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Home foreclosures are the end result when property ownerss fail to pay their mortgage for usually 3 months. Once the bank makes the decision to take action, they file a public default notice. If the mortgage is not paid and the property owners does not sell the house, then the lender has the option to take ownership of the home. When banks choose this option they usually do it to sell the home on the open market. Real Estate Owned (REO) properties are houses that the bank has taken back. Countrywide home mortgage foreclosures have increased over the previous six months. Fortunately Countrywide is proactively taking a position in aiding current clients pay off their loans while encouraging new patrons to get their mortgages through them.

Countrywide is offering non-countrywide patrons a 5.75% rate on a 30 year refinance mortgage while existing countrywide patrons receive a rate based on their past payment history. Countrywide home mortgage foreclosures have been on the increase as existing patrons are not able to make their payments. As previously stated, Countrywide is developing alternatives to help their patrons pay off their home loans. So what are these methods?

One alternative that Countrywide might offer you is reducing your home mortgage interest rate. Interest rates make an enormous difference when it comes to making a home mortgage 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 one year of paying your monthly payment of $805.23 on time. So if Countrywide lowered your interest rate only 1% then you will have paid $5951.92 after one year of paying your monthly payments on time. That is a difference of $1,497.82 a year. As you can see, interest rates make a an enormous difference on your payoff amount.

Another method that Countrywide is using to aid patrons 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. You are finding it difficult to make these payments so you look into refinancing your mortgage to a thirty 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. That amount in today’s economy would pay for your gas to travel to work.

Countrywide home mortgage foreclosures have been on the rise over the last six months, it is encouraging that they are creating ways to assist their patrons. If you are having problems making your payments you should consider refinancing your current home mortgage.

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Tags: Financial, Money & Loans //