Eleven states, including North Carolina, have reached an agreement with Bank of America and Countrywide to help nearly 400,000 homeowners across the country facing foreclosure.

Attorney General Roy Cooper said Monday the agreement is expected to provide $71 million in reduced mortgage payments to more than 5,000 North Carolina borrowers.

"Thousands of North Carolinians who are struggling to pay their mortgages and keep their homes will get relief thanks to this agreement," Cooper said in a press release.

As part of the settlement, Countrywide has agreed to:
• Modify loans for eligible borrowers so they will be better able to afford to keep their homes.
• Modifications may include an automatic freeze or reduction in interest rates, conversion to fixed-rate loans, and refinancing or reduction of the principal owed. Under the modifications, first-year payments of principal, interest, taxes and insurance will be targeted to equal 34 percent of the borrower's income.
• Countrywide has also agreed to stop making problematic high-cost mortgages and payment option adjustable rate mortgages.
• Bank of America and Countrywide will pay $150 million to participating states to help consumers who have already lost their homes to foreclosure.
• Bank of America and Countrywide will also pay up to $70 million for relocation assistance to borrowers unable to stay in their homes, and will waive up to $60-$80 million in prepayment penalties and default fees.

The program is expected to begin by Dec. 1, 2008.

Countrywide customers can call 800-669-6607 toll-free for more information or visit the company's website.

North Carolinians who are facing foreclosures and who are not Countrywide borrowers can get free help by calling the HOPE Hotline toll-free at 888-995-HOPE 24 hours a day, seven days a week.