gee, i am really surprised. who would have thought a giant corporation would try to take advantage of poor and middle class people? that sort of thing just doesn't happen here in the good ole' us of a.

I hope they win the suit and close the doors on Countrywide. What a bunch of scumbags !! Enough said.

Absolutely disgusting. Good expose on big business exploiting those least able to fight back for profit, the probably got tax breaks for this promise and are trying to see what they can get away with.

I don't know why the bank would want to create circumstances where they would end up with a load of forclosed properties on their hands. That is alot more expense for them than working it out with the borrower.

Screw the Katrina victims. It's over for New Orleans. Time to move on. The cost of creating a levee system capable of withstanding a category 5 hurricane are insurmountable,. We need our financial resources to keep up the struggle in Iraq. Wait. I don't know what the Hell I'm talking about. Sorry.

"Unfortunately, we were telling people things that we should not have been telling people.". ...Sounds like just a simple mistake. Countrywide’s mistake. They goofed, they can’t expect others to pay for it.

Keep me posted, I now have a mortgage with Countrywide, but will gladly change if this is true!!!

I'm surprised that Countrywide even offerred to do this in the first place! I have my mortgage with them and ran into financial difficulties several years ago. When I called to request a one month waiver I was told 'No'. When I remarked that this was common among lenders I was then told (and I quote) "We are a big enough company that we don't HAVE to do that!"

How does their commercial song go????... something like Countrywide is on your side?? LOL What a joke! But Countrywide isn't the only lender doing bad deeds in the wake of Katrina. There is another well known company that went to the trouble to send letters to it's customers saying that they are very sorry that their homes and lives had been devastated but their mortgage payments are still due and payable the first of the month!!

Countrywide's incessant, insipid TV ads are enough to keep me from ever doing business with them. When Countrywide says they can do what no other company can do, now we know just what they mean.

Most of Louisianna needed to be rebuilt BEFORE the Hurricaine, but it was just never visible without the media feeding frenzy. Now the problem is sorting out what is and isn't Katrina damage......plus...there aren't really any free rides in America unless you are already wealthy.

I have a hard time sympathizing with people who build their homes 1) in a flood plain, 2) below sea level, 3) next to the ocean, 4) IN A *(&#*&$#* HURRICANE ZONE.

IT'S NOT ROCKET SCIENCE. The Katrina disaster was INEVITABLE.

I also have no sympathy for lenders who wind up with massive defaults on their hands for supporting this mentality that building up the area was a good idea, 5) before we have the ability to control the hurricanes themselves, and 6) build permanent levees impervious to failures of any kind.

It would appear that Countrywide isn't on as sound a financial footing as it's CEO would have you believe. $13B+ worth of credit and cash injections, and they need 3(?) payments from a portion of their mortgage holders immediately after promising to add it to the end of the loan? Sounds like a major cash flow problem.

One has to wonder if Bank Of America dropped $2B on Countrywide preferred stock so they can be the first to pick the bones.

The truth is that the American economy is circling the bowl. In 30 years, we've gone from the greatest creditor nation on the planet to the greatest debtor nation on the planet. Trillions of dollars (12 zeros) are owed, and we can't pay it back without borrowing more.

When the GAO is concerned that our fiscal policy is unsustainable, you have an issue.

I think we're merely looking at one small bit of a tremendous problem.

contrywide has had a histroy of doing this sort of thing without cause.
This company should have been investigated prior to this hurricane.
In 2003 I refinanced with Wells Fargo and told countrywide to 'take a hike', I do not understand why I was treated so badly I never missed a payment but I was 'treated' like I was "subprime".
Now they want my business back, well too bad so sad. They need to be chased out of business...

Wells Fargo has my Mtg and my prior 3 mortgages. I have never been treated with anything but respect from them. I pay on time, so never had to deal with some issues like above. No wonder Buffet owns so much WFC stock and keeps buying more. I will always deal with them. No reason not to.

Wow...this is completely shocking. Countrywide's cash crunch has gotten so bad that it's now squeezing a group of people that have been universally accepted as the most screwed members of the US populace.

New Orleans is a sewer literally and figuratively. It's filthy and always has been. It's the crime capital of North America. They have consciously and systematically destroyed their protective environment and now expect the neighbors to clean up after their poor decisions. They have a near zero tax base and a near 100% welfare base. Get a grip folks. It's over. Pack up and move to Sheveport. Please stay in Louisiana.

I think you are missing the true story. I think Countrywide was planning to defer payments to avoid telling thier stockholders and the auditors the TRUTH. The TRUTH is Countrywide, and all the other giants of the industry are simply trying to hide the delinquincies. How? By deferring the payments, they can now show the loan as "current" on thier books, thereby hiding the delinquency from everyone, including the ratings agencies, auditors, news media, etal. I think we will soon learn that they are all doing this, and will continue to do so until they are found out. I suspect C'wide has been found out. That's the real reason they have "changede thier mind".

Sounds like countrywide may be in more trouble than most people think. when you need cash today, you will look at your books and try to find it any place you can, at any cost. this may be more about the weather that is currently hitting Countrywide than the Katrina victims. Lesson " Survival at all cost"

Katrina was the storm that basically destroyed New Orleans. Perhaps the current mortgage crisis will be the storm that ends Countrywide.

Perhaps if the business practices of such a large company such as Countrywide were focussed on service and the human condition rather than the almighty buck, then perhaps the business minds would have come down from the clouds and saw that the real storm is within Countrywide. Totally off the charts! Heads shold roll so that compassion becomes a business culture for the whole mortgage field, rather than bullying people around.

Ben Dover,

I have been to New Orleans and New York. I will say that New York is more of a sewer literally and figuratively. When the terrorist attack hit New York, I did not see any comments posted like yours. Truthy I feel no sepathy for the terrorist attack. When I see shows about 911 it make me sick that only a few lives were lost there compared to thousands in New Orleans, yet the nation came together. When New Orleans had its own disaster many just turned their heads. This could happen anywhere. Worst of all if a Hurricane would hit New York City tomorrow, which could happen, thousands would die and the nation would spend trillions to repair it and New Orleans would still be in rubble.

I was behind one month on my mortgage and Countrywide was reporting to the credit bureaus that I was in foreclosure when I was not. I was on an ARM trying to refinance when the CW agent told me that "we can't predict what will happen in the future" and that it would take 60 days and their legal dept to stop reporting false info. I wrote a letter to the BBB, cc'd CW stating that they were extorting my information and stopping me from paying them off in full. I received a letter from CW 1 wk later stating I was not in foreclosure.

CountryWide is about to go bankrupt. they are trying to save themselves by raising cash by any means necessary.

These big companies don't care. I once had my car payments thru Chrysler (I had already paid off a car thru them once, and hadn't missed a payment with this car), and one of my payments that I had sent disappeared in the mail. Next thing I know I had a very rude person from Chrysler on the phone, threatening me if I didn't get my payment there by a certain time, they would repossess my car. I called the bank, my check hadn't cleared, so I canceled that check, and sent another one right away. While the check was on it's way, I got a reposession notice in the mail. I have never bought another Chrysler car since. Big companies make their own rules as they go along, which ever suits their needs.

Countrywide is being ridden to bankruptcy by Bank of America. BAC is shorting CFC very stock heavily, pushing it to 0.

Internal BAC estimates indicate they will move from 5th to 4th largest mortgage lender in less then 45 days. That is all it will take to finish off Countrywide.

Countrywide has always been difficult to deal with "after the sale". There is a certain type of person who wants the "Right" to own a home, but neglects the "Responsibility" of owning a home. I mean insure your property with Replacement Cost Homeowner and Replacement Cost Flood Insurance. Yes it is costly, and some sacrifice is necessary. Those whinners you hear from in the national media are those who CHOOSE not to insure properly. Now the rest of the tax payers of the USA get to bail out the "Irresponsible".

I worked for a mortgage company that used to sell it's 'pools" to Countrywide. It's not surprising that any of this has happened. I remember all the State Farm insurance faxes that came thru when Katrina first hit - saying that they were not going to pay-off and warning the mortgage companyies... I hope Coutrywide sinks!

Typicall. Big business vs the little guys (gals). Who will win?

Shame, shame on Countrywide and State Farm Insurance Company for trying to screw the poor victims of Katrina. They'll never get my business nor would I ever recommend them. There should be severe penalties for companies like these.

I think Countrywide has done a lot to help the average american obtain a home. At what point are people going to start being responsible for their own actions????
It seems to me Countrywide upheld their promise they made at the loan closing; the borrowers have not. I don't believe anyone had a gun to their head when they closed their loans.

After all my credit card companies got the senate to bend over and whinny does it surprise anybody that this activity is now the norm and not the exception? Sorry folks, but as Leona Helmsley said..."the little people pay taxes"...so booty up folks!!!!

Most wealthy floridians and east coast oceanfront property owners all know how to milk the tax laws, so what happened here????? oops middle classers without senate representation...perhaps sen.craig could throw you a BONE before he leaves...

Do I have to remind people that Sen. Edwards, you know, the peoples candidate, is a large stockholder in Countrywide? The more you look at it the more hypocrites you find.

This is not new. How about insurance companies not paying the victims of Katrina.

BTW, Countrywide still advertise on TV about their no-cost refinancing. They should be off the air too. Biggest crooks on sub prime lenders.

The one culprit that seems to have escaped scrutiny is the LEVEE districts that spent their money on Mardi-Gras Parties -- instead of on levee repairs and upgrades.

It should not have been a federal job to repair and maintain the levees -- the levees were originally built (some parts of the system dated from before the louisiana purchase) under local funding, and it should be a local responsibility to maintain and improve them.

If you insist on living below sea level, pay for it, and hold those who waste the money accountable.

Give CW a break. Their ship is listing and taking on water. CW is trying to right the ship. They are trying to see what their portfolio looks like – who will pay, who will not pay, and who will refinance. CW is looking for capital to keep their ship afloat and they need to sell loans – it’s tough to sell non-producing loans! I’m sure many of the people in NO still have a few of the $2000 debit cards the government handed out freely. I’m sure CW will take a Debit Card / Credit Card payment on a loan!

For those of you that think New Orleans or Louisiana can get screwed think again. I am one of those people living in Louisiana, however, I am not one of those people living below sea level or siphoning money from the government. I am one of those people being screwed by Countrywide. We have paid on time and did not want to be involved in the suspension of payments. We sent in payments and they were returned to us. Not everyone in Louisiana wants a hand out some of us just want to be treated fairly when we are treating others fairly. You have no idea what it is like to go through this crap! We are not victims but we have been through the wringer!

I've been waiting for this opportunity to unload what has been in my mind concerning Countrywide. The escrow money that has accumulated for the purpose of paying real estate taxes on the property @ the end of year was returned to us in the form of a refund. Countrywide's reason for doing this was there was an overage in the escrow funds and that Countrywide is mandated by law to return the money to the debtor. We took their word and applied the money to pay for another need. Then the unthinkable happened @ Countrywide when it was time to pay for the taxes on the property. The escrow was depleted because someone emptied the account by refunding the debtor with funds from the escrow account. This created a negative balance in the escrow account which was not a good thing for Countrywide. After discovering this dereliction on their part (Countrywide), Countrywide demanded the return of the diverted escrow funds to erase the negative balance. They increased the monthly payments to an amount that dismantled the bugetary allocation of our monthly income. We are on fixed income and the loan was pursued based on our capability to pay that was structured within our budget. Each time I refused to accede to their demands, the check was returned because the amount was not what they wanted. Along with the returned check, they sent threats of foreclosure! I finally agreed to making partial payments in order to slowly erase the negative balance, but it was not enough for Contrywide. They continually returned the checks and tacked on late fees which I refused to acknowledge because the payment was received within the time frame they stipulate in the monthly statement. I keep records of all these communication and planned to report them to the commissioners of banking in the states of Texas, California and NC. But now I won't need to because their ineptness is haunting them! Their bungles have brought them under the microscope and I'm glad that the government is scrutinizing them for their fraudulent practices.

WOW, I can't believe that such a conglomerate organization is willing to risk there entire company by reneging on loans. Most people use replicable companies, that they feel they can trust in times of need. My husband and I have used Countrywide in the past, but now we are really taking a look at how things are being handled. This could easily be us or someone else, not necessarily living in a flood, or hurricane zone city. It can be anything.

That is just a shame that the USA allows a business likes these to take advantage of the lower and middle class. Without the lower and middle class, countrywide would not even be in business. I just hope Countrywide looses in the law suit.

When Countrywide says "the lender changed their mind" they mean just that -- the lender. Countrywide is not necessarily the lender. That is because the loans are sold. Countrywide "services" the loan, (meaning they collect the payments for the lender) but they are not necessarily the lender. They are in the middle.

I second Robert's posting. Countrywide is a servicer and they have to abide by rules set by the investor of these loans. The hurricane victims were advised that if they were needing assistance the payments would be temporarily suspended untill they were able to make payments and at that point they would be set up on repay plans or modification subject to approval by the investors. Some investors just dont allow for modifications. I am sorry for hurricane victims. But we also have to stop puting the blame on banks. I know of people who had payments suspended for over two years then modified their loans. It is easy to be targeted when you are a big company. The people who struggled with the Arm loans did so because they were not savvy enough. Before you sign for anything you have to look at the finest prints . Understand what you are purchasing. Most people want to live beyond their means. In my opinion countrywide provided an opportunity for the american dream of home ownership to all people. It is up to the consumer to be aware of what they can afford even in the long run. The same case applies to car notes and credit cards. Again countrywide services most of these loans. I would look at my closing docs and find out who my investor is then call them and find out why they were not able to defer loans to the end of the note. Again to the victims of hurricane i extend my sympathy but your battle should not be with the servicers but with the investors.