Countrywide Bank has announced an extension to a foreclosure moratorium until April 30, 2009.  The lender is in the process of getting approved to offer the Treasury Department's loan modification plan, Home Affordable.  Once Countrywide finalizes their agreement, they will be able to offer this federally subsidized plan to its borrowers.  In the meantime, they are holding off on foreclosures to give homeowners a chance to apply for help.

Countrywide is expected to finalize their approval with the Feds in the next couple of weeks, and will then be able to participate in the incentives provided by the Treasury Department for each qualified loan modification utilizing the Home Affordable Plan.  Countrywide owns or services almost 20% of all residential mortgages across the country, so their participation will potentially bring relief to thousands of homeowners stuck with unaffordable home loans.

A Countrywide loan modification using the federal plan will involve an application process, and the homeowner's paperwork will be reviewed for eligibility.  A borrower must be able to meet certain basic criteria, including:

1. Must live in the home as your primary residence
2. Your loan must have been originated prior to January 1, 2009
3. Your loan amount must be less than $729,750-does not have to be owned or serviced by Fannie Mae or Freddie Mac
4. The current house payment must be greater than 31% of your gross monthly income-including property taxes, homeowners insurance and homeowners dues

If you can meet those guidelines, you should begin the application process and start preparing your paperwwork.  A Countrywide loan modification using the Home Affordable plan will offer qualified borrowers:

1. Interest rate reduction to as low as 2%
2. Extended loan term to 40 years
3. Principal forbearance

The goal is to achieve a new house payment that equals just 31% of the households gross monthly income.  The new modified payment will be on a trial 3 month basis, and if all those payments on made on time, those payments will be fixed for five years.  Successful borrowers who make all the payments on time will be eligible for a bonus incentive of $1000 per year, for five years.  This pay for success bonus will be applied directly towards the outstanding loan balance.

It is important to remember that not all homeowners will qualify for the Countrywide loan modification plan.  Homeowners must be able to prepare their application and complete their paperwork correctly to give them the best chance of success.  Now is the time to learn and prepare-before you contact the bank and apply for the modification.  This could be the second chance you need to stay in your home-make sure you do it right!

We agree with President Obama-you can do it yourself!  The new programs do not involve any negotiating-either you qualify or you don't.  WIth just a little upfront knowledge, you can successfully work with Countrywide directly.  Get the help you need to apply and qualify for a loan modification by ordering and downloading the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read, home edition loan mod kit 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. Learn how to qualify for the Obama Federal loan modification plan. Need help completing your loan modification forms?  Find out about our Customer Assist program-you work one-on-one with your very own expert to make sure your application is completed correctly. 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