Eligibility Requirements for Countrywide Loan Modifications
To qualify, the property must be 1 to 4 units and owner-occupied.
- Borrower must have a qualifying loan such as a subprime mortgage or a pay-option ARM, originating before December 31, 2007.
- Borrower may be current but likely to become 60 days delinquent between Dec. 1, 2008 and June 30, 2012, with a loan-to-value ratio above 75%.
- Subprime ARM resets or Option ARM recasts must be likely to cause or have caused the borrower to become delinquent, providing the loan-to-value ratio is above 75%.
Loan Modification Program Options Offered by Countrywide
Providing borrowers qualify for the HOPE for Homeowners Program, Countrywide will first offer an FHA refinance to eligible borrowers. This program calls for equity sharing. If borrowers do not qualify for the FHA refinance, the following options are available, based on the borrower's present type of loan:
- Subprime Adjustable Rate Mortgages. Borrowers will be offered a five-year extension on the introductory rate or an interest-only rate conversion to as low as 3.5%, which later converts to a fixed-rate mortgage.
- Pay-Option ARM. The negative amortization feature will be removed, and the interest rate reduced to as low as 2.5%; the loan will convert to a fixed-rate mortgage or a 10-year interest-only loan. Upside-down loans will be reduced to 95% of appraised value.
- Subprime Fixed-Rate loans. The interest rate will be reduced to as low as 2.5%; and the loan will convert to a fixed-rate mortgage or a 10-year interest-only loan, with periodic interest rate adjustments.
Call Countrywide at 800.669.6650.
In California, Countrywide participates in Cash for Keys.
