Countrywide and Obama change the federal loan plan12 Feb 2010
Wondering how the Obama federal loan modification plan will affect your Countrywide loan workout application? Will it be easier to qualify for the help you need to lower your monthly mortgage payment? Even if you have already applied for a loan modification with Countrywide you may have a second chance. Learn more about how the plan works and if you will benefit.
Thousands of struggling homeowners have felt like they are painted into a corner with no option but to lose their home. A Countrywide mortgage modification has been very difficult for many borrowers to qualify for. The Obama federal loan modification plan will aim to provide relief to almost 5 million homeowners across the country, many of whom might have already been turned down for a loan workout. Now, participating lender must agree to review the eligibility of every homeowner who requests information about the plan to determine if they might qualify. During the review process, any foreclosure will be stopped until a determination of eligibility is made.
Countrywide is authorized to offer the Obama federal loan modification plan, and will accept applications from all interested homeowners. The loan workout program will offer substantial interest rate reductions to qualified homeowners-as low as 2%. In return, the Treasury department is offering monetary incentives and is sharing the costs with the lenders to help entice their participation. But the good news is the borrowers who successfully maintain the new modified loan will also be paid a bonus-up to a $5000 credit towards their loan balance.
The plan has been expanded to include second liens as well. Now homeowners who have lost a significant amount of equity may have their interest rate reduced to 1% or in some cases see the entire second loan balance forgiven. Countrywide will be paid 12 cents on the dollar by the Treasury Department for second liens that are retired and that meet certain qualifications.
What should you do if you need a Countrywide loan modification and are interested in the Obama plan? Since the lender is flooded with requests, borrowers are being advised to start gathering the required paperwork and learn more about how to qualify for this free loan workout program. Successful candidates will have an edge by learning More information about the plan, a pre-qualification, and training necessary changes the application documents to be submitted in advance, so that it has a better chance at achieving the adoption of principles.