On February 18, 2009, Obama signed the American Recovery and Reinvestment Act into law. It was designed as an answer for homeowners and mortgage lenders to reduce the rate of foreclosures. Countrywide Loan Modification has made it possible for over 400,000 ARM mortgage holders to modify their loans. Countrywide Loan Modification is an excellent program as long as you know the protocol.

Trying to modify your loan can make your brain feel like it is going to explode. Keep the following five tips in mind when you modify your loan, so the process is smooth and seamless.

1.Write a hardship letter. Just because you lost equity in the housing turn is not a good enough reason. Have you experienced reduced wages or unemployment? Did you go through a divorce/separation? Medical expenses, death in a family, and job transfers are also legitimate reasons. You must convince Countrywide Loan Modification that you are a good candidate.

2.Provide proof. The reasons above need papers. For example, provide medical bills, divorce papers, a letter from your employer, etc.

3.Determine your Target Mortgage Payment. Countrywide wants to know you won't default again. Find a targeted payment based on your budget that you can maintain. A combination of ways will lower the principal balance, including a longer loan term, a lower balance on principal, and an interest rate reduction. You must also meet debt-to-income ratio requirements.

4.Submit accurate financial statements. Get your finances on paper. This could be IRAs, bank accounts, taxes, etc. Any assets or debt you have need to be documented.

5.Submit a complete Countrywide Modification Package. Missing documents and information will delay the process dramatically

The Countrywide Loan Modification can be easy as long as you do what is expected of you on the front end. Pay attention to detail. It's a good idea to get a consultant to help you in the process.

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