Home foreclosures are the end result when property owners fail to pay their mortgage for several months. Once the bank decides to act, 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 option to take back the home. When mortgage holders decide on this option they usually do it to resell the home on the open market. Real Estate Owned (REO) properties are homes that the bank has foreclosed on. Countrywide home mortgage foreclosures have been on the rise over the previous six months. Fortunately Countrywide is actively taking a position in helping current customers pay off their loans while encouraging new customers to get 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 are not able to meet their payments. As mentioned, Countrywide is developing other methods to assist their customers pay off their home loans. So what are these methods?

One option that Countrywide may offer you is lowering your home mortgage interest rate. Interest rates make a vast difference when it comes to paying 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 1 year of paying your monthly payment of $805.23 . So if Countrywide lowered your interest rate only 1% then you will have paid $5951.92 after 1 year of paying your monthly payments . That is a difference of $1,497.82 a year. The bottom line, interest rates make a a vast difference on your payoff amount.

Another method that Countrywide is using to assist customers pay their home loans off is through refinancing their home loan. Let's say you currently have a 15 year mortgage at $150,000 with a 7% interest rate. If you are finding it difficult to make these payments so you look into refinancing your mortgage to a 30 year note instead of fifteen. 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 savings in today's economy would pay for your gas to travel to work.

Countrywide home mortgage foreclosures have been on the rise over the last 6 months, it is refreshing that they are creating ways to relieve their customers. If you are having problems making your payments you should consider refinancing your current home loan.