Troubled Calabasas-based mortgage lender Countrywide announced Monday that it has completed more than 17,000 loan modifications this year in an attempt to curb foreclosures.

The firm is on target to complete nearly 25,000 modifications in 2007, a company official said. Loan modifications involve changing one or more loan terms that bring a defaulted loan current and provide sustainable affordability.

"Our No. 1 priority is to help borrowers stay in their homes," said Steve Bailey, Countrywide's senior managing director of loan administration.

In what Bailey called "an unprecedented effort," Countrywide officials are working with nonprofit and community groups across the nation in attempts to contact and counsel distressed borrowers, particularly in communities that are experiencing unusually high foreclosures.

"No one benefits from foreclosure, and counseling and intermediary support from these groups can be fundamental to the success of our borrowers," Bailey said.

Countrywide is urging customers facing an increase in their mortgage payment or who fear falling behind on their payments to call its home-retention team at 800-669-6650.

Because of the meltdown in the subprime home loan market, Countrywide announced this month it would reduce its workforce by 20 percent, which equal between 10,000 and 12,000 employees.