Possible Mortgage Relief for Virginians
January 13th, 2009
Under the settlement, Countrywide and its affiliates agree to modify loans for eligible borrowers so they are better able to keep their homes. Borrowers eligible for loan modifications are those who received either a qualifying sub-prime adjustable rate mortgage or a Pay Option adjustable rate mortgage prior to December 31, 2007 and who meet other specific requirements.
Depending on the type of loan, modifications may include an automatic freeze or reduction in interest rates conversion to fixed-rate loans, or refinancing or reduction of the principal owed. Under the modifications, first-year payments of principal, interest, taxes and insurance will be targeted to equal 34 percent of the borrower’s income.
