"As part of the settlement, Bank of America is providing a loan-modification program to help homeowners who were in default or likely to be in default on their mortgages. During this time, foreclosure will be suspended for long enough to determine whether modification can be accomplished. The modification program will allow eligible borrowers to modify the terms of their loans to make payments more affordable."
Abbott says Bank of America is setting aside $150 million to settle with homeowners who have already been foreclosed-on. He says it makes sense to try to resolve some of the delinquent mortgages. "As our nation's economic turmoil demonstrates, our economy is only as sturdy as our nation's home values. Foreclosure doesn't help homeowners and it doesn't mortgage companies. Helping eligible Texans pay their mortgages and stay in their homes will help our great state weather this financial storm."
Countrywide had been under investigation for unfair lending practices. Abbott says the agreement could affect 30-thousand Texans.
Texas Attorney General Greg Abbott says Bank of America, which recently bought Countrywide, has agreed to implement programs that could keep some people in their homes.