Bank of America changes loans to avoid lawsuits
Advertisement
Text size: small | medium | large
AP
Published: October 6, 2008
Facing a lawsuit over deceptive mortgage practices, a Bank of America subsidiary will modify tens of thousands of loans to help keep people in 11 states from losing their homes.
The Illinois attorney general’s office says those stuck with Countrywide Financial mortgages they can’t afford could see their interest rates reduced or have the loan principal cut.
Some customers may end up paying nothing but interest for a decade. And those who can’t afford to keep their homes even with the changes will still be able to get help moving to a new home.
Bank of America purchased Countrywide in June, at the same time Illinois and California sued the company.
Officials from the two states negotiated the settlement and nine more states joined. Even more states could sign on.
In California alone, the settlement will offer 3.5 billion dollars in relief. For Illinois, it’s worth 190 million dollars.
Post a Comment
The commenting period has ended or commenting has been deactivated for this article.
Can't find what you're looking for? Try our quick search:
