Countrywide plans to reduce subprime loan/Option ARM rates

Shared by Sara on Fri Oct 24, 2008 5:47 am
Bank of America Corporation's Countrywide Unit intends to bring about a mortgage modification program which will help reduce the interest rates on subprime loans and option ARMs to as low as 2.5%. Borrowers who owe more than what their home values are may even have their loan balances reduced as a part of the modification plan. Source: http://www.latimes.com/news/printedition/front/la-fi-countrywide24-2008oct24,0,5547798.story

Community Members Opinion

Caron

Joined: 19 Jul 2005

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Posts: 1562
Location: florida

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Posted: Fri Oct 24, 2008 6:00 am Post subject: countrywide loan modification plan

Yes Sara, that great news indeed! Let's just hope that the plan becomes effective with some other companies/lenders as well. This looks like light at the end of the tunnel. Well as I've heard of, Countrywide plans to modify loans for borrowers on owner occupied properties. With the loan modification program, Countrywide intends to create a new monthly payment equal to 34% of the borrowers verified monthly income. And they are expected to reduce borrower's payment by as much as 8.4% billion. If that happens, well then it'll really help the markets get over the financial crisis that's been around for quite some time now. let's keep our fingers crossed for more good news as this. _________________ Mortgage Shopping made easy with booklet

apexoffice

Joined: 09 Jul 2008

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Posts: 103
Location: Atlanta, GA

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Posted: Fri Oct 24, 2008 8:45 am Post subject:

This is very good news and will probably help a lot of homeowners. I was watching 60 minutes last Sunday and there was a clip on Bank of America. The CEO described his meeting with Mr. Paulson, which required the 9 largest banks to accept part of the $700B bailout even if it wasn't needed. The intention was to at least spread some of it out and prevent a stigma on the banks that really need it. The offer for Bank of America was $25B. I am guessing this is what they decided to do with that money. Pretty creative I must say. I just wish that they would have done this much sooner. Too many people have already lost their homes. _________________ Benjamin Smith Atlanta Area Appraiser Apex Appraisals & Consulting, LLC www.appraisalapex.com

Niicss
Niicss

Joined: 03 Oct 2005

Posts: 2579
Location: New Jersey

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Posted: Mon Oct 27, 2008 1:38 am Post subject:

That's a great news. I hope a lot of people will be benefited from the mortgage modification plan. _________________ Good is the Enemy of Great.


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