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MCKINNEY: AG’s office reaches agreement with Countrywide
AGREEMENT: New agreement with financial corporation could give sub-prime mortgage holders more time to pay their loans before they go belly up.
By Danny Gallagher, McKinney Courier-Gazette
A new agreement between Countrywide Financial Corp. and the Texas Attorney General’s office could give sub-prime mortgage holders more time to meet their bills.
The news could mean good news to struggling sub-prime mortgage holders who are in danger of defaulting on their loans due to rising payments, the AG’s office said.
“Texans who are in default or likely to default on sub-prime mortgages issued by Countrywide could be eligible to participate in an extensive loan modification program,” the statement read. “Through this program, eligible borrowers will be able to modify the terms of their loans to make monthly payments more affordable and allow more borrowers to stay in their homes.”
Countrywide agreed to “freeze” or reduce interest rates, extending and converting loan terms to fixed ones or agree to an overall principal reduction.
“Eligible borrowers who participate will not be charged late fees, loan modification fees, foreclosure fees, or pre-payment penalties,” the statement read. “Bank of America estimates that up to 30,000 Texas homeowners will qualify for the loan modification program.”
Bank of America also agreed to spend approximately $150 million to save homeowners from defaulting on their loans and Countrywide another $70 million on homeowners unable to keep their homes in addition to the loan modification program.
Texas Attorney General Greg Abbott applauded both sides for reaching an agreement during times of economic and financial turmoil.
“Today’s agreement will help keep struggling homeowners out of foreclosure and in their homes,” Attorney General Abbott said. “Under the loan modification program negotiated by the states, Texas families can benefit from frozen or reduced interest rates, loan term extensions and conversions to fixed rate mortgages. As a result, this agreement not only assists homeowners, but also helps shore up communities and markets that have been affected by the residential mortgage lending crisis.”
Texans who believe they may be eligible for the program should visit countrywide.com or call (800) 669-0102.
Contact Danny Gallagher at dgallagher@acnpapers.com.
The following are comments from the readers.
In no way do they represent the view of Starlocalnews.com
In no way do they represent the view of Starlocalnews.com
Lockard wrote on Oct 6, 2008 8:34 PM:
" How do you apply and see if you qualify for this settlement? "
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