Bankruptcy

Countrywide Customers: Mortgage Help is on the Way for Many

By Jonathan

CNN.Money.com is reporting that Bank of America has announced a plan to cut mortgage payments on loans held by its Countrywide division.  The program targets holders of subprime adjustable rate mortgage (ARMs), subprime fixed rate loans and option ARMs, but prime and Alt-A borrowers, who did not document their income, will be eligible as well.

Countrywide is now owned by Bank of America (as of July, 2008) and the Countrywide/Bank of America plan is designed to settle complaints filed against Countrywide by several state Attorneys General over predatory lending practices.

This foreclosure prevention plan will start in December and will reduce mortgage payments for eligible homeowners to no more than 34% of the borrower's gross income.  Countrywide is now in the process of screening its files and will notify eligible borrowers.

Full post as published by The BK Blawg on October 12, 2008 (boomark / email).