Countrywide Home Loan Modification Procedures and Policies

Bank of America bought Countrywide in July of 2008, announcing a new effort to help struggling homeowners pay their mortgages.

Many Countrywide customers have expressed dissatisfaction with Countrywide practices, complaining of poor communication between Countrywide employees (resulting in customers being given different information with each call) and between Countrywide employees and callers. Countrywide was sued in 2008 for predatory lending practices.

Since that lawsuit, Bank of America and Countrywide have begun a mortgage adjustment plan, reducing high mortgage payments to 34% debt-to-income ratios. This would reduce payments, applying a step-rate increase, gradually bringing the amount back to its original level. Only buyers who own and occupy their houses would qualify for this approach.

Another assistance option called HOPE for homeowners is an FHA refinancing plan designed to help people who have lost equity in their houses because of falling home prices. However, if the owner sells the house, he must share a percentage of the equity with the FHA at sale time. Other assistance efforts include interest rate reduction and principal forbearance by Countrywide.

If you are having difficulty paying your Countrywide loan, apply for loan modification. Bank of America may be improving Countrywide loan policies, offering loan modification plans and contacting delinquent borrowers by mail with new alternatives.

For essential tips and facts about how to get approved for a Loan Modification, Visit our simple, no nonsense loan modification guide and resource: Mortgage Modification Loan.