Countrywide Steps Up To Help Stop Foreclosure

By
Real Estate Agent with Quality Real Estate Services

Today Countrywide Financial Corp announced that it has released a $16 Billion Comprehensive Home Preservation Program. This program will potentially benefit 80,000 borrowers who have a Countrywide loan and are at-risk of default.

Countrywide has committed to refinance or modify up to $16 billion in loans for borrowers who are facing an adjustable rate mortgage reset through to end of 2008.  This is a direct result of Country Wide's participation in the Bush Administration's HOPE NOW Initiative released earlier this year.

In their refinance program, Countrywide has created a special refinance unit to contact approximately 52,000 borrowers to offer refinance options. They have identified and will work to refinance approximately $10 billion in mortgages.

In the modification program, countrywide is working to identify and contact prime and subprime borrowers who are current but unable to qualify for a refinance and are likely to have difficulty affording an upcoming reset. As a result of this initiative, Countrywide will successfully modify $4 billion on loans for approximately 20,000 borrowers through the end of 2008.

If you are facing foreclosure and need assistance, contact your lender first because they may be willing to renegotiate your loan. If you still need help contact go to http://www.fha.gov/foreclosure/ to search to a non-profit counseling agency for free assistance. There are also for-profit foreclosure prevention agencies available. Make sure you research them for integrity and competence before you decide to hire them to negotiate with your lender on your behalf.

Comments (9)

Paul Durry
National Mortgage Field Services - Lawton, OK
Former Broker Associate, CDPE, CIAS, CHMS
Kotambu, only time will tell. But I think this is a great step they have undertaken. I think this will also restore a bit of confidence in their programs.
Oct 24, 2007 04:40 AM
Kotambu "KS" Shabazz
Quality Real Estate Services - Renton, WA
Renton, Real Estate Consultant
Paul- you are right, only time will tell. I'm glad they are taking some action even if it's "token action." Countrywide originated 256 billion in loans for the first half of 2007 alone. 16 billion is just barely scratching the surface for this company. thanks for commenting.
Oct 24, 2007 07:55 AM
Paul Durry
National Mortgage Field Services - Lawton, OK
Former Broker Associate, CDPE, CIAS, CHMS
You also must consider out of the 256 alot are not as risky. What is Wells Fargoand the rest doing? They also have a share in the current mortgae situation. A lot of people fail or just do not know how the mortgage industry works. Countrywide and several of the other larger corporations inherited a lot from the sub-prime market (service the loans), to me they could be considered ther last man standing. Now they must go and do some self battle damage assesment and tend to their wounds.
Oct 24, 2007 08:07 AM
Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"
I saw that article too...but I have had alot of people tell me that countrywide is just doing it for pr...and not really helping....could this be true..?
Oct 24, 2007 08:16 AM
Paul Durry
National Mortgage Field Services - Lawton, OK
Former Broker Associate, CDPE, CIAS, CHMS
Konnie, indeed is a lot of PR, but I think they must follow through with the helping hand also. As I had just commented they must lick their wounds. So I would say it is a mixed effort on their part.
Oct 24, 2007 08:23 AM
Kotambu "KS" Shabazz
Quality Real Estate Services - Renton, WA
Renton, Real Estate Consultant
Paul- I acknowledged that this is "token action" coming from Countrywide. I want to give them credit for doing it though. Maybe they will shame the other national lenders into taking similar action. Anything helps. What's commendable for Countrywide is they are not a bank therefore they don't have the same backing that institutions like WaMu. Wells Fargo, Bank of America and others have. I do recognize they are just acting as a loan servicer for the loans they are renegotiating and not putting their own money at risk because of the restructuring being done. That being said, I still say they are to be applauded for blazing the trail for other national lenders to follow suit.  What have the other institutions that joined the HOPE NOW initiative done?
Oct 24, 2007 09:15 AM
Kotambu "KS" Shabazz
Quality Real Estate Services - Renton, WA
Renton, Real Estate Consultant
Konnie- Good question. Only time will tell.
Oct 24, 2007 09:16 AM
Paul Durry
National Mortgage Field Services - Lawton, OK
Former Broker Associate, CDPE, CIAS, CHMS
I hope you did not take my comments as criticism, saying they are doing enough. I myself only send/recommend Countrywide to all my clients. Many of them have tried to go the ARM route when the rates were all so tempting. Now I know they are glad they followed my advice. I agree that the other institutions should follow suit, as it seems they are letting Countrywide take all the heat within the mortgage industry.
Oct 24, 2007 09:33 AM
Kotambu "KS" Shabazz
Quality Real Estate Services - Renton, WA
Renton, Real Estate Consultant

Paul- we're on the same page. Great comments.

Oct 24, 2007 10:21 AM