Mortgage Assistance from Countrywide in Michigan

Almost $10 million will be provided to homeowners in Michigan that is the result of a state settlement with mortgage lender Countrywide Financial Corp. and Bank of America. Assistance will go to about 3,700 Michigan homeowners who lost their homes to foreclosure, according to Michigan Attorney General Mike Cox.

Cox continued by saying that he and six other state attorneys general negotiated settlements with Countrywide and are forcing Countrywide to provide this mortgage aid to struggling homeowners.

In total, 3,697 families who had sub-prime and pay-option adjustable rate mortgages between Jan. 1, 2004 and Dec. 31, 2008 and later lost their home each will receive $1,800. In total, this $6.7 million is assistance makes up two-thirds of the settlement agreed to with Countrywide.

In addition to those funds, the settlement also includes $1.2 million to be paid to the United Way of Southeastern Michigan to help pay for its family crisis telephone line. Also, grants totaling $250,000 each for the city of Detroit and nonprofit Focus: HOPE to help neighborhoods with distressed and abandoned homes in their neighborhood. More housing-related funds and grants for charities and communities are expected to be announced soon for Michigan families, with the goal to sop foreclosures.

Last year, Countrywide agreed to pay an additional $130 million to re negotiate about 10,000 loans in Michigan, which is in addition to the $9.9 million in grant money and payments detailed Tuesday.