April 7, 2009

STERLING HEIGHTS - Attorney General Mike Cox today announced that the City of Sterling Heights will receive a $250,000 grant to help fight the devastating effects of the home foreclosure crisis.  The grant comes as a result of a settlement with Countrywide Financial that also provides $6.7 million in direct payments to nearly 3,700 former Michigan Countrywide customers who lost their homes to foreclosure under certain circumstances.

"For most families in Michigan, the largest investment they'll ever make is their home," said Cox.  "But, too many families can't go home again due to a foreclosure.  These funds will help make a difference in the fight against the effects of foreclosures in Sterling Heights."

In addition to direct payments to former Countrywide loan holders, Cox today announced two broader efforts to help families and local governments fight the next wave of foreclosures. 

First, Cox announced a $250,000 grant to the City of Sterling Heights to assist their efforts in stabilizing neighborhoods hit hard by foreclosures. 

Second, Cox announced the scheduling of an Avoid Foreclosure Forum in Detroit on April 28, at Ford Field.  A previous round of forums helped nearly 10,000 Michigan residents sit down face-to-face with mortgage lenders, HUD-approved non-profit financial counselors and state officials in an effort to help families keep their homes during these difficult economic times. 

"With Michigan ranked sixth nationally in the number of home foreclosures, it is clear more must be done to help people stay in their homes" said Cox.  "By giving anxious homeowners a chance to meet with experts face-to-face at Ford Field, hopefully we can make a difference."

City of Sterling Heights Mayor, Richard Notte stated, "We are very grateful to Attorney General Cox for granting our community with funding to help ensure the vitality of our neighborhoods.  We recognize the agony that many of our residents face and hope that this money can be used to assist Sterling Heights families and neighborhoods."

As a result of the overall settlement, Cox said 3,697 Michigan residents who received sub-prime and pay-option ARM loans from Countrywide between January 1, 2004 and December 31, 2008, but later lost their home, will each receive a payment of $1,800.  Those eligible for the payment will be contacted via mail at a later date regarding their payment.  In addition, Countrywide Financial is required to offer as much as $129 million in savings to 9,700 Michigan customers through mortgage modifications in an attempt to keep families in their homes. 

Countrywide was also prohibited from selling sub-prime loans in Michigan for two years and is required to report quarterly to the Attorney General's Office on its progress in helping its troubled customers.

For more information about the Avoid Foreclosure Forum please visit www.michigan.gov/ag and click on the Avoid Foreclosure button.

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