10,000 in Wash. get loan foreclosure relief

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10,000 in Wash. get loan foreclosure relief

05:58 PM PDT on Monday, October 6, 2008

By TERESA YUAN, KGW Staff

Settlement may help Wash. homeowners

VANCOUVER, Wash. -- Relief is on the way for some homeowners at risk of foreclosure in Washington.

Countrywide Financial Corp., a Bank of America subsidiary, would modify tens of thousands of loans in order to keep homeowners at risk of foreclosure from losing their homes.

Countrywide has settled a record $8.4 billion lawsuit over deceptive mortgage practices. Washington, with 10,000 Countrywide customers, was one of 11 states in the settlement.

The new relief would help "troubled borrowers" who got mortgages through Countrywide.

More: Fed to help squeezed banks

Borrowers with rates they couldn't afford could see cuts to interest rates and loan principals. Also, some late fees and pre-payment penalties would be waived.

Bank of America bought Countrywide back in June and planned to launch the new mortgage relief plan in December.

Countrywide customers who want more information should call toll-free: 1-800-669-6607. The company also plans to post information on its website at: www.countrywide.com

More: Read Wash. AG report