Countrywide Loan Modification Means Delayed Foreclosures_48324

If you are a Countrywide borrower, you have time to apply for renegotiation of your current loan. Mortgage holders who need a Countrywide loan modification are included under President Obama's federal plan, titled Home Affordable Loan Modification.

The federal plan allows Countrywide time to implement its plan, which means that there will be a delay in foreclosure proceedings. The Obama plan is estimated to help approximately 5 million American homeowners, by offering aggressive loan work around terms.

The temporary halt on foreclosure proceedings means that borrowers have time to start the application process. Under the new federal guidelines, you may qualify for a loan modification, if you meet these requirements:

-- your current mortgage is greater than 31% of your gross monthly income, once you include taxes, insurance, and homeowners association dues;
-- your loan originated before January 1, 2009, and is under $729,750;
-- your current financial hardship makes the existing payment unaffordable;
-- the mortgage is on your principal residence.

Under the new plan's terms, your interest rate may be reduced to as low as 2%, the term of your loan may be extended to as long as 40 years, and you may be eligible to have a portion of your principal balance deferred. The plan is designed to result in a new mortgage payment equal to just 31% of your gross monthly income. Countrywide will receive an incentive payment from the federal government for each approved loan modification, under its new guidelines, and the government will share some of the lost revenue costs resulting from the new loan terms. What this means is that Countrywide is more motivated than before, to assist qualified mortgage holders.

So if you have been worried, or even just concerned, about Countrywide and your current loan arrangements with them, take heart. The foreclosure delay means that there are more opportunities for folks like you to arrive at an agreement with the lender. No, not all homeowners are eligible, but you can increase your likelihood of qualifying for the Countrywide loan modification plan, by properly preparing your paperwork. Act now to take the steps you need in order to stay in your home, by renegotiating your mortgage loan agreement.