Bank Settles Countrywide Mortgage Lawsuit

Bank Of America Agrees To Modify Loans Of Homeowners In 11 States Facing Loss Of House

(AP)  Facing a lawsuit over deceptive mortgage practices, a Bank of America Corp. subsidiary has agreed to modify tens of thousands of loans to keep people in 11 states from losing their homes, the Illinois attorney general's office said Sunday.

Borrowers stuck with Countrywide Financial mortgages that they can't afford could see their interest rates reduced or have the loan principal cut. Some might qualify for having to pay nothing but interest for a decade. Even people who can't afford to keep their homes with such changes will be able to get help moving to a new home.

"This is going to provide a tremendous amount of relief," said Illinois Attorney General Lisa Madigan.

Her office and officials from California negotiated the settlement. Nine other states have also joined the settlement, and other states could sign on, said Deborah Hagan, chief of Madigan's Consumer Protection Division.

If all 50 states were to join, the settlement could provide $8.7 billion in relief to 400,000 borrowers, Hagan said.

In California alone, the settlement will offer $3.5 billion in relief. For Illinois, that would translate to $190 million. The total for the 11 states was not immediately available.

The settlement applies to people who obtained their mortgages through Countrywide Financial Corp., which Charlotte, N.C.-based Bank of America purchased in June, at the same time Illinois and California sued the company.

"Countrywide's lending practices turned the American dream into a nightmare for tens of thousands of families by putting them into loans they couldn't understand and ultimately couldn't afford," California Attorney General Jerry Brown Jr. said in a statement Sunday.

The other states joining the settlement are Arizona, Connecticut, Florida, Iowa, Michigan, North Carolina, Ohio, Texas and Washington.

Bank of America will launch the new mortgage aid program in December, said Barbara Desoer, president of Bank of America's mortgage, home equity and insurance services. In a statement, she called it "a comprehensive program that provides more solutions than ever before to assist troubled borrowers and put them back on the path to sustained home ownership."

The mortgage aid includes revising customers' payments so they don't exceed 34 percent of income. Other options include reducing interest rates and adjusting principal so that borrowers don't wind up actually losing equity under some payment plans.

Countrywide will not charge loan modification fees and will waive prepayment penalties.

Madigan said she hopes the settlement could serve as a model for steps that other lenders could take to make up for misleading mortgage practices. She stressed that the agreement involves no tax money but will help people keep their homes and keep money flowing to lenders

"This settlement will help homeowners stay in their homes, which ultimately helps investors and also helps communities," said Madigan, a Chicago Democrat.

[L_phillips]

[e-mail] Same here. Countrywide gave us 2 seperate mortgages at the same time. They stuck us in an adjustable loan that we could not afford. App. 2 months after we assumed the loans CW sold our smaller loan to HSBC home loans. In Sept.2008 our large loan went up drasticly. We attempted 3 times to refinance our loans with CW and they denied us all three times. It cost us about $1000 for appraisals. In October of 2008 I lost my job due to state cut backs and my husbands miles got cut as a truck driver. 3 months ago we had no choice but to file bankruptcy and surrender our home. We will be forced out of our home in a few months. In Sept.2009 we supposibly qualified for the remodification loan through CW. After signing some forms, that was suppose to get our new loan approved CW representatives stated that our home was already put into foreclosure. I contacted one of the supervisors at CW and she told me that she did not understand what was going on but, she promised me that she would look into it for me and let me know within 24 hours. I never heard from her. I have documented every time that I have contacted CW and whom I spoke to. I was continously given the run around by everyone that I spoke to. I finally gave up. No one would help us. I feel CW took advantage of us and they need to be held accountable for their actions. If someone can help us save our home please e-mail me. Thanks LP

[JAMESYANG1]

Yes, same here. Countrywide also give me a very bad loan which I can not afford it. I have been paying for two years and my bank account was empty. I try to work with countrywide to see if they can get my mortgage down. They told me if I can not long pay for it then just give it up for them. I have no choice but to gave it up and file bankrupcy. It's a heart breaking. I would like to know if anyone of you know how do I joint this lawsuit. Please let me know because I have lose my life time saving. I feel like someone just point a gun to my head and take my money away.

[2ManyPups]

We're in the process of putting together a mass tort suite against Countrywide and the Bank of New York for what we believe was real estate fraud. If you're in Northern California and believe you have been defrauded, see our website at infocaref.com, e-mail us with information about your case, and we'll try to help you get in contact with the authorities and our attorney (if your case qualifies). We're hoping to have the suits filed in Federal Court within another month.

[josierippey]

Hi! its me again from the earlier comment.
My e-mail is [e-mail] if anyone wants to write or can write on this comment board on how we can get a hold of the atty or an atty that is willing to help us fight against Countrywide before we loss our homes.
Anyone know an atty that can help us or can reach the atty that originally handled the first lawsuit.? I am getting sick of the posibility of lossing my home.

[josierippey]

I also am a victim of Countrywide aka Bank of America. I applied 3-4-09 to get a modification for affordability program that i am eligible for. They been stringing me around one day Yes, then No, rejected my Jan pymt after being told to pay at bank of america in person.To make matters worse they have not returned my money making me more delinquent telling me its bank at the bank, then mail..still no money back. Now they wouldn't take anymore pymts just to get me into foreclose. I can't loss my home i am hoping others will look into starting a class action suit again against CW. They will not help people they are just trying to take peoples homes away. I sent a complaint to fl state atty office, congressman and HUD and Fannie Mae has CW mortages. Please all of us lets do something FAST.

[khabeer01]

I had my mortgage with Countrywide since 2006 after I refinanced from another bank. I have never been late and have always made my payment online. On April 30 I paid my mortgage for this month (May) through Countrywide Website and at the bottom of my receipt it says "Bank of America". I did not receive anything from CW about my mortgage transitioning to another bank....I just don't know what to think because they were in the process of letting me refinance out of my interest only to a lower rate. They even have me paid for an appraisal. Does anyone knows what this means?

[abusedbyCOUNTRYWIDE]

Countrywide refuses to modify my mothers loan. They stole $10,000 from her in false forced placed insurance that they paid to themselves Balboa Insurance. When she refused to pay the fake insurance charges they began foreclosure. They have told her for over a year that she qualitied for a modification. She was even told in December that her rate would be 4.5. Now they say that the investor Deutsche Bank ordered the foreclosure. My mother has lost her job of 20 years with the United States Postal Service. They fired her for being sick. I found my mother in a coma and she was diagnosed with encefalitis. She lives on very little from diability payment through Social Security. She makes enough to qualify for a loan modification but Countrywide refuses to grant her one.
Does anyone know of a classaction in the state of Florida, they are NOT getting my mothers home! She got her home loan through her local bank, the bank sold it to Countrywide. She didn't choose Countrywide.
Countrywide sends back the payments I send them.

[kaykay888]

We are also in the middle of a nightmare with Countrywide. I was told to NOT PAY for 3 months while processed a program that involved Fannie Mae. I did 3 way calls, left messages for supervisors and NEVER ONCE received a return call. I started paying again, my money was declined and SENT BACK TO ME, and now I have received foreclosure papers. I have called and they refuse to take any responsibility for any of it, and in the meantime I receive a letter from them stating that one of their employees stole all my personal information off the mortgage application. I have cried until I feel sure I don't have a tear left. This is a horrible mess.

[leeandhenry]

Has anyone checked into Homecomings Financial? I am in the hurricane Katrina area and my home had 7.5 ft. of water in it. Purchased Thurs. gone Mon. and my interest rate went from 5 to 11% and I got 13,000 from State Farm to rebuild.... I had to pay on my Mortgage without gaps or they told me they would repo my home...there are alot of people here in Miss. like me...wouldn''t this be considered predatory? I guess we have been forgotten. My atty. is helping me in my damages from State Farm, but doesn''t know what to do for my mortgage co. Now I have a SBA loan from rebuilding my home and a high mortgage payment and can''t afford both...sorry SBA
Needing Help Mississippi....

[clmbsgary]

Hi from Ohio,Does anyone no how to join the lawsuite against Countrywide?We were scamed by them also and we dont want to lose our home.Any info on this would be a great help.Thank You and god luck to all that are going through this mess