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Countrywide Loan Modification |
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Countrywide Loan Modification
To settle a lawsuit with the state of California, Countrywide
agreed to relieve Californians of 3.4 billion dollars worth of loan
payments.
The California AGs website reads as follows:
"More
specifically, the modification program covers subprime and pay-option
adjustable-rate mortgage loans in which the borrower’s first payment
was due between January 1, 2004 and December 31, 2007. The program will
be available for loans in default that are secured by owner-occupied
property and serviced by Countrywide Financial or one of its
affiliates. In addition, the borrower’s loan balance must be 75% or
more of the current value of the home, and the borrower must be able to
afford adjusted monthly payments under the terms of the modification."
Borrowers of Pay Option arm loans may be able to have their principle
reduced to 95% of the homes current value and may qualify for and
interest only payments.
subprime adjustable rates loans may be eligible to return to their original rates or even rates down to 3.5%.
subprime fixed rate loans may be eligible for fixed rate reductions
Borrowers with Alt-A and prime loans, may also be able to negotiate modifications.
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Last Updated ( Wednesday, 21 January 2009 )
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