June 29, 2009
William C. Mims
Attorney General
(804)786-2071
Contact: David Clementson
www.vaag.com (804) 692-0552
dclementson@oag.state.va.us
$50,000 Authorized by Countrywide Settlement to Educate Virginia Families
Attorney General Bill Mims today awarded $50,000 for foreclosure relief counseling for Virginia families that are in danger of losing their homes to foreclosure.
The grant funds are from a settlement in January 2009 with Countrywide Financial Corporation. The settlement addressed alleged deceptive acts and practices with Countrywide’s mortgage activities in Virginia. Under the court approved settlement, Virginia set aside $50,000 for foreclosure education.
The $50,000 contribution will fund grants to nonprofit counseling agencies, and is projected to benefit about 200 Virginia families facing foreclosure.
“In this difficult economic climate, an unprecedented number of families are struggling to make ends meet,” Attorney General Mims said. “I am pleased that these funds from the Countrywide settlement will provide a real benefit to Virginia families in danger of losing their homes to foreclosure.”
The donation will supplement funds allocated by the Virginia Housing Development Authority and the Department of Housing and Community Development. VHDA will administer the grant program.
“It was a pleasure working with the Attorney General’s Office to bring relief to Virginians in distress,” said Susan Dewey, executive director of the Virginia Housing Development Authority. “I am excited that our partnership will help homeowners receive the counseling that they need, as we work to keep Virginians in their homes.”
Virginians facing foreclosure are encouraged to work directly with their lenders or servicers to see whether a loan modification or other relief is possible. Virginians also may consult with a HUD-approved foreclosure avoidance counselor, or the Homeownership Preservation Foundation’s HOPE Hotline, toll free at 1-888-995-HOPE.
The Governor’s foreclosure prevention website, www.virginiaforeclosureprevention.com, includes data on laws and homeowners’ rights.
As the Attorney General’s Office continues enforcing laws that protect Virginians, homeowners are encouraged to be vigilant to avoid potential scams. Homeowners can protect themselves by avoiding any foreclosure rescue business that engages in any of the following conduct:
guarantees it can stop the foreclosure process, no matter what the homeowner’s circumstances
instructs homeowners not to contact their lenders, lawyers or credit counselors
collects a fee before providing services
requires homeowners to make mortgage payments to it as opposed to their lenders or servicers.
