Home foreclosures are the end result when property owners fail to pay their mortgage for several months. When the bank makes the decision to start the process, they file a public default notice. If the mortgage is not paid and the property owners can not sell the house, then the bank has the right to take ownership of the home. When mortgage holders choose this option they usually do it to sell the home on the open market. Real Estate Owned (REO) properties are homes that the bank has foreclosed on. Countrywide home mortgage foreclosures have increased over the last six months. Fortunately Countrywide is actively taking a position in assisting current clients pay off their loans while encouraging new clients to obtain their loans with them.

Countrywide is offering non-countrywide customers a 5.75% rate on a 30 year refinance mortgage while existing countrywide customers receive a rate based on their past payment history. Countrywide home mortgage foreclosures have been on the increase as existing customers aren't able to make their payments. As I mentioned before, Countrywide is developing alternatives to help their customers pay off their home home loans. What are these methods?

One option that Countrywide could offer you is reducing your home mortgage interest rate. Interest rates make a vast difference when it comes to paying a home mortgage payment. For example, if you purchased a home for $150,000 at a 5% interest rate then you will have paid $7,449.74 after 1 year of paying your monthly payment of $805.23 on time. So if Countrywide lowered your interest rate only 1% then you will have paid $5951.92 after 1 year of paying your monthly payments on time. That is a difference of $1,497.82 a year. As you can see, interest rates make a a vast difference on your payoff amount.

Another method that Countrywide is using to aid customers pay their home home loans off is through refinancing their home mortgage. Let's say you are present have a 15 year mortgage at $150,000 with a 7% interest rate. You are finding it difficult to make these payments so you look into refinancing your mortgage to a thirty year loan instead of 15 years. With the mortgage rate remaining $150,000 at 7% interest rate for thirty years, your payment would be reduced from $1,348 to $998 which is a difference of $350 a month. That amount in today's cost of living would pay for your gas to commute to work.

Countrywide home mortgage foreclosures have been on the rise over the last six months, it is refreshing that they are finding ways to aid their customers. If you are having problems making your payments you should look into refinancing your current home mortgage.