How to Negotiate a Foreclosure with Countrywide
A foreclosure occurs when a homeowner has been behind on his or her mortgage and all attempts by the bank to get the homeowner to bring the loan current have failed. The exact process governing foreclosure is dictated by state law. However, in most cases foreclosure proceedings begin after the homeowner has been behind on her mortgage for at least three months. If you have a Countrywide mortgage and you find yourself in this situation, you may be able to negotiate a resolution that is favorable to both you and Countrywide. Countrywide is now owned by Bank of America.
Other People Are Reading
Instructions
-
-
1
Contact Countrywide and explain your situation. This is the first thing you must do, and delaying will only make the situation worse. The bank would rather hear from you sooner than later.
-
2
Decide on what type of resolution you seek. Countrywide offers loan modification, short sale or a deed in lieu of foreclosure. In a loan modification, the terms of your mortgage are revised to make it more affordable. This could involve reducing your interest rate and/or extending the life of your loan. In a short sale, you find a buyer who buys the property for less than what is owed, as long as the offer is acceptable to Countrywide. In a deed in lieu of foreclosure, you walk away from the house and the bank accepts the house back in place of what is owed.
-
-
3
Fill out the homeowners help application packet from the website and turn it in with the required documentation. You will need documents such as your W-2s or tax returns, your pay stubs and current bank statements. Be as truthful as you can in explaining your financial situation.
-
4
Follow up continually until the situation is resolved. The loss mitigation department is swamped with applications, and it will take the staff some time to get to each file. Following up at least once a week will ensure that your case does not fall through the cracks.
-
5
Evaluate your financial situation and make any necessary changes. Whatever may have caused you to fall into a situation of being behind on your payments, one thing is clear: You are making too little or spending too much. So it is time to take a critical look at your finances and make an effort to live within your means.
-
1
