Countrywide Home Loan Foreclosures
Home foreclosures are the end result when owners fail to pay their mortgage for several months. When the bank makes the decision to start the process, they file a public default notice. If the defaulted fees are not paid and the owners can not sell the house, then the mortgage holder has the option to take back the home. When banks choose this option they usually do it to resell the home on the open market. Real Estate Owned (REO) properties are houses that the bank has taken back. Countrywide home loan foreclosures have increased over the last six months. Fortunately Countrywide is actively taking a stance in helping present clients pay off their mortgages while encouraging new clients to acquire their mortgages through them.
Countrywide is offering non-countrywide customers a 5.75% rate on a 30 year refinance loan while existing countrywide customers receive a rate based on their past payment history. Countrywide home loan foreclosures have been on the rise as existing customers are not able to make their payments. As I mentioned before, Countrywide is creating several options to assist their customers pay off their home loans. So what are these methods?
One alternative that Countrywide may offer you is reducing your home loan interest rate. Interest rates make a vast difference when it comes to making a home loan payment. For example, if you purchased a home for $150,000 at a 5% interest rate then you will have paid $7,449.74 after 1 year of paying your monthly payment of $805.23 . So if Countrywide lowered your interest rate only 1% then you will have paid $5951.92 after 1 year of paying your monthly payments . That is a difference of $1,497.82 a year. Obviously, interest rates make a a vast difference on your payoff amount.
Another method that Countrywide is using to assist customers pay their home loans off is through refinancing their home loan. Let's say you now have a fifteen year mortgage at $150,000 with a 7% interest rate. If you are finding it hard to make these payments so you look into refinancing your mortgage to a 30 year note instead of 15 years. With the mortgage rate remaining $150,000 at 7% interest rate for thirty years, your payment would be reduced from $1,348 to $998 which is a difference of $350 a month. This in today's cost of living would pay for your gas to commute to work.
Countrywide home loan foreclosures have been on the rise over the last six months, it is encouraging that they are finding ways to relieve their customers. If you are having problems making your payments you should consider refinancing your current home loan.
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Published March 29th, 2008
Filed in Real Estate