[Larry T]

Hello, this is a messy situation. Last year I settled a disability from a work injury. We decided to see what our options were as far a getting a better rate on our mortgage to try to keep making ends meet until I found another career, or job.
We found what sounded like a good situation and the deal was that I took $ 45k of my settlement money and paid off our second mortgage. In turn we would be able to refinance at a lower interest rate and without the PMI. With the PMI included it would have become more than we could swing financially.
As I have been trying to find employment, and even trying to get a small towing business going nothing is going right. In an area where there a not a lot of jobs, but very high unemployment rate I am just dragging things down for my family.
Now to make things worse, our mortgage is in my wife's name only since I am not showing an income. The papers clearly state that PMI is paid by the mortgage holder. It also says in the paperwork under the PMI category that PMI is not applicable. When we agreed to pay off the second to get this refinance to go through one of the agreements is that there would be no PMI as we couldn't afford to do it. Well now Countrywide has decided to add PMI to our mortgage even though it says it is included in the loan as mortgage holder responsibility.
They ate up our escrow for our taxes which almost caused us big problems. We finally got enough to pay our taxes but now they have increased our escrow amount to cover the PMI and escrow together. Our original payment papers show noting on PMI other than not applicable. Our mortgage was somewhat manageable, but is not more than we can afford to pay. It has caused us to be late a couple of times now and after three months of trying to speak with someone there about this my wife has had no luck at all. They will not give her the number of the PMI department but say that they will send her something with contact information. Every time they send something it has the same person who has nothing to do with PMI and will not transfer her or give her the number.
SO basically the agreement was that we would pay off our second mortgage which in turn they would drop the PMI. That was agreed by the refinance company. Things were fine until all of a sudden we noticed the escrow was being charged monthly and couldn't figure out why. She called and they said the money was being taken from the escrow to pay the PMI. PMI that was agreed we would not have.
I am really mad about this. I did not mind paying out most of my settlement money to do this to make things easier on my wife and family, but now Countrywide has taken what we negotiated for to make things manageable, and put us right in the situation we said we couldn't afford to do when the papers were signed. The question was brought up and answered several times during paper signing if there would be PMI on this loan. They answered no each time. I made it clear that I did not want to pay off the $ 45,000 second mortgage with the money if we would be hit with PMI. We would have kept looking and worked with someone else.

So, what can we do ? The mortgage papers clearly state that there is no payment for PMI, that it is included in the agreed upon monthly payment during signing. It says that it is lender paid within the loan agreement. But now they up our payment, and we can do nothing ? This doesn't seem right. Why can they not give us the number to discuss this and clear it up ? We would have never done this loan with them under these circumstances and would have explored other options. We have been lied to and it could eventually cost us our home.

Do we have any rights here ? Yes, we are above the threshold for the PMI requirement, but it was agreed if we paid off the second that they would not hit us with PMI. They knew the situation and made us written promises they are not holding to.
I want my 45 k back if this is how they do things. We would never have gone with Countrywide if we knew they were crooked like this and if we ever get out of this mess we will never ever agree to having Countrywide being our mortgage holder.

Any suggestions ?

[excon]

Hello Larry:

Sure, you have rights. It's ENFORCING them that's a problem...

As far as I know, if, after a new appraisal, you still have 20% equity, you don't pay PMI. It you don't have that much equity, you will. It's not really a negotiating point.

Nonetheless, you're obviously not getting anywhere with Countrywide. I'd visit a real estate lawyer.

excon