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[C1140]Countrywide And Loan Modification

by Jamie Hanson, Jam

A lot of earlier Countrywide Financial clients that are on the verge of foreclosure, will be qualified for reduced Mortgage repayment in future, this is all due to the settlement agreement. Borrowers along with sub-prime and further variable-rate loans will be suitable for considerable loan modifications. This alteration has come to effect from December, as said by Arizona Attorney General-Terry Goddard.

The deal needs American Financial Institutions to alter the loans for the over stressed and burdened borrowers that are struggling to make their monthly installments for loan repayment easier and affordable. It helps the borrowers by keeping the bank on temporary hold against the action that they take away their homes.

Countrywide Financial Corporation is an expanded Financial advertising and service company (company that has a possession of outstanding stocks of the other company) that is basically involved in residential (Countrywide) mortgage banking and other connected dealings, and the Bank of America has the complete hold on its working.

The loan modification depends on the convenience of the borrower and how affordable it is for him to repay. However, a lot of borrowers often choose the fixed-rate loans. Others would opt for decreasing their loan's principal amount.

In extreme cases, where the foreclosure has already been decided or at times when foreclosure can not be avoided, the borrowers can take help of financial institutions that is the Bank of America. It however, takes some time period for loan modification, may be a few weeks or even months.

Countrywide Loan Modification, through its National Homeownership Retention Program, emphasizes the Bank of America to assure to provide their customers the significant help and resources that they need to maintain homeownership. It also helps their customers to attain $8.4 billion to 400,000 Countrywide borrowers nationwide. Not only this, but Countrywide has started positive outreach to suitable borrowers.

Initially Countrywide often offered subprime, highcost or negative paying back mortgages, but now it has precisely improved on this and also shortened to no or low documentation loans. Restriction on the broker compensation upto 4% of the sum borrowed. Countrywide will further hold 3,900 employees to help its customers for loan modifications, other foreclosure evasion and also home retention measures. Lastly they will also positively contact eligible borrowers and offer modernized loan modifications and further report the growth of this contract to the states participating in this program on regular basis.

Countrywide has taken a lot of efforts to make home retention program successful by positively contacting its eligible borrowers and assisting them by not initiating foreclosures in order to help their eligible borrowers to stay in their homes at that time. They check their ability to modify the loans repayment programs along with their investors willingness to do so. Countrywide will in fact waive off late fees of pending payments while loan modifications and will also not charge the borrowers any modification fees.

However the eligibility of the borrower is to have the current loan:value ratio equal to or above 75% and he should be offending for more than 60 days. Moreover the borrower is sincere on the loan repayment but may possibly become delinquent because of rate reset, or negative amortization etc..

Thus, the Countrywide Loan Modification programs provide a lot of assistance to the strained borrowers and finally help them their way out to repay back the loans without foreclosure.

Consumers who are facing foreclosure have become prime targets for former or current mortgage brokers, and other “loss mitigation” or “loan Modification” companies. You should think twice before sending your money and signing a contract with any company that does not allow you to actually retain an attorney to negotiate on your behalf. Many of these predatory companies state they are “Attorney based”, Attorney backed”, “Stop foreclosure companies”, “Foreclosure consultants” or a myriad of other new terms that keep popping up. In most cases these companies offer money back guarantees, but actually keep their “hard costs” leaving you with a paltry refund when they are unsuccessful in modifying the terms of your original loan. Many of these companies do nothing for you an may just run with your money. In most cases the best they can get for you is a Forbearance agreement from your lender allowing you to repay past due monies, which you may be able to easily do yourself. Be sure to ask if the Attorney is onsite and available for a consultation, and ask for their Bar number as part of your diligence.

Unless you retain an Attorney or a Federally licensed HUD counselor, beware you may be getting scammed out of the last of your hard earned dollars. An attorney can leverage many issues and deal with the actual legal department of your lender who likely wants to avoid going to court on your case and would rather modify your interest rate to get you a new payment you can afford. In speaking with California Real Estate Attorney Marc Bonanni of Consumer Debt Advocate ( http://www.consumerdebtadvocate.net ), a law firm specializing in just such Home Loan Modifications and Loss Mitigation in all 50 states, Marc told me that “ We've had tremendous success working with lenders to get them to modify the existing terms of the loan, lowering interest rates and monthly payments to one the borrower can afford, and also getting them to forgive past due balances or principal balance with forbearance agreements to avoid a foreclosure. It all is predicated on the true financial hardship we can prove to the lender and if there were any Truth in Lending violations or Predatory Lending violations on the original loan. Mortgage fraud has been rampant, specially with sub-prime borrowers and our success rate has been excellent in the loan modification process”. Marc also states that “Unfortunately, many of our clients have been through the ringer with these non attorney loan modification companies who wind up doing nothing for them and who make matters worse as they cannot afford the client any legal protection. By the time they get to us, it may be too late to save their home and they are out thousands of dollars and critical time that were wasted in a poorly handled attempt to modify their loan by non-attorneys who are dispensing legal advice. It's really sad when I have to tell a potential client who I knew we could have helped save their home and modify their loan that they are too far down the path with their lender to stop the pending auction of their home.”

Also beware of companies who offer to save your home and who offer you a new loan, but require you to deed title to them for doing so. Most of these scams are stealing all of your equity by paying the amount you are in default to the bank. If you have $60,000 in equity, and are $11,000 in the arrears with your lender, that company just made a 6x return off their investment and left you with a mortgage payment and no equity in your home. They will then be waiting for you to default or will force you out of your home to realize their profit. By hiring an Attorney, you could likely get your lender to take that arrearage you owe and make a repayment plan you can afford, or even get them to put that money on the back of your loan so you can start meeting your new lower monthly obligation.

Regardless of your situation, it is important to make sure you due diligence on any company you engage to help you avoid foreclosure. Beware of the scams that are out there and make sure an attorney is actually retained by you as part of the process to protect your legal rights and ensure both compliance and success in the loan modification process. Licensed Attorneys are held to a strict code of conduct and higher ethical standards, and although they cannot guarantee a successful outcome of your case, they are much more likely to take it only if they feel they have a strong chance of success.

Article Source : Pg. 297

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Both Jamie Hanson & Bill Baskin are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Jamie Hanson has sinced written about articles on various topics from Home Management, Environment and Desserts. Worried to repay your loans, want to get a genuine help, your problem is solved, log on , looking f. Jamie Hanson's top article generates over 1500000 views. to your Favourites.

Bill Baskin has sinced written about articles on various topics from Finances, Car Loans and Finances. Bill Baskin is a nationally recognized expert on Mortgage, Credit, Automotive, and Debt topics, having been a quoted source on a variety of newspaper, radio, and television pieces. He currently writes for. Bill Baskin's top article generates over 1900 views. to your Favourites.