Reaffirming Countrywide Home Loan BKr's....

[CPO]

I am reaffirming my home loan with Countrywide. I am current (never been late).

I have filed BK7 this week.

I just attempted to logged on to the web access page at Countrywide Home Loans. They have just received my filing both electronically from the court and via USPS.

I now have no access to my account via the web. No explanation was given.

I also tried to call the phone automated payment and status system, and again, have no access. No explanation given. No phone representative, as they work only during the week.

Cute.

I have not attempted to pay via the "Web Bill Pay" feature at my credit union yet as payment is due the beginning of next month.

It's a third party pay service so I will have documentation proving a timely payment submission, if need be.

But, I must admit I have no way of confirming past August the payment amount to guard against payment adjustments due to insurance, escrow or principal adjustments....

I'm sure the statements will be stopped. I have my August statement.

I expected this to happen and you can expect this to happen to you also.

I will report back upon my payment attempt.

CPO

[treehugger1]

Is this a "home-loan" (equity loan) or mortgage? Isn't countrywide one of those mortgage brokers who often carry two papers on a home (1st mortgage and then a second "down-payment" loan secured through a lien)? It could be that they simply need you to come to the local branch office and sign some new forms. I didn't think one needed to reaffirm a mortgage if you were well within the home (homestead) exemptions for your state. Not sure what they do if they are holding a second mortgage or equity loan. Keep us posted. My roommate is looking to finance her first home through countrywide, and it would be nice to know what twists might await someone in the future.

[CPO]

Straight, fixed, VA home loan.

Homestead exemptions keep Trustees from seizing homes , not creditors if your behind on your payments or otherwise in default.....

It also keeps other creditors from attaching valid liens on your property unless its directly related to the home loan security interest, home improvement loans or property taxes.

Filing BK is a default on your loan, so reaffirmation is "required" under BK law if you want to keep the home.

Regardless, the security interest remains.

The fact that Countrywide has "cancelled" my web and phone access may just be that they feel the need to do so to prevent "violating" the automatic stay.

Its not necessary, but then they may not even know what they are doing....

Or, its a temper tantrum...who knows.

Sometimes they refuse payment, which is why you must document your payment attempts and keep your attorney fully informed of these facts.

It's still early so I may receive information yet that will explain much of this.

They probably don't even read your petition to see if your reaffirming until some time later, if at all.

So, my post is generally for information purposes for other filers....

I half expected such issues when I filed...

CPO

[SinkingFast]

We had our last mortgage with CW.

Once we fell 2 months behind in our payments, CW dropped all internet access. I couldn't check on the status of the acct, see how much money was in escrow, couldn't make payments if I wanted to. That's just the way CW does business.

Come Monday, you're gonna need to call the regular "800" Customer Service Number. Tell them you filed BK and are wanting to see about filing a Reaffirmation Agreement. The Rep should put you thru to the appropriate Dept.

Since you filed BK, CW cannot contact you. They can't bill you either. Generally, Lenders have a special Dept devoted to working with people who've filed BK. They know what they can and cannot say to you. What they can and cannot do with your acct while you're under the protection of the Automatic Stay.

You can make arrangements for CW to send you "Informational Statements". They'll look like bills but somewhere on the statement it'll say, "This statement is for informational purposes only. This is not an attempt to collect on a debt." That way you can keep up with the status of your acct. When payments were posted. How much went to escrow. That type of thing.

Also, you'll want to get the correct mailing address where to send your payments. Generally, Lenders use a different address for payments being made during BK. Even after BK if you don't happen to reaffirm your mortgage. Sending payments to the correct address will speed along posting of your payments.

[lrprn]

I just attempted to logged on to the web access page at Countrywide Home Loans. They have just received my filing both electronically from the court and via USPS. I now have no access to my account via the web. No explanation was given.

Welcome to the world of post-filing mortgage company blackouts. Many mortgage companies (including ours) say that if they allow you direct electronic access to your account, then that's demanding payment and violates the stay. (Right ) What it does allow them to do is to keep you from seeing immediately if they pull any fast ones - unfortunately Countrywide has been known to do that - http://www.consumeraffairs.com/finan..._mortgage.html

I have not attempted to pay via the "Web Bill Pay" feature at my credit union yet as payment is due the beginning of next month.It's a third party pay service so I will have documentation proving a timely payment submission, if need be.

We do the same thing through our bank. You just have to be certain you are sending the payment to the right address. Often large companies like Countrywide shift your loan over to their bankruptcy division after you file. The mailing address for your monthly payments may be different.

But, I must admit I have no way of confirming past August the payment amount to guard against payment adjustments due to insurance, escrow or principal adjustments....I'm sure the statements will be stopped. I have my August statement.

Actually what most mortgage companies will do is send you an "informational statement" every month clearly stating that it is not a request for payment. Ours shows how much is going to prinicipal, interest, and escrow each month. But it won't show if they are charging you late fees, attorney fees, etc. You have to watch your total owed VERY carefully to see if there are any discrepancies.

If you really want to see what's happening with your account, you can request an account statement for a specified period of time. If they refuse, you can force them to give it to you by sending them a RESPA letter - see http://www.hud.gov/offices/hsg/sfh/res/respamor.cfm

Hang in there, CPO - just keep Countrywide on your radar and assume nothing.

[CPO]

Welcome to the world of post-filing mortgage company blackouts. Many mortgage companies (including ours) say that if they allow you direct electronic access to your account, then that's demanding payment and violates the stay. (Right ) What it does allow them to do is to keep you from seeing immediately if they pull any fast ones - unfortunately Countrywide has been known to do that - http://www.consumeraffairs.com/finan..._mortgage.html

We do the same thing through our bank. You just have to be certain you are sending the payment to the right address. Often large companies like Countrywide shift your loan over to their bankruptcy division after you file. The mailing address for your monthly payments may be different.

Actually what most mortgage companies will do is send you an "informational statement" every month clearly stating that it is not a request for payment. Ours shows how much is going to prinicipal, interest, and escrow each month. But it won't show if they are charging you late fees, attorney fees, etc. You have to watch your total owed VERY carefully to see if there are any discrepancies.

If you really want to see what's happening with your account, you can request an account statement for a specified period of time. If they refuse, you can force them to give it to you by sending them a RESPA letter - see http://www.hud.gov/offices/hsg/sfh/res/respamor.cfm

Hang in there, CPO - just keep Countrywide on your radar and assume nothing.

Thanks SinkingFast and Irprn,

That's some superb information. I'll call the 1-800 number first thing Monday and see what they say.

I'll be sure to verify what the payment address and account number will be (Web Bill Pay relies on account numbers, IIRC).

I will record the entire phone call. I'm in Texas, so its perfectly acceptable to do so with just me knowing about it.

Thanks for that RESPA info too..Good Stuff.

Thanks again

CPO

[CPO]

Another question for SinkingFast and Irprn,

Once you do reaffirm and receive a discharge/closing, will the mortgage company generally resume the normal statement process?

Or, are you fighting for statements as long as you retain that mortgage?

Thanks,

CPO

[lrprn]

Once you do reaffirm and receive a discharge/closing, will the mortgage company generally resume the normal statement process?

From what I've read online, once your bk closes, mortgage companies once again open the online doors and start sending real account statements again. Looking forward to finding out if ours does that in four more years.

[frankies_mom]

This happened to me too and I could not get the payment in. They finally accepted it but it was just past the 30 day window. Now it is showing up on my husband's credit report as 30 days past due which just gave his credit score a nice blast. We need his credit to be good since he didn't file. I am wondering if I write a letter to our mortgage company if they would consider removing the 30-day late. We have had the mortgage for well over 2 years and have never been late. I guess it is worth a try.

[bezoar]

Maybe we were just lucky, but Countrywide never stopped our billing statements, although our atty said that it "might" happen. Dunno about internet access though - I'm still old fashioned and prefer a paper trail, so I've never tried to access our account via internet.

Being somewhat paranoid, however, I did send all payments certified/return receipt - just for peace of mind until we were discharged. I even went so far as to send them overnight if we were cutting it really close to the first of the month. (With the "ride-through" option, our atty advised to never be even a day late until we were discharged.)

Never had any trouble with them, despite NOT reaffirming with them ("old law" filing). Hopefully your experience will be similar.

[lrprn]

I am wondering if I write a letter to our mortgage company if they would consider removing the 30-day late. We have had the mortgage for well over 2 years and have never been late. I guess it is worth a try.

If you have a lawyer and have already filed, do not contact this creditor directly yourselves. All contact with any creditor should come through your lawyer (unless he/she says it's ok for you to make the contact).

If you don't have a lawyer, then you can try the letter. Do let us know what happens and good luck!

[CPO]

Update, 7/23/2007.

Okay, so I call CW this morning, ask for the BK department.

They gave me the contact number ((800) 669-5224) then transferred me.

I started my audio recorder, date , time etc.

I explained my situation and was told the following things (paraphrased):

Countrywide does not sign "reaffirmation" agreements under any circumstances.

My account had not been "blacked out," as they had not received any BK info on me yet. I gave them the file number, location and file date. Told them they had been electronically notified.

They could not explain why I had no account access. They suggested an account PW reset. Which I completed while I was on the phone with them.

Interesting. I know have access with a new password.

There would be no problem paying on my account via my CU's Web Bill Service as the account remains open and with the same acct. number whether its in BK or not. The payment address had not changed, so if I choose to send payment via traceable means use the current payment address.

I was told that I would still receive statements monthly, just that they would be printed with the "not a demand for payment" notation.

They were very nice, helpful and informative.

Frankly, made me suspicious...but maybe everything is cool?

So, we shall see.

CPO

[lrprn]

Thanks for the update, CPO. Keep us posted on what you find out as time goes on. Hope all goes well....and I know you will stay alert in case things don't go well

[millerc507]

Keep us up to date. We also have a mortgage with CW and will be filing this month. We have our payment split into two electronic payments each month and I have been worried how this will be affected. Thanks.

[Lindsay]

Why won't they sign reaffirmation agreements? I thought you had to reaffirm the mortgage or they could foreclose?