Countrywide Loans Settlement Guidelines: Are you Eligible?
In July 2009, the Office of the Attorney General reached a multi-state agreement with Countrywide Financial Corporation and Full Spectrum Lending to provide financial relief for those victimized by Countrywide’s lending practices. The landmark settlement provides approximately $8.68 billion in home loan and foreclosure relief to families throughout the country.
California Attorney General Edmund G. Brown Jr. stated that “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.” According to Attorney General Brown, “with this settlement, homeowners will receive direct relief from the catastrophic damage caused by Countrywide.”
The settlement follows a lawsuit filed on June 30, 2008, against Countrywide, claiming that the mortgage lender misrepresented loan terms, the potential for loan payment increases and deceived borrowers regarding their ability to sustain loans. The multi-billion dollar settlement is the largest of its kind, drastically surpassing the $484 million settlement in 2002 with Household Finance Corporation.
The Countrywide loan settlement essentially helps subprime and pay-option mortgage borrowers — who are eligible for assistance — evade foreclosure. The types of loans given protection under the settlement are considered to be of the high-risk variety, most commonly associated with default. Attorney General Brown believes that “this loan-modification program provides real relief for borrowers at risk of losing their homes.”
Should you be eligible for participation, there is a deadline for filing a claim form and release to obtain your payment. In accordance with the Florida Attorney General’s Office, Floridians must submit their forms by October 22, 2009. The minimum payment that eligible parties in Florida will receive is $3,019.28.
The skilled and experienced lawyers at Aylstock, Witkin, Kreis and Overholtz are ready to answer your questions about eligibility in the Countrywide loan settlement. Contact AWKO Law today to review your case and determine a course of action.