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Countrywide settlement?

Me and my husband foreclosed early on, in 2007. We had a loan through countrywide and were lied to about how much the monthly payment would be and apparently the loan officer also forged paperwork about our income.

We received a letter yesterday saying that we are a part of a settlement and entitled to at least about $1000 in damages from countrywide, but signing the form releases countrywide of all liability.

My question is... is there another option? If we were to sue them would we be able to get our credit restored? Or would we be better off taking the settlement and using it to work on our credit while we wait on the foreclosure to clear?

Answer Question
 
Anonymous

Asked by Anonymous at 6:05 PM on Jul. 28, 2009 in Money & Work

Answers (6)
  • Don't know if your credit would be restored but it is worth a shot to see if you could get more out of them since they screwed you over.
    jenree33

    Answer by jenree33 at 6:09 PM on Jul. 28, 2009

  • If you decide to be part of the settlement the lawyers for the suit will handle everything and the $1000 is what you will get. If you forgo the settlement and go after them yourself, you will have to pay the lawyers and court costs and may not end up with anything. Just something to think about. Also a good argument in their case would be that even though you thought you were getting a certain payment, you could have walked away at closing when you discovered that it was different and you didn't. I honestly don't think that you are going to get your credit restored, the best that you can do is to continue paying your bills on time and in time you will restore your own credit.
    Anonymous

    Answer by Anonymous at 7:27 PM on Jul. 28, 2009

  • Just something to think about. Also a good argument in their case would be that even though you thought you were getting a certain payment, you could have walked away at closing when you discovered that it was different and you didn't. I honestly don't think that you are going to get your credit restored, the best that you can do is to continue paying your bills on time and in time you will restore your own credit.

    I agree with this person. If you knew this at closing you had the option to walk away.
    Anonymous

    Answer by Anonymous at 7:29 PM on Jul. 28, 2009

  • In addition to the good advice of the pp, I have to add my agreement with the whole idea that you could have refused to sign while at closing. I have turned down a refi because the terms we discussed and I agreed to were not the terms that were presented when the paperwork showed up.
    LiliM

    Answer by LiliM at 11:47 AM on Jul. 29, 2009

  • I would have a consultation with a lawyer and weigh the options. First though I will say with my ex husband the house we owned had a mortgage through Countrywide, I couldn't stand them. When we bought the house our mortgage was $650, 2 years later it was going up for a 5th time to $780.
    Mom2Jack04

    Answer by Mom2Jack04 at 1:09 PM on Jul. 29, 2009

  • We got the same letter. We bought our house in 2005 but then had to do a quick sale (or whatever it is called) in mid-2007. I called the number on the letter but have yet to hear back from anyone. I think we are just going to sign the release and get the $1000. Like a pp said, if we were to go after them ourselves we would have to pay the lawyer and court costs and honestly we just can't afford to do that right now.
    Anonymous

    Answer by Anonymous at 5:34 PM on Jul. 30, 2009

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