Mortage relief for Countrywide customers.

by Paul Staley
Tuesday, 04 November 2008 18:22

According to CCN.Money.com: Bank of America will be contacting customers with 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 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.

This workout on these mortgages will be a more cost effective way to stabilize the ever increasing foreclose problem than actually foreclosing.