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)