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Wednesday, October 22nd, 2008

Another Huge U.S. Bank Making More “Mistakes”

After AIG was bailed out by taxpayers and subsequently had a $440,000 AIG spa retreat, Americans were mad.

I’m sure many of us could have used a shoulder rub and spa treatments too after our taxpayer dollars were ripped out from under us.

As we’re recovering from that wave of outrage—we get a bit more outrageous news that we’re supposed to swallow: Countrywide Home Loans Inc. is refusing to follow an Illinois state ruling.

Last week Illinois bank regulators tried to stop Countrywide (which is now owned by Bank of America) from creating new home loans in the state, according to a Chicago Tribune article.

The regulators said they would only allow the company to restructure loans of its existing clients.

Countrywide blatantly said it will continue to be “open for business” and does not intend to follow the state’s ruling.

Haven’t we been hearing that much of the financial crisis is due to unregulated companies acting in their own self-interest?

---Do you need a bailout? Check out this filing bankruptcy information to see if bankruptcy could help you get out of debt.

Will these corporations ever learn that their rebellious actions not only hurt the people of this nation but they also ultimately come around and bite them in the derriere?

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Posted in Bankruptcy and Predatory Lending | No Comments »

Friday, September 12th, 2008

Countrywide Attempting to Settle Claims of Bankruptcy Manipulation in PA

Countrywide Financial Corp. and a U.S. bankruptcy trustee submitted another proposal in an attempt to resolve claims that it manipulated the bankruptcy system by purposely losing or destroying more than $500,000 in mortgage checks from people in foreclosure and then charging them with late fees and legal costs.

The U.S. Trustee office, an arm of the Justice Department that oversees the bankruptcy system, has accused the lender of abusing the court system by levying hidden fees on bankrupt homeowners trying to cut their debts.

This proposal attempt followed an earlier proposal that was denied by a U.S. bankruptcy judge who said the first plan was too vague on how the bank would protect homeowners from this happening in the future.

In the newly proposed settlement, Countrywide dropped the demand that the judge bar Countrywide clients from suing for any damages related to the lost payments.

The company also removed a non-disparagement provision that may have stalled a wider investigation.

The new proposal also calls for the trustee to audit borrower accounts (at the trustee’s expense) to make sure the company is indeed cashing borrowers’ checks and not issuing unfitting fees.

In addition, borrowers would also receive itemized statements that would fully disclose any fees and detail their payoff amounts.

Countrywide also has allegations of lending and bankruptcy abuse in states that include Florida, Ohio and Georgia. Additionally, the FBI is investigating Countrywide.

Note: Countrywide was bought out earlier this year by Bank of America Corp., the second-largest bank in the United States according to its assets.

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Posted in Bankruptcy News and Events | No Comments »

Tuesday, January 8th, 2008

Bankruptcy Case Yields Fake Documents

A western Pennsylvania woman's Chapter 13 bankruptcy case raised a big red flag for bankruptcy lawyers and those facing foreclosure, according to The New York Times.

Ms. Sharon Diane Hill filed for Chapter 13 bankruptcy protection in 2001 in an effort to protect her home from foreclosure.

Her 5-year case ended officially in March, 2007, at which point she was current on her mortgage.

Countrywide, the company servicing her loan, recognized that she did not owe the company any money.

But a month later, Hill received a letter from Countrywide insisting that she owed more than four thousand dollars for various charges on her mortgage!

According to the letter, the charges had been racked up while she was making regular payments under her filing bankruptcy plan.

Bankruptcy Lawyer Questions Charges

When Hill's bankruptcy lawyer questioned the legitimacy of the charges, Countrywide sent copies of three letters--dated 2003, 2004 and 2007--to the lawyer.

According to Countrywide, the original copies of the letters had been sent to not only Ms. Hill, but also her lawyer and bankruptcy trustee.

No records showed receipt of the letters, however, and Hill's lawyer noticed that one of the "copies" of the "originals" contained an address that he hadn't moved to until well after the date printed on the letter.

This alerted him to the fact that something was amiss.

Countrywide's lawyer said that the letters had been "recreated" to reflect mortgage charges, which basically means that Countrywide fabricated evidence for its case.

The bankruptcy judge in charge Ms. Hill's filing expressed shock that something of this nature could take place.

Apparently, this isn't the only problem that's arisen with Countrywide during bankruptcy hearings. Stay tuned for more updates.

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Posted in Mortgage Foreclosure | No Comments »