Checks for $6,000 are soon to be dispatched to some homeowners from this week as part of a nearly $21 million settlement Countrywide Financial Corp. has agreed to with the Florida Attorney General’s office. The amount that has been approved is $16.9 million, and will make a considerable difference in lives of those who are trying to save their homes.
With rates and penalties that were misleading, Countrywide had earlier put borrowers into mortgages they couldn’t afford or loans that were impractical to be paid back. The government had said that the tactics were deceptive and trading practices were unfair. The settlement was based on a July 2008 lawsuit filed against Countrywide, one of the nation’s largest mortgage companies.
The checks will be distributed to 2,700 people based on a 2008 settlement and releases. The current a program will be administered by the Countrywide settlement administrator.
The eligible borrowers who returned valid and timely claim forms will be getting the payments over the next two years. For people who cannot afford an attorney to review their case, free legal assistance is eligible to homeowners facing foreclosure.