Countrywide to Tighten Up Loan Modifications

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Homeowners hoping to get a loan modification with Countrywide may want to rethink their options. Countrywide Financial, best known for excessive lending practices that led to widespread defaults, now has so many terrible debts on its books that it may have to tighten up its loan modification service.

Home Loan Modification allows defaulting borrowers to work out new stipulations with Countrywide, so that they can avoid foreclosure and stay on track. Countrywide started offering the service through their Home Retention Department at the height of last year’s real estate bubble. But, due to the number of requests coming in, many cases were delayed and resulted in foreclosure. The company hit an all-time low in 2008 and was just bought out by the Bank of America.

In line with the change, the Loan Modification Department of the Law Offices of Marc R. Tow is also taking measures to protect its clients. The firm, one of the leading loan modification services in the country, will only negotiate modifications with Countrywide for clients with viable cases and those who are in serious financial distress.

Changes are also expected in national Loan Modification policies. While loan modification is still open to borrowers not in default, new laws may soon limit the service only to those in bankruptcy or serious delinquency. This will allocate lenders and loan modification companies to focus their concentration to clients who are most in need.

The firm will continue to help clients with loans serviced by other companies. Besides loan modification, the Law Offices of Marc R. Tow also offers help with loss lessening alternatives such as fleeting sales.