Homeowners in Texas who have been or are currently struggling with mortgage loans from Countrywide Financial, now Bank of America, might qualify for better mortgage loan terms or financial settlements under a recently announced restitution program.
The program includes almost $8 million for Texas Countrywide customers who have either lost their homes to foreclosure or who have fallen far behind on their mortgage payments as of Oct. 6, 2008. The funds have started to be distributed. More.
In addition to that aid, another $3 million is available to an estimated 1,500 Countrywide/Bank of America customers who are either close to defaulting on their subprime loans, or if they have already defaulted. These customer could receive up to $2,000 each if they “voluntarily and appropriately” turn over their residences, thus avoiding foreclosure.
These payments are part of a lawsuit and settlement with the Texas Attorney General’s Office over claims that Countrywide strongly encouraged homeowners to accept mortgages that they could not afford, and that Countrywide failed to fully disclose risky loan terms and that they also wrote mortgages for unqualified borrowers.
This assistance is in addition to the $350 million that was announced last October. In October, Texas Attorney General Greg Abbott announced that particular agreement with Countrywide. Distressed Texas homeowners would receive $350 million worth of benefits from Countrywide for deceptive mortgages.
Possible help measures from that settlement include lower interest rates, reduced principle loan amounts, and conversion and modification of adjustable rate mortgages to fixed term loans. Mortgages eligible for modification include hybrid adjustable rates, subprime loans, and pay-option ARMs. Dial 1-866-411-6987 to get more information on the Texas and Countrywide mortgage settlement.
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