Countrywide Complaint - Bad loan
RIVERSIDE, CALIFORNIA -- Countrywide home loans is responsible for me and my wife losing our house.
About a year and a half ago we moved into our first house together using a loan that Countrywide recommended as "great new program" for people like us. (whatever that was supposed to mean) We were told that it would be an interest only loan that would only stay fixed (percentage rate) for one year. We understood that we should get out of the loan after that first year. And in the mean time we would be making payments that were a little over the minimum payment so we would be able to still effect the balance (principle) and not just pay on interest.
When we started to go into the refinance this year we found out that not only was it an interest only loan, it was actually a "negative loan". Meaning that as we were making payments that we thought were the minimum plus a little extra on our own, we were actually paying under the minimum. So our balance (principle) was actually going up during that year and when the year was up (in April) it began to go up at a frightening pace. Our total amount owed has no gone up about $20,000 in less than a year and a half while we have been making payments all along!
We are no told that in order to stay in the house, our minimum payment would now be over $1,000 more a month. We cannot afford to keep the house now and we will be leaving soon. My wife and I have decent jobs (around $120,000 per year)and we don't overspend but we do not want to live in place that will finanially strap us forever. Countrywide did not inform us of the "negative" aspects of the loan and then acted like they were doing us a favor by "helping" us to get out of the loan. If they were honest with us and told us about this, we could have afforded to pay more of necessary. Now the payment is out of reach and we will have to relocate again. (we have 2 kids) I don't know if there is anything legal that can be done, but there should be. (I couldn't afford anything legal now anyways)