Financial Giant Stepping Forward To Help Foreclosure Victims

The giant body, Countrywide Financial Corporation said on Friday that it is acting in tandem with a community group, ACORN that has been highly critical of its efforts to alleviate the troubles of foreclosed victims. However of late both entities have come to an agreement and hope to disclose the basic steps that will be taken allowing for people to stay on in the houses that have been so far their homes. The programme will be officially launched during the first part of the forthcoming year.

ACORN had taken to the streets in October in front of the offices of Countrywide in all the important cities of US – New York, Miami, Baltimore, Cleveland and San Jose. The allegation was that the troubled were not seeing much positive action from Countrywide. Hotel and textile workers have organized themselves to boycott the services of Countrywide urging none to make deposits in their banks because of its ill treatment of borrowers. ACORN played an active part in cooperating with the Senate Banking Committee in sketching out action plans for helping the foreclosure victims.

ACORN had pressed Countrywide to modify loans by converting the ARM’s into fixed rate mortgages for those who could afford this change. In a press release Maude Hurst a spokesperson of ACORN commented that it was not enough of Countrywide to offer such plans that in the long run proved to be unaffordable. Short-term modifications will be of no help. Borrowers will just continue to live under fear vaguely hoping that the real estate market would recover. The first step towards easing the foreclosure crisis would be the shifting into the fixed-rate mortgage zone from sub-prime floating interests. Hotel and textile workers have organized themselves to boycott the services of Countrywide urging none to make deposits in their banks because of its ill treatment of borrowers. ACORN played an active part in cooperating with the Senate Banking Committee in sketching out action plans for helping the foreclosure victims.

Countrywide stated that already the terms of 12,565 loans have been modified in November. A year ago the number during the same month had been 800. This year Countrywide has blocked as many as 69,171 foreclosures. Loans numbering 45,735 have been modified. 11,148 loans have been shifted to the long-term mortgage agreement. Forbearance loans numbered 4,191, short sales numbered 6,880 and there were 1,0209 deeds-in-lieu of foreclosure.

Working together is nothing new to ACORN and Countrywide. The financial body has financially supported to many projects undertaken by the former. It has helped in the setting up of a hotline. Countrywide had contributed $100,000 towards rehabilitation of hurricane victims in New Orleans and helping repayment of mortgages.

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