WSJ: Countrywide Postpones Foreclosure Sales Amid Allegations

March 5, 2008 No Comments »

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According to a report by the Wall Street Journal, Countrywide Financial voluntarily delayed 103 foreclosure sales scheduled in Texas yesterday to address lawsuits alleging it attempted to unlawfully foreclose on borrowers.

Unsurprisingly, Countrywide denied all of the allegations and continues to stand by its practices.

This isn’t the first time the Calabasas, CA-based mortgage lender has been accused of fiddling with bankruptcy proceedings.

Back in January, Countrywide was reported to have fabricated documents involved in a Pennsylvania homeowner’s bankruptcy case, just one of more than 300 cases in that state alone.

In recent months, consumer advocacy groups, borrowers, and the mainstream media have stepped up attacks against Countrywide, fearing that their past problems will be swept under Bank of America’s rug.

Shares of Countrywide were off 30 cents, or 5.06%, to $5.63 in afternoon trading on Wall Street, well below Bank of America’s original bid of $7.16 to acquire the under-fire lender.

(photo: qfamily)

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