Countrywide Loan Modification

Loan Modification Program Series 2: Countrywide (Bank of America) Homeowner Retention Program

The program began December 1, 2008 and has no specified end date. This program will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principle reductions. To be eligible for the program, borrowers must have received a qualifying subprime mortgage or a pay-option adjustable rte mortgage prior to December 31, 2007.

Other requirements:

The borrower is 60 days or more delinquent

The borrower is current today but becomes 60 days or more delinquent prior to June 30, 2012

The borrower has a subprime hybrid ARM and is likely to become 60 days or more delinquent as a consequence of a rate reset

The borrower has a pay-option ARM and is likely to become 60 days or more delinquent as a consequence of a rate reset or payment recast

Modifications would be designed to achieve sustainable payments at a 34% debt-to-income (DTI) ratio of principal, interest, taxes and insurance.

The current loan-to-value (LTV) ratio is 75% or greater
If a borrower qualifies for the program, Countrywide (Bank of America) will waive late/delinquency fees for missed payment and when possible will waive prepayment penalties whether or not the new loan is originated with Countrywide. Prior to modifying and existing loan, Countrywide (Bank of America) will first offer to refinance the borrower under the HOPE Program. If the borrower is not eligible for the HOPE program, Countrywide (Bank of America) will offer one of these programs based on product type:

Subprime 2,3,5,7 and 10-year hybrid ARM

Borrowers will receive an extension/restoration of the introductory rate for five years. If the Borrower cannot afford this rate, they will be considered on a streamlined basis for a five-year rate reduction to as low as 3.5% and a conversion to a fixed-rate mortgage at the end of five years.
Pay-option ARM

The negative amortization feature will be eliminated from the loan, the mortgage rate will be reduced to as low as 2.5%, and the loan will be converted into a fixed-rate mortgage or a ten-year interest-only loan. On single property owners with no equity, the principal balance will be written-down to as low as 95% of the current value of the property.
Subprime Fixed-Rate

The mortgage rate will be reduced to as low as 2.5% and the loan will be converted into a fixed-rate or a 10-year interest only loan.
For more information, contact the Homeownership Retention Division at (800) 669-6650.

Related Topics:

<a href=”http://www.sellingnorthernnv.com/2009/01/loan-modification-program-series-1.html” >Series 1: CitiGroup/CitiMortgage Program</a>

<a href=”http://www.sellingnorthernnv.com/2008/05/hope-now-national-hotline.html” >Hope Now Program</a>