Oregon Public Broadcasting

Help may be on the way for thousands of Northwest homeowners who got in over their heads during the housing bubble.

Bank of America has agreed to provide relief to customers who got sub-prime or adjustable rate mortgages from Countrywide Home Loans. The settlement was announced Monday, as correspondent Austin Jenkins reports.

Bank of America acquired home mortgage giant Countrywide this summer. The attorneys general of California, Washington and other states pressured B of A to renegotiate the mortgage terms of hundreds of thousands of distressed homeowners.

Terry Duffy heads a housing counseling agency in Vancouver, Washington. She hopes this rescue plan will allow some of her clients to keep their homes.

Terry Duffy: “Frankly it’s not really until the program is implemented are we going to be able to understand how helpful this measure is, but it’s a wonderful first step.”

Approximately 10,000 Countrywide customers in Washington State could receive loan relief in the form of lower interest rates and a reduction in the amount of principal owed.

Oregon and Idaho were not included in the 11-state settlement. However, the Washington State Attorney General’s office expects the same settlement terms will be extended to those states.