homeowner loan

Mortgage Payoff Horror Story (But It Ends Well)

In my last entry, I promised a diatribe on our mortgage payoff horror story. Here it goes:

We refinanced our home in March with Homeowner's Loan Corporation so that we could get the equity in cash to use as the earnest money for the new house. Since we knew that the house would be sold and the refinanced loan would be paid off in a matter of months, our loan included an agreement that we would not be charged a loan payoff penalty when the loan is satisfied because of the sale of the home.

One month later, our loan was sold to Countrywide Home Loans. All was well.

When it came time for us to sell our home, and get a payoff statement from Countrywide, our realtor noticed that the payoff statement included a $3400 charge listed as "early loan payoff penalty". I called Countrywide, and the customer service rep said that she pulled up my paperwork and noticed that I had signed a payoff penalty agreement and that I had to pay the $3400. She faxed me the paperwork that I had signed with Homeowner's Loan, which explictly stated that the payoff charge would not be imposed if the property was sold. That was my case, so I was under the impression that we would not have to pay the $3400.

After repeated phone calls to Countrywide Customer Service, I was placed in contact with the Payoff Department. A woman named Rosemary Borja informed me that Countrywide would waive the charge if I could provide a settlement statement that proved that the house was being sold. I faxed the paperwork to a woman named Aracelli in the Countrywide Payoff Department on Oct 04 and awaited their decision. What we needed for our house closing was an updated loan payoff statement from Countrywide that did not include the $3400 payoff penalty.

No response.

We got down to the day before closing, and my agent still had not received an updated payoff statement. Repeated calls into Countrywide between the end of September and the day before closing were not yielding any results. The pressure was on, the closing was looming, and we needed that $3400 in our pockets and not in Countrywide's.

They gave me many stories, all in what I believe to be an attempt to take my $3400. They told me that they never received my fax. They told me that they would have an updated payoff statement faxed to my realtor. They told me that they couldn't get a hold of me on my mobile phone (but they never even left a message). They even told me in one call that the paperwork that I signed with Homeowner's was no good because it was not an official addendum! Unbelieveable!

And then I started screaming at Countrywide -- screaming like my family had never heard me scream before. One of my conversations went something like this:

CUSTOMER SERVICE: Can I help you?

ME: Yes. Put me through to the payoff department.

CUSTOMER SERVICE: Is there something I can help with?

ME: Look -- unless you want to get sued with the rest of Countrywide, you'll put me through to the Payoff department right now.

CUSTOMER SERVICE: OK.

Was I rude? Yes, but I was tired of getting the runaround.

Here is a partial list of my repeated calls to people over at Countrywide (more calls were made before this, going back to late September, but my Pocket PC phone only keeps track of the last 50 calls):

* I called Countrywide Customer Service on Oct 05 at 9:27 AM.

* I called Countrywide Customer Service on Oct 05 at 2:56 PM.

* I called Countrywide Customer Service on Oct 05 at 3:00 PM.

* I called Countrywide Customer Service on Oct 05 at 4:38 PM.

It is now Oct 06, the day before the closing. The movers are at the house and loading everything into their truck. The clock is ticking. Still no updated payoff statement.

* I called Countrywide Customer Service on Oct 06 at 10:29 AM. I spent 30 minutes on the phone with a customer service representative arguing about my case. This call, which was spent, in part, on hold, raised my blood pressure. I was out of time, I was getting no response. I had had enough. I was pushed too far, and that's when the loud voices began.

* I called Countrywide Customer Service on Oct 06 at 11:01 AM.

* I called Countrywide Customer Service on Oct 06 at 11:13 AM.

* I called Countrywide Customer Service on Oct 06 at 12:05 PM.

* Aracelli called my mobile phone on Oct 06 at 12:31 PM, stating that an updated payoff statement will be faxed "within the hour". It never came.

* I called Aracelli on Oct 06 at 3:49 PM, demanding my updated statement. I had to leave a message.

* I called Aracelli on Oct 06 at 3:51 PM, demanding my updated statement. I had to leave a message.

* I called Aracelli on Oct 06 at 3:53 PM, demanding my updated statement. I had to leave a message.

* I called Aracelli on Oct 06 at 4:04 PM, demanding my updated statement. I had to leave a message.

* I called Aracelli on Oct 06 at 4:11 PM, demanding my updated statement. I had to leave a message.

* I called Aracelli on Oct 06 at 4:17 PM, demanding my updated statement. I had to leave a message.

* I called Aracelli on Oct 06 at 4:44 PM, demanding my updated statement. I had to leave a message.

* I called Aracelli on Oct 06 at 4:49 PM, demanding my updated statement. I had to leave a message.

* I called Countrywide Customer Service on Oct 06 at 4:50 PM. Finally, after arguing with Rosemary for a long time, she agreed to get her supervisor, Moses, to fax an updated payoff statement. I asked for Moses' direct phone number. She said that he didn't have one (yeah, right). I asked her what his last name was and told her not to tell me that he didn't have one of those, either. She offered up the name Guttierez.

Countrywide finally relented and sent an updated payoff statement the morning of our closing, after faxing the same settlement statement the day before.

Here's what I learned through this whole process:

* Mortgage loans are often sold to other lenders. When loans are sold, they are sold as a package. Any paperwork you signed with the original lender must be enforced by the new lender.

* Countrywide Home Loans does not treat its customers with a whole lot of respect. When the customers are four minutes late on a payment, they are down the customer's throat to get their money. When the customer needs something -- well, good luck.

* Keep on these people. Don't let them get the upper hand. At one point, I was leaving messages with Aracelli every 15 minutes, demanding my updated statement. Start off polite, but, if you don't get what you need, call until you start screaming. It's the only way you'll win.

My realtor told me on closing day that I was not the only person with this problem. Many sellers have similar issues. Keep your paperwork, educate yourself on your rights, and be persistent. You'll win in the end. We did.