CCLP Assists State Leaders with Foreclosure Assistance Plan

CCLP was pleased to see Gov. Bill Ritter, Rep. Mark Ferrandino and other state leaders announcing a foreclosure plan this morning. Likewise CCLP appreciated the opportunity to work with Rep. Ferrandino, Sen. Morgan Carroll, community advocates, representatives from the financial sector, and the Governor’s Office in helping to shape a foreclosure-deferment bill that will be introduced this week.

The foreclosure deferment bill – touted in Gov. Ritter’s Jan. 8 State of the State Address and sponsored by Rep. Ferrandino and Sen. Carroll – will extend a 90-day foreclosure timeout to qualified homeowners so they can renegotiate their mortgages and craft new payment plans.

“As Coloradans grapple with a growing economic crisis and increasing job losses, it’s critical that the state provide avenues for families to get back on their feet,” said Ed Kahn, Special Counsel at CCLP. “Strengthening the safety-net for working families and lower-income Coloradans will help shorten the recession and move more Coloradans toward economic security.”

Additional information from the Governor’s Office Press Release:

“During this time of global economic crisis, it’s critical that we provide relief to homeowners who are already caught up in the foreclosure process, and that we prevent additional foreclosures in the future,” Gov. Ritter said. “The Countrywide settlement and the foreclosure-deferment bill will help Colorado accomplish both of those goals by keeping families from losing their homes and the American dream.”

The $6 million Countrywide settlement stems from allegations by the Attorney General’s Office that Countrywide and its affiliates marketed and offered subprime and other high-risk loans. The settlement will provide direct and immediate financial assistance to borrowers who are in default or facing foreclosure. An estimated 6,800 Colorado homeowners will benefit.

The settlement also provides $500,000 to the Colorado Division of Housing’s Foreclosure Hotline (1-877-601-HOPE) for continued operation and expansion of one of the nation’s best foreclosure-prevention programs. The hotline has helped thousands of homeowners stave off foreclosure by connecting them with HUD-approved foreclosure counselors and other resources.

“This bill [foreclosure] will require borrowers and lenders to take and share responsibility,” Rep. Ferrandino said. “It will help responsible borrowers get back on track, stay in their homes and hold onto the American dream.”

“Parts of my district are seeing 78 percent of homes in some state of foreclosure," said Sen. Morgan Carroll (D-Aurora). "Foreclosures don't just affect the people losing their homes; it affects their children, their neighbors, and their entire community. This bill should take a positive first step in helping people get out of foreclosure and on track toward staying in their homes.”