Are you a homeowner in Hawaii facing foreclosure? Is your loan with Countrywide?
The State of Hawai`i’s Office of Consumer Protection has reached an agreement with Countrywide Financial Corp. and Bank of America that may help approximately 2,400 Hawai`i homeowners holding subprime or adjustable rate mortgages avoid foreclosure by obtaining modified and affordable loans.
Under this agreement, eligible Hawai`i borrowers will be able to modify the terms of their loans to make monthly payments more affordable, and avoid foreclosure. The modified loan terms will vary according to the circumstances of the borrower. The terms may include an automatic freeze or reduction in interest rates, conversion to fixed-term loans, and refinancing or reduction of principal owed.
The loan modification program will provide total statewide benefits to eligible homeowners in Hawai`i as follows:
• Suspension of Hawaii foreclosures for eligible borrowers with subprime and pay-option adjustable rate loans pending determination of borrower ability to afford loan modifications
• Loan modifications valued at up to $83 million worth of reduced interest payments and, for certain borrowers, reduction of their principal balances .
• Waiver of prepayment penalties of up to $289,000, for borrowers who receive modifications to pay off, or refinance their loans
• $370,000 in payments to borrowers who are 120 or more days delinquent or whose homes have already been foreclosed; and
• Approximately $126,000 in additional payments to borrowers who, in the future, cannot afford monthly payments under the loan modification program and lose their homes to foreclosure.
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