Foreclosure Help in Colorado
Colorado homeowners who are struggling to make their mortgage payments do not have to fall victim to foreclosure. State and federal assistance can be used to avoid foreclosure. Even if you cannot save your home, alternatives can help you delay foreclosure or prevent the credit consequences. In Colorado, the average foreclosure process takes six months.
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Colorado Foreclosure Hotline
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The Colorado Foreclosure Hotline (877-601-HOPE) is a resource that connects homeowners with nonprofit housing counseling agencies. Counselors provide homeowners with information about the foreclosure process. In addition to the information, counselors will access each case to evaluate the best course of action. Some homeowners benefit from a budget or prioritizing spending, while others may need to sell the home in a short sale. If you need help communicating with your lender, counselors act as facilitators for negotiations between you and the lender. All counseling agencies referred by the hot line offer services free of charge.
Making Home Affordable
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The federal Making Home Affordable program was implemented in 2009. The program helps homeowners who are delinquent. If you are not more than 30 days behind on your payments, you may be eligible to refinance at a lower interest rate. The loan must be guaranteed by Fannie Mae or Freddie Mac. The program also offers loan modifications to homeowners who are already late on the mortgage. A modification will permanently adjust the terms of the loan. For example, the interest rate can be lowered and the length of the loan extended. If you have a second lien on the home, both loans may be modified to lower the payment.
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90-Day Extension
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In 2009, Colorado Gov. Bill Ritter signed a bill that provides homeowners with an additional 90 days to workout possible solutions with their lenders. The extra 90 days is only available to homeowners who meet specific qualifications. The family must currently be living in the home and plan to remain in the home and the primary loan cannot exceed $500,000. Borrowers are encouraged to call the Colorado Foreclosure Hotline to determine if they qualify for the 90-day extension period.
Home Affordable Foreclosure Alternatives
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The Home Affordable Foreclosure Alternatives program offers aid to homeowners who are running out of options. After exhausting all options, homeowners can consider selling the home through a short sale. In a short sale, the bank agrees to accept less than the balance remaining on the loan. When a property is on the market for 90 days and does not sell, your lender may be willing to allow you to relinguish ownership rights through a deed in lieu of foreclosure. Both methods are used to prevent foreclosure. Even though the home cannot be saved, you will not walk away homeless. Through the program, Colorado homeowners can receive up to $3,000 to use toward relocation.
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