Countrywide settlement to help fight foreclosures

Monday, Oct. 6, 2008 | 5:33 p.m.

Sun coverage

Real estate in crisis

Attorney General Catherine Cortez Masto said today that Nevada is one of several states that has reached an agreement with Countrywide Financial that will help almost 400,000 borrowers across the nation who are facing foreclosure.

Mortgage lender Countrywide Financial Corp. has agreed to provide loan modifications to up to 397,000 borrowers nationwide under the settlement.

The states involved in the settlement estimate that relief to borrowers could equal about $7 billion to $8 billion nationwide.

The tentative agreement was reached late Sunday by the states involved and Bank of America, which acquired Countrywide Financial on July 1.

"Our citizens are suffering from the mortgage foreclosure crisis," Cortez Masto said. "We lead the nation in foreclosures. My office has been working with Countrywide and the larger settlement states to bring some immediate relief for Nevada homeowners."

The details are still being drawn, Cortez Masto said.

The loan modification program includes the suspension of some foreclosures for eligible borrowers with subprime and adjustable rate loans; waiver of late feels of up to $2.2 million; $3 million in payments to borrowers who are 120 or more days delinquent or whose homes already have been foreclosed upon; and about $4.8 million in additional payments to borrowers who, in the future, will be unable to afford monthly payments under loan modifications and lose their homes to foreclosure.

Countrywide said the loan modification program will be ready by Dec. 1.

Countrywide subprime customers who want more information should call 1-800-669-6607. Information soon will be posted on Countrywide's Web site at www.countrywide.com.

The tentative settlement resolves allegations that Countywide used unfair and deceptive tactics in its loan origination and servicing activities and that borrowers were put in structurally unfair and unaffordable loans. Countrywide is the largest provider of subprime mortgages in the U.S.

The Bank of America/Countrywide settlement resolves investigations into Countrywide's lending practices in Arizona, Iowa, Nevada, Ohio, Texas and Washington. The settlement also resolves lawsuits against Countrywide initiated in Illinois, California and Florida.

Discussion: 7 comments so far…

By true_rebel_fan

10/6/08 at 6:58 p.m.

Suggest removal

LETS SEE.....

lose your butts in lawsuits,
OR,
do the right thing

the other lenders will follow shortly. remember they are the experts, and, we are the un-informed clients.
By tokaloshe

10/6/08 at 9:52 p.m.

Suggest removal

Still, a band-aid on a gaping wound, this is a
public relation maneuver. What is countrywide going to re-negotiate? payments? we are past that, you cannot put value back in a home, which is the primary cause of foreclosures now. delinquent payments are not the cause, delinquency is how you create a short-sale.
By Judy

10/7/08 at 9:15 a.m.

Suggest removal

I would imagine that if the mortgage companies would renegotiate the terms of the loan so that the monthly payments are affordable, most folks, even if upside down would chose to stay in their homes. Being upside doan and unable to make the monthly payment is drving foreclosures.
By redferret

10/7/08 at 9:47 a.m.

Suggest removal

Would banks rather get some money back a month, or would they rather have houses sitting around for no one in particular? Not to mention the cost of upkeep, and the unfortunate rise in home vandalism/theft. Those damn parasites and their all consuming drive for copper/whatever is/isn't bolted down in a home are ruining homes.
The smart move is to renegotiate, that or renovate the place and get into the renting business.
By azsk8fan

10/7/08 at 10:49 a.m.

Suggest removal

Anyone wanna take bets as to how much of this bail-out money will wind up in some fatcats wallet or their off-shore bank account?
By jfnance32

10/7/08 at 11 a.m.

Suggest removal

It was the Democrats that pushed for more and more and more and more and more sub-prime loans so that minorities can get into homes.

Now, we all will pay the price for that crazy social engineering.
By redferret

10/7/08 at 11:29 a.m.

Suggest removal

Yes, because it's all the poor's, minorities', and the dems fault. Nothing about the current administration or anything. Keep flailing. McSame the Third's polls will keep slipping. BTW how's North Carolina, Ohio, Florida, AND Missouri doing for you guys?

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