Countrywide Loan Modification-Principal Reduction for Everyone?

Lenders warn borrowers, through the terms and conditions and sometimes through meetings with loan consultants, about the risks involved with taking out any form of loan. Although the warnings are ever present, most borrowers and consumers in general tend to assume that financial problems won’t happen to them and as such, it comes as a nasty shock when financial difficulties force them to reluctantly start falling into arrears on repayments. Countrywide loan modification is encouraging homeowners and borrowers to rethink their loan with assistance and make the necessary changes to make the monthly payments more affordable.

Countrywide has signed an agreement with the Treasury Department in which they:
1. Agree to standard modification terms in return for incentive payments
2. Reduction in interest rates to as low as 2%
3. Principal reductions for certain loans
4. Extend loan terms to 40 years
5. Waive late fees, administration charges, bring the loan current
6. Perform a Net Price Value scenario to determine principal reduction option
7. Reach out to at risk homeowners to offer a loan workout

Interested homeowners must be basic eligibility requirements before they will be allowed to submit a loan modification application.   This questionnaire asks:
1. Do you live in the home as your primary residence?
2. Was your loan originated before January 1, 2009?
3. Are you facing a financial hardship situation?
4. Is your current payment more than 31% of your gross monthly income?

You should approach Countrywide in a proactive manner, in spite of its bad past reputation, to get modification of your loan it you find that you are paying too high a portion of your gross monthly income to repay such mortgage loans. Bank of Americain its endeavor to restore the reputation of Countrywide in the form of implementation of new loan modification plans. Even without approach by borrowers Countrywide is reviewing mortgage loans and intimating their new loan modification plans to the borrowers who have failed for more than 60 days or are going to default.

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