Countrywide program to help 2000 facing foreclosure in Idaho

Posted by Jace Stolfo on Wednesday, December 31st, 2008 at 1:41pm.

Countrywide is instituting a national program to help some 400,000 customers nationwide.  The program is designed to help certain sub-prime and adjustable rate borrowers avoid foreclosure.  About $700,000 will be directed to Idaho.

The program came out after some states, not including Idaho, sued the company.  Under a settlement agreement, Countrywide will:

  • Waive approximately $243,000 in prepayment penalties.
  • Suspend foreclosures pending a determination of the borrower's ability to afford the loan modification.
  • Reduce interest payments and principal balances.
  • Provide approximately $179,000 in relocation assistance payments to certain other borrowers to help meet the cost of transitioning out of home ownership.
  • Waive about $275,000 in late fees.
  • Some of the criteria for eligibility is the property must be owner-occupied property, the borrower's loan balance must be 75 percent or more of the current home value, and the borrower must be able to afford the adjusted monthly payments under the terms of a modification.

Borrowers should contact Countrywide Financial at (800) 669-6607 to determine eligibility.

Information source: Idaho Statesman

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