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Countrywide’s Foreclosure on My Credit Report
Calloway: You suggested that I write this explanation to get advice on how to handle the problem that I am about to describe.
Last week Countrywide foreclosed on the home that I have lived in for a number of years. They were showing “in foreclosure” on my credit report previously. I am sure that they will indicate a completed foreclosure next. This is in spite of the fact that I did not own the home when they began the foreclosure process.
The loan on this home was made two years ago. Countrywide bought it from the company which first funded it. Over a year after that I gave a note and second deed of trust to a private individual, someone who had worked for me for over a decade. The note was all due and payable in the amount of $60,000. The purpose of the note was to provide funds to try sot save my business.
Nevertheless my business, a mortgage brokerage, failed. Subsequently I filed Chapter 7 for both the business and myself. We should have been able to get the second lien set aside as a loan from an insider but my bankruptcy attorney did not accomplish this. The bankruptcies were finalized last September. Needless to say, I did not have the $60,000+ to pay off the second. Immediately the second lien holder foreclosed. I continued to make the payments on the first to Countrywide. We were able to stall the actual foreclosure sale, including filing a Chapter 13, until January.
I realized that it was a bad economic decision to go through with the Chapter 13 and had it dismissed. This house has declined in value and has also become a major fix-up. It is not worth even close to the amount owed Countrywide, let alone that loan plus the $60,000 second. Also, the first loan on it was a negative amortization loan that could have hit the 115% recast point, like a bomb going off, in less than two years if interest only at close to 8% payments were not made. I stopped making payments to Countrywide in January.
The second lien holder was able to complete his foreclosure in February. Countrywide started its foreclosure in April, months after the second lien holder’s trustee’s deed was recorded.
The second lien holder never picked up the payments due Countrywide. Indeed he never even notified Countrywide that he was the new owner of the home. After he foreclosed on me he figured out that there was no equity in the home. In the middle of the foreclosure process, a month into it, Countrywide’s foreclosure service discovered that the trustee’s deed to the second lien holder had been recorded and started sending him the same notices that I had gotten. Originally they sent the NOD notice to this house but later, by the NOS date the foreclosure read the address on the trustee’s deed and noticed the former second lien holder and now owner at his address.
So far I have not received a “three day notice” to move. I suppose that it is only a matter of time before I have to move. But I would like the Countrywide foreclosure derogatory off my credit report. I never missed a payment before this year. the credit reporting repositories never picked up the private foreclosure by the second lien holder. Without the Countrywide derogatory my credit score is not as bad as it might be considering what I have been through.
Any advice on this matter would be greatly appreciated.
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