Distressed homeowners across Florida will receive free legal advice and free counseling under a program to be financed with money given to the state of Florida by Countrywide Financial Corporation under a settlement agreement so they can prevent their houses from becoming bank owned homes.

Countrywide Financial Corporation, now owned by Bank of America, has settled with 40 states which sued Countrywide for its predatory lending practices. It has given an initial amount of $2 million to Florida as restitution for the allegations.

Florida Attorney General Bill McCollum in turn presented the check of $2 million to the Florida Bar Association for the funding of a program to help homeowners save their homes from getting into lists of bank foreclosure homes.

During the presentation of the check, representatives of the Florida Legal Services Inc. and Cuban American Bar Association were also present, in addition to representatives of the Florida Bar Foundation.

The Florida Bar will use the money to help nonprofits hire lawyers and paralegal professionals to help homeowners in their efforts to save their houses from becoming bank foreclosure homes for sale.

McCollum said that because of the large numbers of foreclosure cases in Florida, many homeowners have become desperate for help, oftentimes victimized by people who have different intentions. The free legal help to be provided to them under the program will make a difference in their fight against foreclosure.

The $2 million is the first part of the $4 million allotted to Florida, with the second $2 million to be made available in 2010. The amount of money to be given to nonprofits will depend on the number of foreclosure homes in the areas that they serve.

Lawyers who work for foreclosure cases ensure that lenders follow state laws on foreclosures and follow foreclosure procedures.

Before Countrywide was acquired by Bank of America in 2008, Countrywide was sued by attorneys general across the country for its role in the foreclosure crisis. Being the country’s biggest home loan originator, the large number of Countrywide mortgages that later went into foreclosure contributed a lot to the collapse of the housing market.

Countrywide was accused of originating risky and high-cost home loans for borrowers who did not fully understand the kinds of loans they were taking out and who did not have the capacity to pay the loans.

It is hoped that with the money from Countrywide, more homeowners in Florida can save their houses from becoming bank foreclosure homes.