Bankruptcy INK

As has been discussed in previous blogs, mortgage lenders throughout the country are facing scrutiny for over-inflating their claims in bankruptcy proceedings. Countrywide, one of the largest mortgage lenders, has been in ongoing litigation with Sharon Hill over such a matter. A new revelation has thrown serious doubt into the veracity of Countrywide’s claim.

It was discovered that Countrywide had re-created documents for this case. This finding did not sit well with Judge Agresti, “[t]hese letters are a smoking gun that something is not right in Denmark.” Countrywide claims that these letters were merely reproduced to reflect how the escrow discrepancies arose. However, the Judge was concerned with the fact that there was no disclaimer of reproduction on these documents.

These cases are of extreme relevance, not only to bankruptcy, but as a general proposition. It is important to keep records of every detail regarding your mortgage. Regardless of if you file for bankruptcy or not, you do not want to be paying more than you should to your mortgage company. Moreover, if you do file for bankruptcy, the goal is to allow you to regain control of your financial future. Keeping excellent records will ensure that you pay no more than what is truly owed and allow you to save your home while becoming debt free.