Journal-News.com

It started out with daily phone calls and nightly prayers that were finally answered by a handful of lawyers.

"Sometimes God does answer prayers and sometimes all your work pays off," said New Miami resident Kim Baker.

The 27-year-old has been fighting for the past 18 months to keep her home out of foreclosure after her lender, Countrywide Financial Corp., allegedly modified her fixed-rate loan by increasing her payments more than $250 a month.

The increase was causing Baker and her husband, Michael, to choose between keeping food on the table for their four boys or keeping a roof overhead, she said.

But on Monday, Oct. 6, Bank of America Corp., which bought Countrywide in July, agreed to provide up to $8.4 billion to modify troubled mortgages in a legal settlement that could help Baker — along with 8,000 other Ohioans.

Baker said she feels no remorse for the company that has cost her so much emotionally and financially.

"I can only say one thing nice as possible to (Countrywide), and that is God does answer prayers and everything they have done is coming back on them now," she said.

The settlement program includes $150 million for customers who were foreclosed on or are at serious risk, $4.5 million of which is headed to Ohio. An additional $70 million will support homeowners facing imminent foreclosure and needing to relocate.

Relocation aid and waivers will help Countrywide borrowers in Ohio to the tune of about $1.4 million, said Attorney General Nancy Rogers.

The bank also has agreed to waive $60 million to $80 million in prepayment and default fees, and added that foreclosure sales will not be initiated or advanced for borrowers likely to qualify for the modifications. The bank will revise customers' payments so they don't exceed 34 percent of income.

Still, it's no free ticket. Initial communications with bank officials indicate the Bakers will still have to put up to $3,000 down to settle their case. Baker said she is working with a counselor and the Ohio Attorney General's Office to work out a mortgage deal so her family can keep their home.

"I am just excited we get to keep a home and our kids will have a home," she said. "Finally, something is happening."

Contact this reporter at (513) 705-2843 or jheffner@coxohio.com.