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Foreclosure
CALL 1.877.601.HOPE
Free Help from Trained Housing Counselors
to Homeowners to Avoid Foreclosure if
- you have missed a payment
- you have missed several payments
- foreclosure notice or proceedings have already started
- You can probably stay in your home
Did you know...- Colorado was ranked 1st in the nation on foreclosure rates in 2006?
- Colorado is currently ranked 5th worst in the nation on foreclosure rates?
- National foreclosure rates increased 36% in just one month
- $4 Billion dollars in ARM loans are coming due next month
- Typically a 30% Increase in Payment for those under ARM
- Colorado is 10th worst in nation on Mortgage Fraud
- Banks lose money on foreclosures (avg. $59,000 loss per home)
- When facing foreclosure only 50% of homeowners ever call their lender
Foreclosures impact us all:- If it is not you, your family or someone you know, it is
- Abandoned Properties
- Increased Vandalism / Theft
- Maintenance Deterioration
- Depreciation on Surrounding Property Values
- Changes in Loan Underwriting Practices
- Decreased property tax revenue that supports: police, fire, schools, local services
What are the causes behind our foreclosure crisis?- "Creative Financing" - ARMS, balloons, early "teaser" rates
- Mortgage Fraud
- Predatory Lending
- Appraisal Inflation / Fraud
- Flat or Depreciating Property Values
- Homeowners "Upside-Down" on Loan
- Divorce or Separation
- Pregnancies or Growing Family Costs
- Medical Emergencies (Uninsured, Underinsured)
- Job Loss, Job Change
- Increases in HOA Dues or Assessments
- Overbuilt housing market (Too many houses built, on market)
- Special District Taxation -- Awareness by Homeowner
- Loan Originators Commonly Not the Underwriters Accepting Risk
What you should know / Resources:- FREE: Colorado Foreclosure Hotline 1.877.601.HOPE
- Call your lender -- Ask for Risk Management Specialist
- Check to see if your mortgage broker is registered 303.894.2166
- Attend Home Ownership Education Classes, Fairs (Aurora has one)
- Do not try to reach into more house than you can safely afford
- Obtain copies of the HOA minutes, assessments so you can plan
- Beware of Scams preying on people
- Contact a trusted realtor to learn more about short sales
What policy-makers can do about it:- smart growth policies (cities, counties) - avoid over-building
- code enforcement on property values (cities)
- home ownership education programs (city, state)
- foreclosure hotlines (state)
- crackdown on mortgage, appraisal fraud & predatory lending practices (state, AG)
- purchase programs (buy, renovate, resell) & avoid foreclosure on credit (city, state or fed)
- licensing, registration, enforcement (state)
- expand the FHA program (federal)
- support a living wage, job growth and stability (city, state and fed)
- fix the healthcare crisis (state and fed)
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