A lawsuit between the state of California and former Countrywide Financial Corp. CEO Angelo Mozilo and President David Sambol has been settled.
According to the settlement on Wednesday in the Los Angeles Superior Court, Countrywide will pay $6.5 million to a Foreclosure Crisis Relief Fund.
The fund is to provide help to homeowners whose property has been foreclosed upon. It will assist them with loan modification services as well as allocate money to local agencies to prosecute mortgage fraud.
The lawsuit stems back to 2008 when the state of California sued Countrywide, Mozilo and Sambol, claiming that they tricked borrowers with low rates on adjustable-rate loans but didn’t explain the details fully and this, in turn, left thousands of homeowners to default on their mortgage payments and end up in foreclosure.
Mozilo and Sambol left the company in 2008 after it was acquired by Bank of America Corp.
A foreclosure occurs when a mortgagor fails to pay their lenders their monthly payments and this results in the lenders repossessing the property. Foreclosure rates are increasing nationwide due to the current state of the economy, but there are still options available that homeowners can take advantage of. If you or a loved one have received a foreclosure notice or are defaulting on your payments, speak to a foreclosure lawyer today for help.
Foreclosure attorneys speak directly with lenders to try to work out an agreement that does not involve taking back the property. They will try to come up with alternatives, such as mortgage modification, refinancing or a temporary stop of payment so their clients can get back on their feet and pay the money owed on their homes.
Contact a foreclosure lawyer near you before it’s too late. Your paralegal will analyze your credit and try to come up with the best solution possible for your individual situation.
