| The economic recession has affected a lot of | | | | you might be eligible. |
| homeowners. And in areas where the home values | | | | First, Countrywide settled claims that were valued to |
| have declined significantly, many of them are now | | | | be $8.6 billion dollars to homeowners who were holding |
| realizing the truth that they are unable to pay for their | | | | risky loans and ever since that original settlement, two |
| mortgages. As most of them were not ready for the | | | | other states were also included to help other |
| risks involved with these loans, they are now finding | | | | borrowers as well. Borrowers living in these states |
| themselves applying for countrywide loan modification | | | | have the option of applying for a principal reduction. |
| to help avoid foreclosure. | | | | The states that are included in the special Countrywide |
| Countrywide Financial Corporation is a Financial | | | | Loan Modification program are: |
| advertising and service company (which means that it | | | | Arizona, Texas, California, Connecticut, Iowa, Illinois, |
| has possession of stocks of other companies) that | | | | North Carolina, Michigan, Florida, Ohio, and Washington - |
| develops residential (Countrywide) mortgage banking | | | | as well as Tennessee, Mississippi and Pennsylvania. If |
| and other dealings. | | | | you live in one of these states, then you may be |
| Through its National Homeownership Retention | | | | qualified to participate in the Countrywide loan |
| Program, the Bank of America provides their | | | | modification program offered as part of the predatory |
| customers the significant help and resources that they | | | | lending lawsuit. However, should you be ineligible, then |
| need to maintain homeownership. It also aids their | | | | you can still apply for a reduction of payment in order |
| customers to achieve $8.4 billion to 400,000 | | | | to avoid foreclosure. |
| Countrywide borrowers nationwide. Not only this, but | | | | Second, for those homeowners who are stuck in Pay |
| Countrywide has started positive outreach to help | | | | option Arm loans (this is where the loan balance |
| suitable borrowers. | | | | actually augments with each minimum payment), then |
| At this time, the Federal government is now | | | | you are a good candidate for a principal reduction. |
| encouraging all lenders to consider principal reduction | | | | In most cases, each Countrywide loan modification is |
| for borrowers who meet certain requirements. If you | | | | examined on a case by case basis, but borrowers |
| are a borrower who meets a lender's requirements | | | | can make the odds better by understanding the |
| for a countrywide loan modification option, then | | | | lender’s requirements for acceptance and the |
| chances are you are qualified for a reduction in your | | | | proper procedures on how to how to complete the |
| principal balance. Although not every homeowner can | | | | application properly. It is highly recommended that |
| avail of this option, those who are suited to this will find | | | | homeowners apply for a Countrywide loan |
| it very helpful in avoiding possibilities of foreclosure. | | | | modification as most lenders have set aside billions of |
| Here are some helpful guidelines to help you know if | | | | dollars to assist borrowers in saving their homes. |