Homes

Countrywide Deal Brings $1 Billion Relief For Fla.

TALLAHASSEE (CBS4) ― Florida homeowners could get up to $1 billion in breaks from high mortgage costs under a multi-state deal announced Monday afternoon with Countrywide, one of the nation's largest mortgage companies and now part of Bank of America. Nationwide, homeowners could get more than $8 billion in relief.

The deal settles complaints by attorneys general in a number of states, including Florida, that Countrywide engaged in abusive lending practices. As many as 57 thousand Florida residents could see some help under the settlement, including interest rate breaks, a reduction in the amount they owe, and even cash payments to some people who lost their homes.

Florida Attorney General Bill McCullom sued Countrywide in June, just before the company was purchased by Bank of America, and the deal also settles similar lawsuits in 7 other states. In California, homeowners will get more than $3 billion in breaks.

The state acted as homeowners lost their houses to foreclosures after they could not pay risky option-adjustable rate mortgages which offered initial low rates which grew beyond their ability to pay.

The states claimed Countrywide misled people about how the loans worked, the penalties they'd face, and the fact that paying only interest actually increased the money they owed.

Now, the company says it will help refinance the mortgages of many of those people made before December 31, 2007, into something they can afford, likely staving off foreclosure.

The attorney general's office estimates 52 thousand homeowners will qualify.

Consumers may call Countrywide at 1-800-669-6607 for more information. The Florida attorney general's fraud hot line can be reached at 1-866-966-7226

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