Countrywide Loan Modification As a result of the California attorney generals suit, Countrywide agreed to relieve Californians of 3.4 billion dollars worth of loan payments.

A quote for the A G s website states the following:

"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.