All banks offer loan modifications to their borrowers. Nevertheless, the types of loan modifications vary for each lender. Countrywide Home Loans for example was part of a class action civil law suit, specifically focused on pay option adjustable ARMS loans. As a result of this law suit Countrywide is required to modify 400,000 loans equaling 8.64 billion in foreclosure relief.
Borrower’s that have a pay option adjustable ARM are likely to be qualified for the Nationwide Home Retention program if the loan pertains to their primary and only residence. Countrywide loan modifications vary for each borrower, and there are several options ranging from reducing the principal balance to making the borrower current. The general goal is to reduce the monthly interest rate so the monthly payments are affordable. Other banks like National City are reducing monthly interests rates to as low as 1% for a fixed period of time ranging from 18 months to 5 years, after this point there will be a gradual increase. However, a 1% interest rate for any period of time will allow the borrower to alleviate any financial hardships they are currently experiencing. National City Bank have a particularly proficient loan modification department and are a pleasure to work with.
For more loan modification news be sure to visit www.loan-deals.com.
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