Contrywide Loans to be Modified

I read this article in the republic and wanted to share with everyone. If you have a Countrywide loan, call your lender and see if you can get a loan modification. You don't have to be in foreclosure of trouble to get the modification...Jeff Cameron

Countrywide loans to be modified

13,000 mortgage holders on Ariz. Eligible for program

By J. Craig Anderson
THE ARIZONA REPUBLIC

Thousands of formers Countrywide Financial customers on the brink of foreclosure will be eligible for lower mortgage payments in the coming months, thanks to a settlement agreement.
Borrowers with subprime and other adjustable-rate loans will be eligible for significant loan modifications beginning in December, Arizona Attorney General Terry Goddard’s office said Monday.
The deal requires Bank of America to modify the loans of struggling borrowers to make their homes.
About 13,000 Arizona mortgage holders are eligible for loan modifications under the agreement, said Susan Segal, Goddard’s public-advocacy division chief.

BofA agrees to modify Countrywide mortgages

The modifications would be based on what each borrower can afford, Segal said, and most borrowers would end up with fixed–rate loans. Some also would get a reduction in the loan’s principal, she said.
In cases where foreclosure already has occurred or cannot be prevented, Segal said the borrowers would be eligible for relocation assistance from Bank of America.
A group of attorneys general representing Arizona, Texas, Ohio, Iowa and Washington state, agreed not to pursue any legal action against the former Countrywide based on its “alleged use of deceptive practices in their mortgage lending business.”
“There is no admission of guilt.” Segal said about the agreement.
Still, it could take weeks or months for every eligible borrower to get a loan modification, she said.
Countrywide is supposed to launch the program Dec. 1 but has said it will need about 60 days to prepare.
Segal said the bank has committed to a staff of 3,200 loss mitigation specialist to provide service to all of the affected customers nationwide.
Six other states, including California, have worked out their own loan-modification deals with Countrywide, formerly the nation’s No. 1 sub-prime lender and overall largest mortgage lender, in exchange for dropping consumer-protection lawsuits.
Segal said similar deals with other subprime and “alternative” mortgage lenders should be forthcoming.

How to get help

The Arizona Attorney General’s office suggests that customers of the former Countrywide Financial open all letters pertaining to their mortgage in coming weeks for further information about loan modifications.

They can also call:

Bank of America
(Acquired Countrywide in June)
800-669-6607

Arizona Attorney General Office
602-542-5763

Arizona Foreclosure Help line
877-448-121