Being Approved for a Countrywide Loan Modification
By: Lindsy Emery
Have you been wondering how to go about applying for President Obama’s new federal plan to help homeowners? Are you needing a Countrywide loan modification? Don’t know if you qualify? Countrywide is currently seeking homeowners facing financial crises, who need lower mortgage payments before defaulting to foreclosure on their homes. Here’s the rundown on what you need to know to begin:
Countrywide will need you to complete paperwork in order to start the application process. Based on the information you provide, the lender will review your case to determine if a loan workout is possible. Countrywide’s loan workouts contain:
1. Up to 2% reduced interest rate
2. Up to 40 years loan term extension
3. Principal deferral
With all of the loan modification plans available, the overall goal is to help homeowners have a reduced monthly mortgage payment that is no more than 31% of your gross income. This payment includes your other monthly home expenses ? such as the principal, interest, property taxes, insurance, and HOA dues. Second mortgages can also qualify for additional loan modifications, with further incentives for Countrywide in the form of payments granted to them by the government.
Qualifying for a Countrywide loan modification has 3 stipulations in order to be considered:
1. You loan has to have been prior to January 1, 2009
2. You must already be paying over 31% of your monthly gross income for your mortgage
3. Your mortgage loan amount must be no more than $729,750
In addition to the above factors, you will need to prove your ability to pay a modified payment, by preparing and submitting a thorough income and expense financial statement, along with a letter of hardship to explain the reasons behind your financial distress. If you are able to provide all those things, Countrywide will be more likely to approve you for a loan modification. Just remember, you only have one chance to apply ? so try not to make any mistakes!
Article Source:
http://www.articlecity.com/articles/business_and_finance/article_11193.shtml