I Give Up!So, after all of this time of avoiding the subject entirely, I suppose it’s time to wrap up this whole PMI topic.

In last month’s net worth update, I briefly hinted at the fact that I was throwing in the towel for now…

I cast out one last line earlier this month to Countrywide when they completed my annual escrow analysis for my attached escrow account (which, in part, pays the PMI premium each month) and was greeted with the same response I’ve been receiving since July.

“Send us a check for $130, take a day off from work, and maybe we’ll drop it, but probably not. The current market conditions aren’t favorable, you know…”

So, for the time being, and likely the entire year of 2009, I’m just going to swallow my pride and continue to be ripped off because I’ve come to the conclusion that this is a battle I can’t win — there are just too many loopholes and specific conditions available in the law for them to fall back on to justify taking this money from me.

Yep, I’ve met all of the commonly mentioned benchmarks; the 22% equity being the most often referenced as a mark resulting in automatic termination.

But there are little sneaky things in there like termination, automatic or not, never happening until reaching the mid-point of the original amortization schedule.

Yeah — like 9 years from now…

In my instance, that’s another $9200 in PMI payments.

And, even then, there are ways for Countrywide to continue to hit me up for an extra monthly fee.

Aggravating is the only word I can think of to describe it.

Seems my only hope is to re-finance and, right now, I’m not ready to make a move like that.

I’m not really sure why I say that, it could just be laziness — it probably is, but for whatever reason, I’m just not comfortable making that move right now…

You know, with “market conditions” being what they are…         ;0)

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8 COMMENTS

  1. Thanks Dude — yeah, it’s a weekly occurence that I catch and clear out pretty much every Tuesday with regularity…

    I need to update my version of WordPress to eliminate the hole, but I hate the new front end…

  2. has anyone had any luck dropping their PMI from Countrywide? I’m in the same boat, as far as the 22% equity, and keep getting the same letters with the COV and Landsafe. I’m just wondering what will happen if we do pay for the appraisal and the amount gets low balled (which i’m sure it will). Once we have the new appraisal amount and we get our balance paid down to 78% LTV of that new amount – will Countrywide then drop the PMI – or will we have to go through the same COV process again??

    If my rate wasn’t so good (5.5) i would refinance in a second with another company – Countrywides customer service is really lacking. With the market the way it is and with all the foreclosure you would think Countrywide would want to keep the customers who actually pay on time.

  3. Please tell me someone has been successful in getting Countrywide to drop the PMI on their loan. My equity is more than 50% of the loan, according to the insurance companies who want to write policies. Please, let me hear from someone……….

  4. well – After many phone calls and letters we decided to pay the $130 for the COV from Countrywide. So i called Landsafe and set up the apprasial – if you would call it that. Took off a half day of work to have this guy in sweat pants show up and take 4 pictures of our house, he was there for a total of 5 minutes, if that. I figure that might be a good thing, since the Customer Service Reps did say they just wanted to make sure the property was in good shape and we haven’t trashed it.

    Well, after waiting about 2 week we got a nice letter in the mail “Due to economic conditions and price of recently sold house in your area your new value is 190,000, in order to drop your PMI you will need a principal reduction of 11,000. At the time we did the COV we were at 77% LTV. After a few calls to Countrywide I asked what i thought was a simple question “Once I pay our Principal down to the 152k that was stated in your letter, whether it be 3 months, 6 months or a year from now, at that time will the PMI be dropped or will we have to got through this entire COV process again??” I think that is a pretty straight forward question – but five different people couldn’t give me an answer. Make a long story short i threatened to refinance and at the time the poor Rep stated “Have you check out our good rates, we could probably refinance your loan without that PMI” I totally flipped out and probably said a few things i shouldn’t have.

    anyways we ended up going to Third Federal and getting a 15 year loan at 4.75 percent WITHOUT a PMI. our payment went up about 80 bucks a month but our principle portion of our loan will almost double from the first payment on not to mention dropping about 5 years off the loan.

    In the end, it worked out – As you can imagine i will NEVER do business with Countrywide again – and i urge everyone to get out if you can.

  5. From the sounds of it, I’m not alone in this Countrywide screwing us. However, I have to say you all are really very lucky with the amount of your PMI. My husband and I have paid $415 per month PMI. I’m about to have a nervous breakdown. We have equity in the home and have struggled for 2 years now paying this high risk PMI. They told us at the beginning that they would remove the HIGH pmi payment after 2 months. But no luck. We have struggled greatly over the last 2 years to make our huge house payment of $1570 for a $120,000 loan. It brings tears to my eyes when I read all your problems. They are crooked and are getting away with it and getting saved by the government. Go figure. We have just written letters to our congressman, the president, all our state representatives and the BBB. Sure we won’t get anywhere, but I refuse to give up. Oh and one other footnote….this mess has destroyed our credit. Thank you countrywide for your caring business. And that’s the American way. If anyone has any secrets to get them to at least lower our PMI payment to a more manageable and legal amount, it would be great to hear from you.

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