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A recent news piece from CNN reports that the home loan giant has come under the radar for suspicion of wrong doings, which have warranted an order of subpoena by a federal judge in Pittsburgh, Pennsylvania.

It is suspected that Countrywide, among other lenders, had attempted to modify loan agreements it originally made with borrowers with questionable credit. The company is also under allegations of harassing borrowers who were under bankruptcy protection, threatening to foreclose even after court proceedings had legally arranged a repayment plan.

Violating the automatic stay is a serious liability, I have pointed out in several posts and in the chapter 7 page how the automatic stay becomes your shield when you’re under going bankruptcy proceedings. Lenders will take chances and sometimes, as it is actually the case with many, their automated computer systems take over when payments are not received. However when representatives of the company begin to call you in person, this is no longer considered an automated response by their system. All “humans” within that company should be aware that you’re account is on hold because of your bankruptcy petition.

If this should happen to you, you need to take action by reporting the event to your attorney at once. This is why it is important to have representation. Your attorney would know exactly what to do, should you become a target of collection during your proceedings. Lawsuits for punitive damages are not uncommon and though most lenders won’t take the risk, for some reason others do, and it not only complicates your process but it can add legal costs.

Countrywide admits to having handled some debts erroneously but denies harassing bankruptcy protected borrowers to collect money.

Foreclosures for the lender have risen dramatically causing share values to slide significantly, however I think the biggest burden the company faces at this point is the surplus of homes in the tens of thousands it now owns across the country that it must now unload at severe discounts.

Are we already in a recession? I have been reading up on this subject and found different opinions on the recession issue. Many still think that we’re not, because technology companies like Google and Facebook seem to be hiring at a steady pace, while startup companies are still being funded, so these would be signs that things are going well or at least that there’s an upbeat attitude over all.

I’m not a doom and gloom kind of guy and I hate to be right when it comes to negative predictions, which I don’t often make. But we don’t revolve around a partially good economy, the housing crisis and sub prime lending mess are already here and they are costing millions everyday in defaulted loans. Bankruptcy cases are climbing and people are losing their homes and ruining their financial lives. I really do wonder what is going to happen with all those homes left behind when there’s no more demand.

So my findings tell me that while many economic experts believe we’re not in a recession, no one is denying that growth has slowed down everywhere and that to me signifies that a recession has started. Officially the National Bureau of Economic Research (NBER) will declare a recession when we’re half way through it. I fail to see the sense in that.

The only growth I seem to have any control over is my savings account and maybe my 401k if I keep up with it and make necessary changes when market conditions begin to move downward. I think we’re all thinking about the same thing right about now, which is “what’s going to happen in the next year?” Will we be in full recession and what will the Fed’s plan be to get us out of it. Will it be another drop in interest rates to encourage borrowing and spending again? I’m dying to know where we’re headed.

Till then all we can do to gain some protection is to adhere to more conservative spending. Only spend on true necessities and stash away the rest of your available cash, looks like it may turn out to be a tough winter. Many people will argue that this is bad for the economy, but does continuing to spend money really extend as something that’s collectively good for all? Do I really need to buy just to buy as long as it’s good for the economy? Seems very unfair to put that responsibility on consumers in a time like this.