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Home foreclosures are the end result when owners default on their mortgage for an extended amount of time. Once the bank makes the decision to take action, they file a public default notice. If the defaulted fees are not paid and the owners can not sell the house, then the mortgage holder has the right to take back the home. When mortgage holders choose this option they usually do it to resell the home on the open market. Real Estate Owned (REO) properties are properties that the bank has repossessed. Countrywide home home loan foreclosures have been on the rise over the previous six months. Fortunately Countrywide is actively taking a position in aiding present patrons pay off their home loans while encouraging new patrons to get their home loans through them.

Countrywide is offering non-countrywide clients a 5.75% rate on a 30 year refinance home loan while existing countrywide clients receive a rate based on their past payment history. Countrywide home home loan foreclosures have been on the rise as existing clients aren't able to meet their payments. As previously mentioned, Countrywide is developing several options to help their clients pay off their home loans. What are these methods?

One alternative that Countrywide could offer you is lowering your home home loan interest rate. Interest rates make an enormous difference when it comes to making a home loan 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 one 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 one year of paying your monthly payments on time. That is a difference of $1,497.82 a year. The bottom line, interest rates make a an enormous difference on your payoff amount.

Another method that Countrywide is using to aid clients pay their home loans off is through refinancing their home loan. Let's say you are present have a 15 year mortgage at $150,000 with a 7% interest rate. You are finding it hard to make these payments so you look into refinancing your mortgage to a thirty year note 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. This in today's economy would pay for your gas to travel to work.

Countrywide home home loan foreclosures have been on the rise over the last 6 months, it is refreshing that they are finding ways to help their clients. If you are having problems making your payments you should look into refinancing your current home loan.