Oct. 6, 2008 - 400,000 CountryWide mortgage holders to get help

B of A to rewite some loans

Reported earlier today, Bank of America, who acquired Countrywide, agreed to pay more than $8 billion to modify home loans, allowing some to forgo foreclosure and keep their homes.  This is the results of law suits filed in California and Illinois.  Other states joining the settlement are Arizona, Connecticut, Florida, Iowa, Michigan, North Carolina, Ohio, Texas and Washington.  Charges were made that predatory lending practices were employed. 

The mortgage aid includes revising customers' payments so they don't exceed 34 percent of income. Other options include reducing interest rates and adjusting principal so that borrowers don't wind up actually losing equity under some payment plans.  Countrywide settled with the states without admitting any wrongdoing.

Under the agreement's terms, Countrywide will reduce principal balances in some cases and cut interest rates in others. Rates could decline to 2.5 percent, depending upon a borrower's ability to pay, and remain at that level for five years. Then the rate would adjust to prevailing interest rates charged by Fannie Mae on its fixed-rate mortgages.

Hopefully, this becomes a model in New Jersey and across the country to help stem the rise in home foreclosures and provides relief to the current housing crisis.

"This settlement will help homeowners stay in their homes, which ultimately helps investors and also helps communities," said Illinois Attorney General Lisa Madigan, a Chicago Democrat.

More at : MSNBC

.

Oct. 6, 2008 - RE: 400,000 CountryWide mortgage holders to get help

Its nice to see banks finally starting to work with homeowners.  The banks we have been dealing with on foreclosures have not been very flexible.

Ki

Austin Texas Real Estate | North Loop