And in areas where the home values have declined significantly, many of them are now realizing the truth that they are unable to pay for their mortgages. The economic recession has affected a lot of homeowners.
The economic recession has affected a lot of homeowners. And in areas where the home values have declined significantly,
many of them are now realizing the truth that they are unable to pay for their mortgages. As most of them were not ready for the risks involved with these loans, they are now finding themselves applying for countrywide loan modification to help avoid foreclosure.
Countrywide Financial Corporation is a Financial advertising and service company (which means that it has possession of stocks of other companies) that develops residential (Countrywide) mortgage banking and other dealings.
Through its National Homeownership Retention Program, the Bank of America provides their customers the significant help and resources that they need to maintain homeownership. It also aids their customers to achieve $8.4 billion to 400,000 Countrywide borrowers nationwide. Not only this, but Countrywide has started positive outreach to help suitable borrowers.
At this time, the Federal government is now encouraging all lenders to consider principal reduction for borrowers who meet certain requirements. If you are a borrower who meets a lender's requirements for a countrywide loan modification option, then chances are you are qualified for a reduction in your principal balance. Although not every homeowner can avail of this option, those who are suited to this will find it very helpful in avoiding possibilities of foreclosure. Here are some helpful guidelines to help you know if you might be eligible.
First, Countrywide settled claims that were valued to be $8.6 billion dollars to homeowners who were holding risky loans and ever since that original settlement, two other states were also included to help other borrowers as well. Borrowers living in these states have the option of applying for a principal reduction. The states that are included in the special Countrywide Loan Modification program are:
Arizona, Texas, California, Connecticut, Iowa, Illinois, North Carolina, Michigan, Florida, Ohio, and Washington - as well as Tennessee, Mississippi and Pennsylvania. If you live in one of these states, then you may be qualified to participate in the Countrywide loan modification program offered as part of the predatory lending lawsuit. However, should you be ineligible, then you can still apply for a reduction of payment in order to avoid foreclosure.
Second, for those homeowners who are stuck in Pay option Arm loans (this is where the loan balance actually augments with each minimum payment), then you are a good candidate for a principal reduction.
In most cases, each Countrywide loan modification is examined on a case by case basis, but borrowers can make the odds better by understanding the lender’s requirements for acceptance and the proper procedures on how to how to complete the application properly. It is highly recommended that homeowners apply for a Countrywide loan modification as most lenders have set aside billions of dollars to assist borrowers in saving their homes.
