Countrywide to pay $10.3 million to Texas borrowers

As part of an $8.4B settlement with 11 states, Countrywide Financial (now part of Bank of America) announced a restitution program totaling $10.3 million for qualifying Texas borrowers. The original settlement negotiated by Texas Attorney General Gregg Abbott called for a total of $345 million, the majority of which was aimed at modifying loan terms for subprime loan holders. Of the restitution program announced yesterday, about 75% of the funds will be dedicated to borrowers who lost their homes to foreclosure or were about to fall into foreclosure as of October 2008. The remainder will be dedicated to borrowers who have defaulted or are about to default on their subprime loans – qualifying borrowers could receive $2,000 compensation if they turn in their homes voluntarily, thus avoiding foreclosure. Countrywide borrowers who think they might qualify should visit Countrywide’s website and apply, call their toll-free number 800-669-6650, or visit a Bank of America branch for appropriate forms.

Note: When visiting Countrywide’s website, there’s no specific mention of this program. However, they are announcing a Home Ownership Retention Program.

Photo Credit: Monotasker

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