| The issue of eligibility first precedes the consideration | | | | (and un- paid) future mortgage payment. |
| for a loan modification by the Countrywide bank. The | | | | Under this plan the regular payment will continue that is |
| fundamentals in the requirements for a loan | | | | the $3000 sum as given in the example above, but in |
| modification basically involve the case of personal | | | | addition to the new longer period split sum, as a means |
| financial crises short of bankruptcy, and the willingness | | | | of lessening the payment burdens upon the person |
| of the home owner to keep the property. These form | | | | who applies for the loan modification scheme. The |
| the crux of the application requirement for a | | | | ultimate goal of this scheme is to avoid foreclosure |
| Countrywide Loan Modification. | | | | and to help the debtor obtain an alternative means of |
| Upon application, a document will be sent to the | | | | repaying the mortgage debt owed. |
| Countrywide loss mitigation department, which will | | | | Banks readily opt for this option because a foreclosure |
| contain the following: | | | | is an expensive affair for the banks, as they would |
| · A hardship letter explaining the case for your | | | | have to shelve out a lot of money for attorney fees, |
| default, and how you intend to pay and how you also | | | | holding costs, taxes and insurance. The whole scheme |
| intend to be consistent in such a payment, and your | | | | if diligently followed will help to infuse a mechanism of |
| past attempts at resolving the mortgage which failed | | | | financial aid and leverage, which helps the indebted |
| · Recent income documents, which would | | | | party avoid the unpleasant consequences of a non |
| include the following: pay stubs, the w2 form, | | | | modified home loan. The scheme, as you can also see, |
| unemployment status statements, and benefit | | | | requires the financial commitment of the debtor, and |
| statements | | | | the willingness of the proposed |
| · Bank statements and tax returns for the last | | | | mortgagee-Countrywide- to lend depending on eligibility |
| two years, and complete and accurate financial | | | | of the debtor to qualify for a loan modification. |
| statements. | | | | All such modifications do not and will not eventually end |
| The persons who would most apply for this loan | | | | in the dreaded foreclosure trap- which is not beneficial |
| modification are those who have fallen behind on their | | | | to either party, for it implies the loss of a home and the |
| mortgage payments; for instance if a mortgage costs | | | | foreclosure loss sums on the part of the bank |
| the home owner the monthly sum of $3000, and the | | | | providing credit in this form. A careful reading of the |
| home owner is three months behind on payments, with | | | | above will no doubt give you a concise idea of the |
| the default total at $9000, Countrywide steps in to split | | | | scope and usefulness of a Countrywide loan |
| the default sum into a longer period of say 6-12 | | | | modification. |
| months, and that is added to the existing and expected | | | | |