LOAN MODIFICATION PROGRAM COUNTRYWIDE (BANK OF AMERICA)

When in trouble with your mortgage payments the first avenue one should explore is Loan Modification. You can get a full package on Loan Modification at www.NoForeclosureAz.com Below is information about Countrywide Loan Modification programs. Please review and I hope you find this helpful!

Jeff Cameron


Countrywide Financial (Bank of America) Program
What is the Countrywide Financial (Bank of America) Program? The Homeownership Retention Program for Countrywide Customers Program will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principle reductions for nearly 400,000 Countrywide customers nationwide.
When does it Begin? The program begins Dec. 1, 2008, and has no end date specified.


Who is eligible? Borrowers eligible for loan modifications under this program must have received a qualifying subprime mortgage or a pay-option adjustable rate mortgage (ARM) prior to Dec. 31, 2007, and the property must be a one- to four-unit owner-occupied residential property. In addition, certain other requirements are set out in the program:
 The borrower is 60 days or more delinquent, and the current loan-to-value ratio is 75 percent or greater;
 The borrower is current today but becomes 60 days or more delinquent at any time prior to June 30, 2012, and the loan-to-value ratio at the time of the modification is 75 percent or greater;
 The borrower has a subprime hybrid ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset, and the loan-to-value ratio at the time of the modification is 75 percent or greater;
 The borrower has a pay-option ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset or payment recast based on negative amortization, and the loan-to-value ratio at the time of the modification is 75 percent or greater.
 Modifications would be designed to achieve sustainable payments at a 34 percent debt-to-income (DTI) ratio of principal, interest, taxes and insurance.
In addition, customers may be eligible for the early payment default benefit of this program if: The customer has a Countrywide-originated first lien loan; the loan was funded on or prior to Dec. 31, 2007; the customer's primary residence is the property that secures the loan; the customer has made three or fewer payments over the life of the loan (the borrower's state may expand eligibility); and the customer has either lost his home to foreclosure or is at least 120 days in arrears on mortgage payments.
Who should I contact? Countrywide will begin its proactive outreach to eligible borrowers on Dec. 1, 2008. You can reach the Homeownership Retention Division at (800) 669-6650.
What costs do I have to pay?  Countrywide will waive late/delinquency fees for missed payments when modifying loans and will not charge modification fees to borrowers in the participating states.
 When possible, Countrywide will waive prepayment penalties in connection with any workout or refinance, whether or not the new loan is originated with Countrywide.
What options does the Homeownership Retention Program offer? Countrywide will first offer eligible borrowers an FHA refinance under the HOPE for Homeowners Program. If not eligible for that program, Countrywide will offer these specific programs based on product type.

Subprime 2-, 3- 5-, 7- and 10-Year Hybrid ARM borrowers will receive an unsolicited extension/restoration of the introductory rate for five years and an invitation to contact Countrywide for additional relief if affordability concerns persist. Borrowers who cannot afford the introductory rate will be considered on a streamlined basis for a five-year interest rate reduction to as low as 3.5 percent (based on the affordability equation) and a conversion to a fixed-rate mortgage at the end of five years.

Pay-option ARM borrowers accepting a streamlined loan modification option will have the negative amortization feature eliminated from their loan. The mortgage interest rate will be reduced to as low as 2.5 percent, and the loan will be converted into either a fixed-rate mortgage or a ten-year interest-only loan. For single property owners who currently have no equity in their homes, Countrywide will write-down the principal balance to as low as 95 percent of the current value of the property to restore an equity position.

Subprime Fixed-Rate borrowers will receive a streamlined loan modification, by reducing the mortgage interest rate to as low as 2.5 percent and converting the loan into a fixed-rate or 10-year interest only loan with affordable step rate increases and lifetime cap.

Foreclosure Relief Program: Countrywide will allocate up to $150 million nationally under a foreclosure relief program to provide relief for borrowers whose loans were originated directly by Countrywide (or through brokers) with owner-occupied properties who have either experienced a foreclosure sale or are 120 days or more delinquent as of the date of this agreement. These borrowers will be eligible for the payment if they made three or fewer payments over the life of the loan (or meet more inclusive criteria determined by each state). The funds will be allocated for each state through a pro-rata formula based on the number of eligible borrowers with a Countrywide-originated first mortgage.
How can I learn more about the program and start the application process?
The Homeownership Retention Program is not available until Dec. 1, 2008. Please visit the Countrywide Financial Web site for more information at http://my.countrywide.com/media/FinancialAssistance1.html

Arizona Housing Finance Authoirty- Down Payment Assistance Program!

Down Payment Assistance Program
The major stumbling block for many first-time homebuyers is the lack of sufficient funds for the downpayment and closing costs involved in the purchase of the home. The amount of assistance available under this program is adjusted based on the homebuyer's income:
Above 80% Area Median Income (AMI): up to 5% of the purchase price or appraisal whichever is less. 60-80% AMI: up to 10% of purchase price or appraisal, whichever is less, plus up to $3,000 for closing costs.~Below 60% AMI: up to 15% of purchase price or appraisal, whichever is less, plus up to $3,000 for closing costs.
~Maximum of $20,000 in combined assistance.

If the buyer is above 80% AMI, the assistance must be used with either the MRB or MCC programs. Buyers with incomes at or below 80% AMI must participate in homeownership counseling classes. These classes or meetings are free and are held at various times and in various locations around the state, excluding Maricopa and Pima Counties.
The amount of assistance is dependent on five factors:
1) Amount of household income.
2) Purchase price of the house or appraised value, whichever is less.
3) Actual closing costs on the house.
4) Amount of household savings and assets.
5) Other gifts or assistance the buyer may be receiving.
For more information on this program please visit http://www.housingaz.com/azhfa/dpap.aspx

Fannie Mae to Temporarily Halt Foreclosure Sales and Evictions

Fannie Mae has issued Lender Letter 04-08 announcing that it is halting all foreclosure sales on occupied single-family properties that are scheduled to occur from November 26, 2008 through January 9, 2009. This temporary halt also applies to eviction lockouts of occupied single-family properties.
These actions allow affected borrowers to retain their homes while Fannie Mae works with its regulator and conservator, the Federal Housing Finance Agency, to implement the previously announced streamlined loan modification program by December 15, 2008.
To facilitate borrower communications, servicers must instruct foreclosure attorneys to send letters to borrowers whose foreclosure sales are halted urging them to contact their servicer, so that together, the servicer and borrower can continue working to resolve the delinquency.
For complete details, including other servicing and reporting requirements, please see Fannie Mae Lender Letter 04-08 on our 2008 Lender Announcements and Letters page on eFannieMae.com and the news release on fanniemae.com

RATE CUTS ACROSS THE WORLD

This saves everyone with an adjustable rate mortgage, credit cards and line of credit on a monthly basis. This is better than a tax rebate. Between these types of actions and lower gas prices, the consumer can step up and help us through this mess...Jeff Cameron


Fed Orders Emergency Interest Rate Cut
posted: 13 MINUTES AGOcomments: 493
filed under: Financial Crisis
Acting in concert with central banks around the globe, the Federal Reserve says it is slashing its key interest rate by a half-point to 1.50 percent. The move continues a string of aggressive actions by Ben Bernanke and the Fed to cope with the worst financial crisis since the 1929 stock market crash. On Tuesday, the Fed said that it would buy massive amounts of "commercial paper" -- a short-term financing option many firms rely on to fund day-to-day operations.

Read the full article here: http://money.aol.com/news/articles/_a/bbdp/fed-orders-emergency-interest-rate-cut/204500

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

Another Cameron Team Listing Under Contract

We have acceptance!! We just listed the home at 10974 E. Mary Katherine in Scottsdale and it's Pending!! This home is bank owned and was listed at a great price which brought us a buyer and approval within a couple days. We hope to get this one pushed through quickly and closed.

We are continuing to work with Indymac Bank and selling REO properties. We are also working towards relationships with other Lenders and Banks to list and sell more REO's.

If you have questions about buying or selling a home, or want to know more information about REO properties, please feel free to contact us at 480-502-7699.

LOAN MODIFICATIONS

I blogged about loan modifications a couple of weeks ago and had many questions about it.
Let me first explain what a loan modification is. It is when the mortgage company modifies the note for a borrower. They modify the note in three different ways:
1. Lower the interest rate.
2. Extend the time until the next rate change.
3. Lower the amount secured by the note.

You may ask, "why would a bank do a loan modification?" Usually they are for people in arrears and needing assistance prior to foreclosure. Today they are being done for people to secure them in their home and remove the desire to walk away from the mortgage. Our market is creating enough bank owed property as it is and the banks want to keep more from entering the market. They can achieve that by keeping people in homes through lowering rates, extending times to rate adjustments and lowering loan balances.

I called my bank, Country Wide, and asked for a loan modification. They extended the time for adjustment on my 5/1 ARM to 60 months forward. Giving me 5 more years until the adjustment date. They also lowered my interest rate from 5.25% to 5%. My loan is a JUMBO and rates for a JUMBO are in the low 7's. I think this is AWESOME. It is saving me $100 per month in interest and took the fear of that future adjustment out of my mind.

I highly suggest you call your mortgage company and ask about a "Loan Modification."

WORK OUTS AND LOAN MODIFICATION

The new biggie in real estate is loan "Work outs" and "Modifications." The Federal Reserve Chairman, Ben Bernanke, stated publicly last week for banks to be more aggressive with these tools. It spooked the market that he publicly stated banks need to consider lowering the loan amount in places where the value of a home has dropped below what is owed on the mortgage. It spooked the market because the market is already having a difficult time value the mortgage backed securities with all the foreclosures. If they start lowering the amount owed on the good notes, what are they worth????

So, let's get back to loan WORK OUTS. What are they. Work outs are when a buyer is running into trouble and may look at a short sale or a foreclosure. Technically, before selling or walking away form the home the borrower should be talking with the mortgage company. Finding out if there is anything they can "work out" before walking away or selling short. Work outs can be many different things such as:

lowering the loan amount
forgiving past due payments
lowering the interest rate
extending a date for a loan adjustment
extending the date for a foreclosure on the home

When it comes to LOAN MODIFICATIONS we usually see a different story. This is a case where the lender wants to keep a borrower comfortable in their home and not drive them to thinking of not paying the mortgage, short sale or foreclosure. You should all call your bank and talk about a loan modification. Loan modifications include the similar adjustments:

Lowering loan amount
Lowering an interest rate
Extending the time frame to a rate adjustment

These are all good actions for the borrower. Call today and ask for the loan modification department. You may be able to lower your rate, lower your loan amount or extend the time to your next adjustment.