Some Texas homeowners facing foreclosure have new hope of saving their house. Monday morning, Countrywide Financial Corp. agreed to modify loans it gave out to thousands of families.

The Texas Attorney General's Office says Countrywide broke the law when it awarded sub-prime mortgages to certain families. It gave Countrywide the choice to change loan terms of sub-prime mortgages or head to court.

"Our economy is only as sturdy as out nation's home values. Foreclosures don't help homeowners and it doesn't help mortgage companies. Helping eligible Texans pay their mortgages and stay in their homes will help our great state weather this financial storm," said Greg Abbott, Texas Attorney General.

In a news conference Monday morning, Abbott said Countrywide agreed to a more than $8 billion deal to help homeowners facing foreclosure.

The agreement offers families with sub-prime mortgages from Countrywide a chance to modify their home loans.

Eligible homeowners may freeze or reduce interest rates, get extensions on their home loan or change to a fixed rate mortgage.

"This isn't going to solve all mortgage related problems, but it is a step down the path helping Texans stay in their home and continue to work to build the American dream," said Abbott.

The loan modification program is valid in eleven states, including Texas.

About 30,000 Texas homeowners will qualify.

"One step in the right direction is going to open up other avenues for it to become a national case where anybody and everybody can save their home," said Rey Vasquez, Austin realtor.

Over the next few months, Countrywide and Bank of America, which recently acquired Countrywide, will compile a list of eligible homeowners that are in default or likely to default on their loans.

Those families will be contacted starting December 1.

For homeowners that already lost their house; Bank of America has agreed to spend $150 million in assistance.

"Since acquiring Countrywide in July, we have committed significant resources and developed innovative programs to help as many Countrywide customers as possible stay in their homes,” said Barbara Desoer, Bank of America.

The Texas Attorney General's Office focused its investigation on Countrywide because it was one of the state's largest home lenders. Now that Countrywide has agreed to this new program, Abbott says his office will focus on the other lenders that awarded faulty sub-prime mortgages loans as well.