The California Attorney General has announced that the state will use the $6.5 million settlement it received from two former Countrywide Financial Corp. executives to create a fund to assist foreclosed homeowners. The two executives, Angelo Mozilo and David Sambol, were accused of luring buyers into mortgages they could not afford by offering low teaser rates, imposing large prepayment penalties, failed to fully inform buyers of the downside of adjustable-rate mortgages, etc.
The lawsuit also alleged that Countrywide did not comply with industry lending standards in order to make higher numbers of loans and the two executives, Mozilo was the CEO and Sambol was the President, knew about these practices and did nothing to stop them. The monies will be used "to help Californians affected by the mortgage crisis by providing grants to agencies that help homeowners facing foreclosure with relocation assistance and providing money to state and local agencies to prosecute mortgage fraud" according to the Attorney General's Office. California has remained among the top three states with the highest foreclosure rate since the housing crisis began in 2007.
If you are facing a Florida Foreclosure Lawsuit from Countrywide Bank, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to see what foreclosure alternatives may be available to you.
