If you are thinking of filing for bankruptcy get a free bankruptcy review, or file yourself with our bankruptcy forms for just $19.95. Thanks for visiting!

If you have a mortgage through Countrywide and are facing foreclosure, your luck may be changing. The New York Times is reporting that Countrywide is setting aside over $8 billion to help people who were given risky loans recover and hopefully avoid foreclosure altogether.

“The program will focus on borrowers who were placed in the riskiest loans, including adjustable-rate mortgages whose interest rates reset significantly several years after the loans were made. Pay-option mortgages, under which a borrower must pay only a small fraction of the interest and principal, thereby allowing the loan balance to increase, are also included in the modifications.

Borrowers whose first payment was due between Jan. 1, 2004, and Dec. 31, 2007, can participate. The loan balance must be at least 75 percent of the current value of the home, and the borrower must be able to afford the adjusted monthly payments.”

Hopefully this settlement will pave the way for other mortgage companies whose lax loan policies in the past few years have led to the record foreclosure rates that are happening across the country. If you are facing foreclosure and have a mortgage with Countrywide I highly suggest giving your loan officer a call to see how close help is.