Current Changes in Countrywide's Home Loan Modification

Having been bought by the bank of America in July 2008, Countrywide bank is now a major contender in mortgage lending. Although many people have heard about its plans to help homeowners modify and refinance their loans when they are having trouble paying, there are still questions about the loan modification process’ details and qualifications.

The bank’s image was badly tainted in 2008 by a lawsuit from state attorney generals for predatory lending practices. This is further enhanced by the amount of complains from dissatisfied customers, a simple search on the internet for "countrywide loans" results in many angry message boards. The most common complain is that the countrywide customer service representatives often misrepresent themselves to customers causing clerical errors that cost homeowners time and money.

The post lawsuit period saw countrywide give a statement on a new plan that would help troubled homeowners more efficiently. They have lowered their monthly payments to within 34% of a person’s gross monthly income for loan modification. The loans have a step-rate interest payment as time goes by. This will enable people to meet their monthly mortgage payments. To qualify for a home loan modification from countrywide you must be a current borrower and be the primary occupant of the home.

Countrywide modification loans include HOPE for FHA loans, interest rate reductions and principle reductions to recover lost equity. HOPE is a refinancing program that allows people with low home equity to access a special equity-sharing program. When the homeowner decides to sell the home later, they will follow a scale of how much home equity they will give to the FHA at the time.

For those who already have mortgages with countryside its good to get a loan modification for monthly payment that is too high a percentage for your monthly income. Although Countrywide’s past reputation is tainted bank of America is working hard to change that image and procedures. After the lawsuit, new plans for loan modification have also been implemented. With constant automatic reviews countrywide is able to send letters to borrowers who are sixty days late or are about to be late informing them of the new loan modification procedures.

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.