A Countrywide loan modification featuring a reduction in the principal balance is available to certain borrowers who meet the lenders requirements for this loan modification option.  Although not every homeowner will be offered principal reduction as part of their loan workout, some homeowners will qualify for this very helpful option.  Here is some information to help determine if you might be eligible:

Eleven states were involved in the predatory lending suit in which Countrywide settled claims worth approximately $8.6 billion dollars to homeowners holding risky loans.  Since the original settlement, two additional states have been awarded settlements to help borrowers as well.  For borrowers in these states, a principal reduction is a viable option that homeowners can apply for.  Here are the eleven states as well as the three additional states included in this special Countrywide loan modification program:

Arizona, California, Connecticut, Florida, Illinois, Iowa, Michigan, North Carolina, Ohio, Texas and Washington-as well as Tennessee, Mississippi and Pennsylvania.  If you live in one of these states and your home loan was originated between January 1, 2004 and December 31, 2007 you may be eligible to participate in the Countrywide loan modification program offered as part of the predatory lending lawsuit.  If you do not, you can still apply for help to lower your payment and avoid foreclosure.

Homeowners who are stuck in Pay option Arm loans where the loan balance actually increases with each minimum payment made are good candidates for a principal reduction.  In areas where the home values have declined significantly, many borrowers find themselves underwater-owing much more on their mortgage than their home is worth.  Most borrowers did not understand the risks involved with these loans, and now find themselves with few options except to apply for a loan modification program.  The Federal government is now encouraging all lenders to consider principal reduction for borrowers who meet certain requirements.

Each Countrywide loan modification is reviewed on a case by case basis, but borrowers can increase their chance for approval by knowing the lender’s guidelines for acceptance and how to complete the application properly so it meets the approval criteria.  Homeowners are encourage to apply for a Countrywide loan modification as the lender has set aside billions of dollars to assist borrowers stay in their home.  Help is available for those who know how to get it, so make sure you take the time to research, learn and prepare as you search for ways to stay in your home.

You can get the help you need to understand how to qualify for a Countrywide  loan modification program by ordering and downloading The Complete Loan Modification Guide. This is a low cost, easy to read handbook that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Get started today on the path to secure home ownership, order and download The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com