Former Owners of Nevada Repo Homes to Get Countrywide Share
More than 3,400 Nevadans who previously owned repo homes taken back by mortgage lender Countrywide Financial Corporation are set to share in the $3,041,882 allotted to Nevada as part of Countrywide’s settlement agreement with the state of Nevada.
According to Nevada Attorney General Catherine Cortez Masto, notifications will be sent to 3,467 former Countrywide borrowers, including claims forms, information on the settlement with Countrywide Financial and advice on how to file claims with the administrator of the settlement agreement.
All borrowers who took out Countrywide home loans between the first day of January 2004 and the last day of December 2007, who occupied the properties as principal residences and whose properties became repo homes are eligible to receive a share in the Countrywide settlement.
Countrywide borrowers who lost their houses through short sale or deeds in lieu are also eligible under the program. Former owners of rental properties that became repo homes are excluded from the program.
According to Attorney General Cortez Masto, the final amount of settlement for each qualified borrower will depend on the final number of Nevadans who will file claims under the settlement agreement and who will sign the release document.
The more than $3 million payment will be allocated equally to all qualified claimants. If all 3,467 notified borrowers will file their claims, each claimant will receive $877.38 from the settlement. Payments will be mailed to eligible claimants in the first months of 2010.
The settlement between the state of Nevada and Countrywide is part of a nationwide settlement negotiated by Countrywide with several states in October 2008. Individual agreements with states were finalized in the first months of 2009.
For Nevadans who think they are eligible under the program, but who did not receive any packet, they should visit countrywidesettlementinfo.com or call Rust Consulting Inc.
Countrywide Financial, which was acquired by Bank of America in July 2008, also agreed to work out loan modifications for borrowers who took out subprime loans and pay-option flexible mortgage loans to help them afford monthly payments and keep their houses from lists of repo homes.
Monthly loan payments would be cut down to affordable levels through any repayment scheme that includes reduction of principal balance, reduction of mortgage rates or conversion from a flexible-rate to fixed-rate structure.
According to Attorney General Masto, late fees and other loan modification charges would also be waived to help more Nevadans save their houses from lists of repo homes.
