Don't count on it

They are not going to help you.  I'm talking about Countrywide.  No matter what they say.

I sat in on a  conference call today with Countrywide.  Here's the cliff notes version.  "Hey we've lost 2.1 Billion Dollars, but look at the bright side, we have turned the company around and we expect to see a profit soon."

While I may have a slightly jaundiced view I went to an impartial viewpoint to see what they thought.  Here's what CNBC said.   Countrywide's Mortgages: They Can't Really Change A Thing

In case you missed it - Countrywide recently announced that they were taking the proactive approach and contacting borrowers to modify their loans.  That sounds great!

In signing your stack of loan docs, there was one particular piece that was more important than everything else.  It was your Note.  That Note spelled out the exact terms of your loan.  How much you were borrowing, at what rate, and when you were expected to pay it back.

Your escrow officer might have made mention that although your loan may be sold to another investor, the particulars of the Note could not be changed.  That's just how Notes work.

So I was a  little confused when Countrywide came out and said they were actively going to try and modify Notes.  While that certainly sounds good, a Note can only be changed if the Holder of the Note (them) and the Payer of the Note (you) agree to the terms.  Does that still sound good? 

But Countrywide is not the Holder of the Note.  That's right.  The "them" in this case refers to an investment pool.  Your Note has been sliced and diced, (see tranches and derivatives).  It now belongs to the BORG of the secondary mortgage market.  There is no "them".  Therefore "them" cannot agree to your loan modification no matter how much you might like "them" to do it.

So when Countrywide says "We'll modify", we who know better say, "Modify what?"

If you are in trouble and hoping that your lender is going rescue you, Stop! 

Take matters in your own hands.  Act Now!