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<< Previous   of   Next >>   ADVERTISEMENT   Get help Those who have risky mortgages with Countrywide Financial Corp. could get help through a new loan modification program. For more information, call 800-669-6650 or go to www.countrywide.com.   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Tuesday, December 2, 2008 Help's on the way for troubled Countrywide mortgage holders The lender will modify loan terms for 400,000 homeowners with risky mortgages nationwide By Yoshiaki Nohara Herald Writer A new program designed to rescue people stuck with risky mortgages from Countrywide Financial Corp. kicked off on Monday. The program aims to modify mortgages for about 400,000 homeowners nationwide -- including many in Washington state -- so that they can avoid foreclosure and stay in their home. Countrywide is contacting those who could qualify for the program by phone and letter, said Rick Simon, a spokesman for Bank of America. The Charlotte, N.C.-based bank bought Countrywide, headquartered in Calabasas, Calif., on July 1. "It should be beneficial for customers and investors in the long run," Simon said. The program is required by the $8.4 billion settlement that Countrywide reached with Washington and 10 other states in October. The largest settlement of its kind in history includes $200 million for about 10,000 Washington home­owners in payment relief, according to the state Attorney General's Office. The settlement reflects the rising pressure from the government to reduce home foreclosures, which continue to plague the housing market. The program focuses on borrowers with subprime mortgages with high interest rates and expensive fees. Those who are delinquent on their risky loans for at least two months are expected to be eligible for the program. Adjustable-rate mortgages are considered particularly risky because their interest rates remain low for the first few years and are set to spike ­significantly later. It's unclear how long it could take to implement the program, Simon said. The first-year payments of principal, interest, taxes and insurance are targeted to equate to 34 percent of the borrower's income, he added. Those who think they could qualify for the program should contact Countrywide as soon as possible, said David Huey, assistant attorney general for the state Attorney General's Office. "You shouldn't wait for Countrywide to contact you," Huey said. When homeowners face mortgage problems, they tend to stop communicating with their lenders, Huey said, but that won't help them. They may also miss out on opportunities to solve their problems. "They have to open their mails and deal with their situation," he said. Reporter Yoshiaki Nohara: 425-339-3029 or ynohara@heraldnet.com. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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