Trouble with a loan modification?

Are you trying to get a loan modification from Countrywide or Bank of America? If so, you may be eligible for a loan modification program obtained by the Arizona Attorney General (and 13 other states). Check out the following information contained on the Arizona Attorney General's website: www.azag.gov


Countrywide Customers


Attorney General Terry Goddard and Countrywide Financial Corporation entered into a Consent Judgment that was filed in the Maricopa Superior Court on March 13, 2009.

Countrywide customers looking for information about the loan modification program can call Countrywide, toll-free, at 800.669.6607 or go to Countrywide’s Web site, www.countrywide.com
Countrywide Consent Judgment
(Click here for a PDF of the Consent Judgment)

Countrywide Consent Judgment/Settlement FAQ's
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Which borrowers may be eligible for loan modifications?

The settlement provides for loan modifications for eligible borrowers who are 60 days or more delinquent, or become 60 days delinquent, on subprime or pay option loans that they obtained from Countrywide or from a broker working with Countrywide.

Borrowers with these loans may be eligible for modification if the first payment on their loan was due between January 1, 2004 and December 31, 2007, they live in the property that serves as security for the mortgage, they owe 75% or more of the current value of their home, and they can afford the new, lower payment under the modification.

I have a Subprime or Pay Option Loan. Does that mean I am eligible for a modification under the settlement?

The Attorney General’s Office cannot say whether or not a particular borrower will or will not get a modification. That will depend on the borrower’s individual circumstances, including whether the borrower can afford payments on the modified loan.

What if I am delinquent on my mortgage but don’t have a Subprime or Pay Option loan?

Countrywide is pledging to evaluate all other borrowers with payment difficulties for possible modifications on a case-by-case basis. If you are having difficulties making payments on your loan but do not have a subprime or pay option loan, you should call Countrywide at (800) 669-6607.

When will the modifications start?

On or before December 1, 2008, Countrywide will begin contacting borrowers who may be eligible for modifications.

Can I contact Countrywide to ask for a modification?

Under the settlement, Countrywide will contact all borrowers who may be eligible for a modification. However, you can also call Countrywide toll-free at (800) 669-6607 to ask for a modification. If you do call Countrywide, please write down the full name of the person you talk to, and the date and time of your call.

I think I should get a modification. Do I have to continue making payments on my Countrywide loan until then?

The settlement does not by itself change your loan payment or allow you to stop making payments. Borrowers who may be considered for a modification will be contacted by Countrywide and also can contact Countrywide at (800)669-6607 with specific questions about their loan.

You should not stop making payments on your loan just because you think you might qualify for a modification. If you have the ability to pay but stop making your payments, you will likely damage your credit, and may significantly harm your chances of actually receiving a modification.

What loan terms will borrowers receive if they obtain a modification?

The exact terms of a modification will vary from borrower to borrower, depending on the borrower’s circumstances (such as loan amount, the borrower’s income, and the current value of the borrower’s home). Generally, borrowers will be considered for possible interest rate reductions or conversion to an interest-only loan for five or ten years.

Borrowers with pay option loans who own only one home might also be eligible for principal reductions if they owe more than 95% of the current value of their home.

Will I have to pay a fee to Countrywide to get a modification?

No. Borrowers eligible to get a streamlined modification under the settlement will not have to pay any fees.

If anyone asks you to pay a fee in order to request or receive a loan modification on your Countrywide loan, please report this immediately to the Attorney General's office by completing our online complaint form athttp://www.azag.gov/consumer/OnlineInstructionsEng.html

What about late fees and prepayment penalties?

The settlement requires Countrywide to waive late fees for borrowers with subprime or pay option loans who receive a modification, as well as prepayment penalties for borrowers with subprime or pay option loans who receive a modification or are able to refinance or pay off their loans.

What if I am current on my loan now but think I will not be able to make my payments in the future?

The agreement requires Countrywide to make loan modifications for eligible borrowers through June 30, 2012. Also, if you think you will have any difficulties making your payments in the future, you are encouraged to contact Countrywide now at (800) 669-6607.

Can I call a local Countrywide branch or my loan broker to ask for a modification?

No. At least at this time, you should not call a local branch or broker. Instead, contact Countrywide at (800)669-6607 to ask about the modification under the settlement or to ask any other questions you may have about the settlement.

Can we trust Countrywide to make all these loan modifications?

The Attorney General's office will monitor Countrywide throughout this process. The settlement requires Countrywide to make regular reports to the Attorney General’s Office regarding which borrowers do and do not get a modification, and the reasons why.

Can I still sue Countrywide if I get a loan modification under the settlement?

Yes. Borrowers will not have to release any legal claims they may have against Countrywide in order to receive a modification of their loan.

What if I lose my house to foreclosure in the future?

The settlement also requires Countrywide to make relocation assistance payments to borrowers who lose their homes to foreclosure in the future. The amount of those payments may vary from borrower to borrower, depending on individual circumstances such as the size of the household.

Can you give me advice on whether I have other legal claims against Countrywide?

The Attorney General’s Office is not able to give you legal or other advice on this matter. If you would like advice, please consult a private attorney of your choosing, or a legal aid attorney if you qualify. The State Bar Association also has information about how to obtain a referral through its Lawyers Helping Homeowners program. Information can be found at its website,http://www.azlawhelp.org

Can I still file a complaint with the Attorney General's Office about Countrywide?

Yes. If you wish to file a complaint about your loan, or think you were denied a loan modification when you should have received one, please contact us. You can send a letter with copies of any supporting documentation to the Office of the Attorney General, Consumer Information and Complaints, 1275 W. Washington, Phoenix, AZ 85007-2926 or you can file a complaint on-line by clicking onhttp://www.azag.gov/consumer/OnlineInstructionsEng.html

Is this Consent Judgment part of the bailout passed by Congress?

No. It is a separate settlement between Countrywide and the Arizona Attorney General.

Does the settlement include non-Arizona borrowers?

Countrywide is adopting the mortgage modification plan nationwide. However, the monetary relief for borrowers who have already been foreclosed is only available in states that have formally agreed to participate in the settlement.

Where can I obtain more information about the Attorney General's Consent Judgment with Countrywide?