The New Mexico Attorney General’s office has come to an agreement with Countrywide Home Loans and Bank of America that it says will help many people avoid foreclosure and will stop the loss of their homes.
The exact modified loan terms available for New Mexico borrowers will vary according to their circumstances. The mortgage assistance provided may include an automatic freeze or reduction in interest rates, waiving fees, conversion to fixed-term loans, and even a reduction in principal owed. Generally borrowers will need to pay a lower mortgage payment going forward. The total first-year payments of interest, principal, taxes and insurance will be targeted under the mortgage loan modification program to equate to 34 percent of a borrower’s total income (or 25 percent of income for borrowers for whom insurance and taxes are not escrowed). Find additional Bank of America mortgage assistance programs.
As part of the settlement terms between Countrywide and New Mexico, Countrywide will make available monetary payments to qualified borrowers who have experienced a foreclosure sale. This will be targeted at those who were more than 120 days late or more delinquent soon after their loans were originated, with their first payment due starting in January 2004 through the end of December 2007. Dial 1-800-669-6607
The state of New Mexico has also initiated a foreclosure mediation program. This is another option for people who are behind on their mortgage, who need some form of professional assistance and guidance, or who are facing a foreclosure. Learn more on the mediation program and how this option can provide you with support and relief.
The federal government has certified several non-profits as HUD agencies in New Mexico. Homeowners can stop by or contact these locations for a wide variety of services. Learn more.
The state created an agency back in 1975 to address a wide variety of housing issues that New Mexico homeowners and renters may experience. The New Mexico Mortgage Finance Authority may be the leading non-profit organization that operates across the state. The organization can address all those common issues, including foreclosure, first time buyer, and rent problems that people experience. Read more on New Mexico government foreclosure and housing programs and resources.
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