Struggling homeowners needing help with a Countrywide loan modification need to know a few important tips to increase their chance of approval.  Bank of America, owner of Countrywide has implemented a massive loan modification outreach program to their distressed borrowers.  As part of the largest predatory lending settlement in U.S. history, Countrywide has agreed to offer assistance to help their clients avoid foreclosure by modifying existing, unaffordable loans into programs that are affordable and sustainable.

This Countrywide loan modification outreach is funded by $8.4 billion dollars and is anticipated to help approximately 400,000 borrowers who are currently delinquent on their loans.  Some of the options available to eligible borrowers will include:  lower interest rates, waiver of late fees and penalties, longer loan terms and principal forbearance. 

If you are interested in applying for a Countrywide loan modification, make sure you know a few important tips to increase your chances of approval.  Not all borrowers will qualify, so here are some important tips to know before you begin the process:

• Speak with the right department-you may be getting calls from the Collection Department-that is not who you need to be speaking with.  Their job is to get as much money out of you as they can.  Hang up and call the Loss Mitigation Department at 1-800-262-4218.  Make sure that you get the first and last name of the person you are speaking with, their direct line or extension and then write that down on the handy Call Log provided in The Complete Loan Modification Guide.
• Request a Countrwide Loan Modification package be sent to you.  This way you can review it and complete it at your convenience to make sure you complete it properly.  As the counselor to go over the general guidelines for approval, most lenders have implemented a debt ratio criteria they use for qualifying the new loan payment.  This figure generally ranges from 35%-41% as acceptable.  You will need this information later when you complete the financial statements.

Compose a Hardship Letter briefly describing the circumstances that caused your delinquency, what steps have been taken to rectify the situation and your intention to make timely payments from now on.  The Complete Loan Modification Guide can help you write a convincing letter by providing you with a Hardship Letter outline and letter template.

• Figure out a new family budget that eliminates any unnecessary expenses, then determine what an affordable monthly mortgage payment would be.  Now make that your “target” payment and your goal when working towards your Countrywide loan modification.
• Important, be sure to verify that the target payment fits within the lenders guidelines for debt ratio acceptance.  The Complete Loan Modification Guide will show you how to figure your own debt ratio with step by step directions to help make sure you qualify.
• Take your time and carefully complete the required financial statements being sure to list all of your income, expenses and assets.  Remember, the lender will verify this information against your credit report and bank statements-any omissions could result in denial of your Countrywide loan modification.  INSIDER TIP:  homeowners who show large, untapped assets or reserves in a bank account may not be deemed in a hardship situation.
• Pay attention-this is the tricky part-you must complete the financial statements so they clearly demonstrate a financial hardship due to the current mortgage payment, but also show that a new lower loan payment will be affordable and sustainable.  The Complete Loan Modification Guide makes this simple to do by providing you with a Current financial statement and a Proposed financial statement, along with detailed directions to help you complete them properly.  INSIDER TIP:  You will also learn about disposable income requirements
• Now, you can put it all together into a professional and acceptable Countrywide loan modification application package for following the easy submission checklist provided in The Complete Loan Modification Guide.

Homeowners who take the time to research, learn and prepare can increase their chance of success with a Countrywide loan modification to get a low affordable mortgage payment.  It’s not brain surgery, but if you know the general guidelines and what the bank is looking for to approve your loan modification application, you will have a much better outcome, whether you decide to work directly with the bank or hire a loan modification company, a knowledgeable homeowner is a powerful homeowner.  Decide to take control of your financial future by learning, preparing and then making wise decisions to save your family home.

You can get the help you need to understand the Countrywide loan modification process 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