Countrywide creates fake evidence in foreclosure case

Foreclosures seem to be on the rise, but mortgage companies don't always get a slam dunk when it comes to taking your home from you. In order to foreclose, they've got to have their paperwork in order, something that's not always a given. With mortgages being sold over and over, sometimes companies don't have sufficient documentation to succeed with the foreclosure.

Countrywide Financial Corporation found a way to solve this problem, but it didn't make a judge too happy. The company created false documentation in an effort to prove it had sent certain letters to a homeowner, when in fact Countrywide hadn't sent her those letters.

After successfully completing a Chapter 13 bankruptcy period of 60 months, Countrywide accused the homeowner of having unpaid fees from that bankruptcy period. No dice. Countrywide didn't bring it up during the bankruptcy, so it can't now try to get extra money from her.