Bank of America aims to help 265,000 avoid foreclosure

CHARLOTTE, N.C.—Bank of America Corp. said Monday after it completes its acquisition of Countrywide Financial Corp. it will modify or workout at least $40 billion in mortgage loans over the next two years to help customers avoid foreclosure.

In January, Countrywide agreed to sell itself to Bank of America Corp. in an all-stock deal, which at the time of the announcement was worth about $4 billion. The deal is expected to close in the third quarter.

Bank of America aims to keep about 265,000 customers from avoiding foreclosure through the plan.

Tenants living in properties facing foreclosure will be able to remain in their homes for 60 days after the completion of foreclosure proceedings, and will get $2,000 to defray moving expenses if they voluntarily leave.

Bank of America also said it plans to spend $1.5 trillion over the next 10 years in community development efforts. The community development project will focus on affordable housing, economic development and consumer and small business lending. Further details about the community development program will be released once the acquisition of Countrywide is complete.

Shares of Bank of America fell 30 cents to $38 in midday trading. Countrywide shares fell 5 cents to $5.79.