Countrywide Law Suit, Settlement with Attorney general, loan modification

FAQs - Attorney General's Office Lawsuit Against Countrywide - Consumers - California Dept. of Justice - Office of the Attorney General

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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.
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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.
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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.
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When will the modifications start?

On or before December 1, 2008, Countrywide will begin contacting borrowers who may be eligible for modifications.
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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.
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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.
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What if I am in foreclosure already?

For borrowers who may be eligible for loan modifications, Countrywide is suspending the foreclosure process, and not starting new foreclosures. Even though modifications might not start until December 1, 2008, Countrywide is suspending these foreclosures for now.
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What loan terms will borrowers receive if they obtain a modification?

Information from an loan modification by an attorney