Countrywide settles — will cut rates for “troubled homeowners”

From today’s Virginian-Pilot:A picture of someone looking troubled.

Countrywide Financial Corp. has agreed to cut interest rates and provide relief to more than 8,900  troubled Virginia homeowners to help prevent them from going into foreclosure, the state attorney general’s office announced Monday.

Virginia joined a nationwide settlement between state attorneys general and the home loan giant, which was acquired in July by Bank of America. Designed to help those most at risk of defaulting on their mortgages, the settlement will provide as much as $212.8 million of relief in Virginia, mostly in the form of loan modifications.

(“What settlement?” you ask.)

Some of those states had sued Countrywide for deceptive business practices, alleging the lender had misled consumers on the escalating nature of the loans. The institution agreed to provide $8.4 billion in loan modifications to as many as 397,000 homeowners across the country.

Just go and read the thing.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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4 Responses to Countrywide settles — will cut rates for “troubled homeowners”

  1. I wonder how many of these loan modifications are going to come back to haunt us in a few years time. I personally do not think it is fair that my neighbor potentially gets a loan modification with loan balance reduced, and because I was prudent and did not borrow more than I should I get to pay the whole amount, as well as some of the neighbors through my taxes.

  2. Derek Weeks says:

    This whole foreslosure mess could have been completely avoided if the large financial institutions would have taken this approach from the start!

    Although I dont agree with some people getting rewarded for taking on a loan that was not feasible for them and the the responsible home owners getting nothing, it is important for this to happen to help get the housing market back on track.

    Great post, great read!

  3. usually homeowners gets a headache when theres loans runs towards them because it had large interest now , before they will fully paid the amount it will become bigger and bigger which cause this homeowners a hard time

  4. In my opinion this whole thing could have been avoided if people did not live beyond their means. This is a major problem in America. This is something America is going to need to learn before anything will get better.

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