Tuesday, October 23, 2007

Countrywide Plans To Attempt To Refinance $16 Billion In ARM's

Countrywide announced today that it would attempt to contact up to 82,000 borrowers who are either facing a rate reset on their Adjustable Rate Mortgage before the end of 2008, or have recently experienced a rate reset and are having difficulty staying current on their payments.

I've been reading many of the commentary on different websites recently and have seen an overwhelming mindset of "Why the heck is anybody helping these people.  The majority of them lied on their loan application in order to qualify for the loan anyway.  You reap what you sow!"  On some level I might agree with that.  I'm a big believer in Karma.  On the other hand, anything that can be done to help the struggling real estate market right itself would be welcomed as far as I'm concerned.  And from what I can see this is going to help.  Albeit this will help only a small percentage of the overall troubled homeowners, but any amount of help is help nonetheless.

Hopefully other lenders will follow suit and put together a plan to help it's most troubled borrowers avoid foreclosure. 

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-Steve Nicks

[tags] Countrywide Home Loans, Adjustable Rate Mortgages, Desert Ridge [/tags]