[Tamara M]

Foreclosures? We live in CA and have 2 homes that will be going into foreclosure. Countrywide will not negotiate with us. What will happen to them when they only get maybe half of what all these thousands of homes they leant the money out for? They would have been better off to rewrote the loans don't you think?

[Becca/FL]

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Countrywide to Modify $16B in Loans
AP
Posted: 2007-10-23 07:13:15
CALABASAS, Calif. (AP) - Countrywide Financial Corp., the nation's largest mortgage lender, said Tuesday it will begin calling borrowers to offer refinancing or modifications on $16 billion in loans whose interest rate is set to adjust by the end of 2008.

Countrywide has been under fire since early July - it has had difficulties with loan financing, its chief executive has been criticized for selling hundreds of millions of dollars in stock and it faces pressure from the government to help keep people from losing their homes.

"Unprecedented times call for unprecedented remedies," Countrywide President and Chief Operating Officer David Sambol said in a statement. "We are determined to assist borrowers who have the willingness and wherewithal to remain in their homes, but need a little help to do it."

Countrywide said it would reach out to borrowers who are current on their loans but are facing an imminent rate reset to discuss options. Countrywide said it would refinance about $10 billion in loans and modify another $4 billion.

It also plans to contact borrowers of some $2.2 billion who are late on their loans and having trouble paying because of a recent rate reset.

In total Countrywide's plan would reach out to about 82,000 borrowers for some kind of relief.

Subprime mortgages - those made to people with poor credit histories - have become a problem for the global economy. As people who took out subprime mortgages from 2005 through the first half of 2007 defaulted at increasing rates, bonds backed by those mortgages began to lose value.

More than 50 mortgage lenders have gone out of business this year. A seizure in the global credit markets precipitated by the mortgage crunch has led a consortium of banks to propose a fund of up to $100 billion to buy distressed assets.

Copyright 2007 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.
10/23/07 07:12 EDT

[hernandezlossmit]

Countrywide has been pretty responsive about saving homes. I'm working on about a dozen mods with them now and have resolved dozens of more different cases with them through negotiating. I don't understand why they would deny you loss mitigation...?? Did you talk to a loss mitigation rep or was it a collector? Try calling their retention team @ (888)453-3102 if you haven't already.

[877YouKeep]

I too have had great response to Countrywide with workouts. We have been able to drop rates and extend terms. Have not had a step rate yet but have not presented with the opportunity. Have done SPFs instead.

[JoDee]

spfs? what are spfs?

[877YouKeep]

A special forbearance which can be 0 payments up to full modified payments for a period of up to 120 days (4 months). There are some useful techniques using SPFs that can really help.