Countrywide Refuses To Accept Funds From Reverse Mortgage To Stop Foreclosure

Activists in Detroit are taking action with the Moratorium WOW! Coalition by introducing SB 1306 to the Michigan legislature that would put a two-year moratorium or halt on foreclosures and evictions.  The group issued a call for demonstration to stop the eviction of Rubie Curl-Pinkins from her home in Detroit’s near west side. Ms Pinkins has lived in her home for 45 years, had it paid off, but was lured into a predatory loan when her medical bills piled up. Her adult daughter, who suffers from congestive heart failure and is on oxygen to help her breathe, lives in the home as well.

Countrywide Bank and its law firm Trott & Trott initiated foreclosure hearing against Pinkins. In an attempt to stay in her home Ms. Pinkins applied for a reverse mortgage and is able to pay off her loan balance in full but Countrywide refuses to accept her payment.

While I don’t agree that there should be a moratorium on foreclosures or evictions the story about the senior makes no sense to me.  We all know Countrywide is one of the largest providers of reverse mortgages so why wouldn’t they originate the reverse themselves and pay off the loan?  I tried contacting Trott & Trott but I haven’t received a call back yet.

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Moratorium struggle builds, activists plan to stop eviction

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  • Well this has to be about the craziest thing I have heard lately. We in the reverse mortgage business, who fight daily against the barage of negative publicity about our beloved programs and wonderful clients who benefit immensely from reverse mortgages, would absolutely love the publicity that Countrywide “Could” have had from this missed opportunity. Instead of swooping in and saving the day for Ms. Pinkins and her daughter with a (Dun da da dun)Countrywide reverse mortgage, they opt to toss them in the street. This is another one for the file labeled, “What were they thinking?”

  • I'm a mortgage broker and I am in the midst of saving a home from foreclosure with a reverse mortgage for the debtor. After spending nearly 3 months convincing the mortgage holder that they would realize nearly triple the recovery – nearly all of the princapal balance – with virtually no effort on their part, and saving a poor, sick widow from eviction (no excess drama – absolutely true, I swear!), the bank finally realized that the reverse mortgage was pretty much win/win/win for everybody except the auctioneer and the lawyers. What in the world could Countrywide be thinking?

  • I’m a mortgage broker and I am in the midst of saving a home from foreclosure with a reverse mortgage for the debtor. After spending nearly 3 months convincing the mortgage holder that they would realize nearly triple the recovery – nearly all of the princapal balance – with virtually no effort on their part, and saving a poor, sick widow from eviction (no excess drama – absolutely true, I swear!), the bank finally realized that the reverse mortgage was pretty much win/win/win for everybody except the auctioneer and the lawyers. What in the world could Countrywide be thinking?

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