When kind-heartedness becomes indifference

Two years after the mortgage company Countrywide promised to help Katrina victims by suspending their mortgage payments, the company is not remaining true to its word:

According to a class-action lawsuit filed in Louisiana today,homeowners say the mortgage giant is now demanding any deferredpayments be paid up immediately, often with interest and penaltiesattached. Plaintiffs' attorneys say that as a result, many strugglinghomeowners have been sent into foreclosure.

In a goodwill gesture after Katrina hit two years ago, Countrywideannounced it would suspend mortgage payments for hurricane victims forup to 90 days. Homeowners say they were told by Countrywide agents thatany deferred payments would be added to the back end of the loan term,and that no lump sum, interest or penalties would be imposed.

According to the lawsuit, however, homeowners have been notified byCountrywide that they have to either pay the entire deferred amountimmediately or restructure their loan in a way that would cost themthousands of additional dollars.

We write all the time about war profiteering.  This is flood profiteering.  If these Katrina victims don't pay back their loans, Countrywide stands to rake in huge profits off all the interest.  Also, for this to happen on the two-year anniversary of Katrina is insulting.

Please call or email Countrywide and tell them how you feel about their indifference towards Gulf Coast residents, many of which are still trying to put their lives back together.

Also, email your Senators and House Representative, and urge them to investigate these despicable tactics by the mortgage industry.