Attorney General Corbett announces $2.7 million in foreclosure relief for more than 1,100 PA residents as part of Countrywide Financial settlement

HARRISBURG, PA – July 24, 2009 – (RealEstateRama) — Attorney General Tom Corbett today announced that more than 1,100 Pennsylvania consumers have been sent notification that they are eligible for mortgage foreclosure relief as part of a settlement with Countrywide Financial Corporation.

Corbett said the Pennsylvania consumers who are being contacted are borrowers whose Countrywide loans resulted in foreclosure. Eligible consumers will receive a letter from the Attorney General’s Office, along with a claim form, instructions and other related information from the Countrywide Settlement Administrator.

A total of 1,151 Pennsylvania residents qualified for the foreclosure relief portion of the Countrywide Settlement, with each of those consumers eligible for a minimum payment of $2,388.

Corbett said the official notification letters and claims forms are being mailed to all eligible consumers today.  All Pennsylvania borrowers who have been identified as qualifying for this portion of the Countrywide settlement should receive notification within a week.

In addition to the Foreclosure Relief Program, the Countrywide settlement agreement contains various forms of assistance for other borrowers, including:
” Affordable, streamlined loan modification offers to more than 10,200 subprime and pay option adjustable rate mortgage borrowers in Pennsylvania;
” Waivers of default/delinquency fees, loan modification fees and prepayment penalties;
” Countrywide also agreed to put a freeze on their foreclosure processes until each eligible consumer has had their financial status verified.

Assuming every eligible borrower participates, this loan modification program will provide more than $150 million in savings to Pennsylvania consumers.

Corbett noted that consumers can call Countrywide’s hotline at 1-800-669-6607 for more information about their eligibility for various relief programs.

Consumers with concerns or complaints are encouraged to contact the Attorney General’s Consumer Protection Hotline, at 1-800-441-2555, or file an online consumer complaint at www.attorneygeneral.gov (Highlight the “Complaints” tab on the main menu and select “Consumer Complaints” from the list that appears).