Last October, the Bank of America agreed to provide its foreclosure relief services to troubled borrowers, whose houses is now included in a bank foreclosure list, in an agreement entered with several Attorney Generals. Holding up its end of the bargain, the financial giant has started to mail letters to the homeowners whose mortgage originated from Countrywide Financial Corp, which it purchased in July of 2008.

The said foreclosure relief program is said to be funded by as much as $150 million and participated by 40 states. Borrowers who have gone through a foreclosure, deed in lieu of foreclosure or a short sale will be informed if they qualified to receive a certain amount as settlement payment.

In addition, the program is just the first component of the agreement with the Attorney Generals. The second part of the deal, which is called the National Homeownership Retention Program, will involve providing sustainable and affordable loan payments for as many as 400,000 mortgage borrowers. The borrowers should have an adjustable rate housing loan with payment-option that was serviced previously by Countrywide.

The last part of the agreement will involve the providing of a relocation assistance or aid to homeowners who suffered through a foreclosure sale but agree to move out of the home, which is already in a bank owned foreclosure home, voluntarily. They will receive cash that they could use to somehow ease the transfer to their new home.

Settlement payments are said to start by the first quarter of next year. Both the notifications and payments are managed by Rust Consulting. Any inquiries should be directed to them.

Countrywide was believed to be the “ground zero” of the housing and mortgage crisis that resulted to millions of homes in bank foreclosure list. Aside from this, it also caused the financial industry losses amounting to billions. Last month, Angelo Mozillo, co-founder of the said financial institution was charged with insider trading and securities fraud by the SEC.