about the help that’s readily available? Why are these people not being helped to make payment arrangements that are realistic? Why does this company care more about the money than about customer service when that is supposed to be their primary objective?

That's why I got out. I can not stand collections. Just because they are hiding behind a company name they think that they can say anything or act anyway they like with the customers, being friendly with one and the next 40-50 they can treat like crap. Where is the customer service?

I take all that frustration away from you and create solutions that work. I know that it may be hard to swallow, but I do. I have done it for several people. And I can do it for you too. If you want more specifics or just want to talk to me, call my office at 888-453-1518 and check out the website, which is being updated with a few new options available. And this isn't just for people facing foreclosure, people that are current and want to pay off their home early, call me. I can and will help as many people as I am able to. What have you got to lose? Website address is http://www.onlybusiness.com/members/RealtyMediationService...and if not for you, best of luck. In all your endeavors.
Gi
  5th of Aug, 2008
Agree Disagree 0 Votes
Unfortunately I have 3 home loans with Countrywide. I've made 67 paymets to date. All 3 payments are due on the 1st of each month. I ALWAYS write checks for each loan on the 25th at the same time and mail them the same time. Two of the loans I make additional principal payments...EVERY time.

Two months in a row now Countrywide has claimed not to receive one of my checks. They have received the other two but not the third. Last month I called to investigate the issue. They claimed they did not have the check. I stopped payment on the check and immediately sent another check. Miraculously Countrywide found the original check the next day and attempted to post.

Apparently the same exact thing has happened this month on the same loan! Countrywide has posted the first two checks but claim not to have received the third. Rebecaa the Countrywide rep suggested I put a stop on the check. I don't have time to go to the bank monthly to stop checks due to Countrywide's lack of organization. I have read other comments about Countrywide on this site which lead me to believe it is a ploy to collect late payments(?) I also see where some people say don't sign up for auto payments from your bank account. Do I have to drive to Plano Texas each month to ensure they receive my payment?

In my opinion Countrywide is the worst service company on the Planet!
Ba
  5th of Aug, 2008
Agree Disagree 0 Votes
GE Moneybank does the same thing.
Ke
  5th of Aug, 2008
Agree Disagree 0 Votes
on november of 2006 I was very short on cash and didnt pay my payment.
March of 2007 I made a double payment to catch up . come august of 2007
I made another double payment, being told I'm still behind.I went to the Department
of banking in my state.They have done nothing to keep country wide off my back .Countrywide still insists I'm a payment behind.Come August of this year I have been paying late payments, have paid all my payments everymonth, just to have the payment put on the month before.I have been late one time in my life and made up for it. 5 pm monday the 4th of aug; the phone rings, its countrywide " your home is in forclosure, due do missing 5 payments " keep in mind I have all my records and bank statements for 6 years and know this is crap. Now I have had to hire a lawyer and involve the attorney general of my state.
. . sorry I was ever sold to them . .now my credit is so bad I cant refinance . ..
Do
  21st of Nov, 2008
Agree Disagree 0 Votes
Called Countrywide in beginning of October /08.We couldnt make payment, husband lost full time job.Asked help, asked for a defferment of a couple of months SINCE WE WERE NEVER late with our payment before.They said we were still current, =no help.Called again and again.Faxed over papers of our financial situation on oct.10.08 they told me they would give an answer in 30 days.I called after 30 days, they told me NO you misunderstood, we said 60 days. That means that i will be 3 months late on my loan, and guess what thats my way to foreclosure. Still today, they have no anwer.Unbeliveable.Very disappointed.
Aa
  26th of Feb, 2009
Agree Disagree 0 Votes
I just cancelled a refinance application with Countrywide, the closing cost which was supposed to be free was around 9k in the paperwork I recieved. Not sure if they will return my $400 application fees. They have already stopped responding to phone calls. I still have one more year to go on 5 year ARM, might as well as start talking to some other lender and switch these guys.
Ni
  27th of Feb, 2009
Agree Disagree 0 Votes
When we starting house shopping we didn't quite have a down payment. We were in the process of setting up a loan through Countrywide and were advised by the loan officer to amend our 2008 tax return to add the 8, 000.00 1st time home buyers credit so that it can be used towards our down payment. While my family and I were doing some research we were advised 3 different times by 3 different people with the IRS that NO IS ALLOWED TO USE THE 8, 000.00 TOWARD A DOWN PAYMENT. If this done that we would be fine and or panelized until that money is returned to the IRS. Another loan officer said that it's considered mortgage fraud. As soon as we found this out we called the loan officer with Countrywide and advised that we were seeking other options and that we no longer would be going through Countrywide. The loan officer then said, " Just to let you know... not many lenders will accept the 8, 000.00 to go toward your down payment." I then said, " Of course, because it's mortgage Fraud!!! It felt soooo good not to be sucked into Countrywide and their schemes!!
Ni
  27th of Feb, 2009
Agree Disagree 0 Votes
fo sho
Co
  2nd of Feb, 2011
Agree Disagree 0 Votes
http://www.reserveathamman.com/

Post your comment

Submit
Bank of America Corporation Logo Bank of America Corporation
Customer Service
Overall Satisfaction Rating

849 Reviews
100 N Tryon St.
Charlotte
NC
United States - 28255-0001
+1 800 432 1000
View Full Information
     

Reply to

close
Send