Fighting Foreclosures
By Bill MimsOur office is awarding $50,000 for foreclosure relief counseling for Virginia families that are in danger of losing their homes to foreclosure. These grant funds are from a settlement in January 2009 with Countrywide Financial Corporation that addressed alleged deceptive acts and practices with Countrywide’s mortgage activities in Virginia.
Under the court-approved settlement, $50,000 was set aside for foreclosure education. This 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. 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.
Our office advises Virginians to stay observant and cautious in order to avoid potential foreclosure relief scams. For example, recently some families have lost homes due to a false belief that the mortgage counselors they are working with are connected to the government, when in fact, that is not the case. It is recommended to work only with a certified housing counselor. To search for a certified housing counselor, and learn more about laws and homeowners’ rights, visit the Governor’s foreclosure prevention Web site www.virginiaforeclosureprevention.com.
Preventing foreclosure isn’t achieved solely by the mortgage lenders or the counselors, but also by Virginians who decide to take control of their finances and reconcile potential issues, particularly staying in communication with lenders and managing spending responsibly. Foreclosures can best be prevented when homeowners and lenders are aware of the problems and jointly seek solutions.
Consumer protection is an important statutory duty of the Office of the Attorney General, and our staff can help. In an age of increased consumer issues, we all must continue to be educated and vigilant.