Countrywide Loan Modification: Things to Remember

Countrywide Financial, now known as Bank of America Home Loans, is one of the biggest players in the mortgage industry. In 2006, the height of the sub-prime mortgage boom, Countrywide loans accounted for 20% of all mortgages in the U.S. So it’s not surprising that as the housing market slowed, Countrywide loan modification has received a lot of interest from troubled homeowners. If you have a Countrywide loan that’s in default, this guide offers useful tips on getting a Countrywide loan modification and steering clear of foreclosure.

Proving financial hardship
One of the first requirements for a Countrywide loan modification is financial hardship. You must prove to the agent that your default was caused by inevitable circumstances, such as job loss, medical emergencies or military service. Everything should be contained in a hardship letter - a letter that explains the circumstances of your default and how the loan modification can get you back on track. Make sure to provide solid proof of your hardship: medical bills, contracts, or a confirmation from your employer.

Gathering documents
Many people who qualify for a Countrywide loan modification don’t make it past the trial period because of missing documentation. This has prompted the FHA to change its rules so that all the paperwork is required upfront. Before making that first call, make sure you have everything you need to paint a clear picture of your financial situation. Gather bank statements, credit card and mortgage bills, utility bills, tax forms, and income stubs for at least the past two months, and make sure they’re consistent with your claims.

Budgeting for the future
The bank will also want to know how you plan to stay on track after being given a Countrywide loan modification. The loan may be affordable at the moment, but will you be able to keep it up? Provide proof that you can maintain the loan in the long run, not just for the trial period. A loan modification attorney can help you write down your expenses and create a reasonable monthly budget. That way, you can set realistic goals and know when an offer makes financial sense.

Remember, a Countrywide loan modification is only as effective as you make it. Make the most of the system by following the rules and working with experienced professionals. With careful planning and execution, you can get your loan modified, regain financial stability, and start living on your own terms once and for all.