Relief for Colorado Homeowners Colorado Attorney Generals Office - - PowerPoint PPT Presentation

Relief for Colorado Homeowners

Colorado Attorney General’s Office

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As of March 2013, just over 7,000 Colorado homeowners had realized $398.0 Million in mortgage relief as follows:

 $50.0 Million in principal reductions to facilitate loan

modifications

 $75.0 Million in secondary lien extinguishment  $180.0 Million in loan forgiveness associated with short

sales

 $49.5 Million in deficiency waivers  $37.5 Million in the estimated savings from the

refinancing benefit

 $6.0 Million in other relief like cash-for-keys and anti-

blight efforts

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• Available to borrowers who lost their homes in

foreclosure from 2008 – 2011

• Borrowers filed a claim form attesting to dual track

problems or foreclosure misconduct by January 18, 2013

• Payments of approximately $1,480 were issued to

almost 23,000 Coloradans beginning June 10, 2013

• This is separate from the Independent Foreclosure

Review, which issued checks in May pursuant to a settlement by federal bank regulators. www.IndependentForeclosureReview.com

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42 pages of injunctive terms

304 Servicing Standards

 Implemented by October 2, 2012

Protects the integrity of the foreclosure process:

• Ensures accuracy of documents and standing to

foreclose

• Monitoring of attorneys processing foreclosures

Facilitates Loan Modifications:

• Eliminates the dual track problem
• Single point of contact for modification requests
• Timelines for consideration of a modification application
• No more lost documents

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The settlement is monitored by:

• Monitoring committee composed of HUD, DOJ and State Attorney General

Office representatives (including Colorado).

• Joseph A. Smith, Jr. , Former North Carolina Commissioner of Banking and

the Office of the Mortgage Settlement Oversight.

• Issues quarterly reports about compliance and relief obtained

by homeowners under the settlement.

• Monitor takes complaints from professionals associated with

mortgages at: www.MortgageOversight.com

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Colorado’s share: $51.17 Million

• Custodial funds which can be used for Foreclosure

Prevention, Loan Modification and Housing Programs

• Coordinated with the Governor’s Office, Division of

Housing, Leadership from the State Senate and House, lending community and the housing community

• Held public meetings in February and March 2012 and

received input from all interested stakeholders

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$18.2 Million to Colorado Division

• f Housing

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Created a $13.2 million revolving fund for the construction

• f affordable rental housing.
• The Division of Housing has awarded $10.5 Million for 7

projects

• Will add 844 affordable apartment rental units across

the state.

• By the time all of the funding is issued, we expect that

a total of 900 affordable housing units will be made available.

• As these loans are repaid the proceeds will be deposited

in the Housing Investment Fund, which shall be used to promote affordable housing in Colorado.

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$24 Million for loans to homeowners facing foreclosure who are unable to receive assistance through their mortgage loan servicer

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This program is intended to provide limited assistance to borrowers who have experienced a temporary disruption in income, unforeseen expense, or hardship which has caused them to fall behind on their first mortgage. These borrowers can afford the existing first mortgage payment but are unable to cure their default using traditional repayment programs. Program am Goal Cure the delinquency. Provide borrowers a hand-up, not a hand-out to stabilize their housing situation and prevent them from causing serious damage to their credit to cure the default.

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 Maximum loan amount is $50,000.  Funds advanced will be secured as a 0%

interest, deferred subordinate lien, due on sale or transfer (not to exceed 30 years).

 Lender late fees must be waived.  Homeowners must meet with a HUD-

approved housing counseling agency that is a member of the Colorado Foreclosure Hotline to determine eligibility.

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

Coordinates with housing counselor and mortgage servicer.



May interface with Public Trustee and/or foreclosure counsel as necessary.



Reviews application and issues approval/denial.



Requests payoff statement; prepares documents and has them properly executed and recorded; ensures proper disbursement of funds. Contact: Michelle Mitchell President Colorado Housing and Assistance Corporation (CHAC) 670 Santa Fe Drive, Denver, CO 80204 Phone: 303-572- 9445 x16 Fax: 303-573-9214 MichelleM@chaconline.org

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Provides securitized principal reductions to enable borrowers to qualify for loan modifications with their existing lenders, where the mortgage loan servicer is unwilling or unable to provide a principal reduction or the borrower is unable to qualify for a loan modification under existing programs. Program am Goal: Cure the delinquency. Provide borrowers who cannot afford their current mortgage payment the ability to stabilize their housing situation by obtaining an affordable mortgage payment through a loan

• modification. Enable borrowers with a strong likelihood of success to

have access to a modification.

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 Maximum loan amount is $50,000.  Funds advanced will be secured as a 0%

interest, deferred subordinate lien, due on sale or transfer (not to exceed 30 years).

 Lender late fees must be waived.  Homeowners must meet with a housing

counseling agency that is a member of the Colorado Foreclosure Hotline to determine eligibility.

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

Coordinates with housing counselor and mortgage servicer.



May interface with Public Trustee and/or foreclosure counsel as necessary.



Reviews documentation for compliance with program guidelines and issues approval/denial.



Prepares documents and has them properly executed and recorded; ensures proper disbursement of funds. Contact: Megan Ferguson Loan Programs & Outreach Coordinator Funding Partners 330 S. College Ave., Suite 400 Fort Collins, CO 80524 Phone: 970-494-2021 Fax: 970-494-2022 megan@fundingpartners.org



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$5.625 Million administered by Colorado Housing Finance Authority (CHFA)

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$5.625 25 Million Housing ng Counselin ing g Support Fee for Service: $4.4 Million Expansion to rural areas: $275,000 Ramp- up costs: $625,000

Program Administration: $325,000

$1.1 Million grant and outreach campaign

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 Call to speak with a HUD-approved nonprofit housing

counselor

 This is a FREE service available to anyone.

Do not need to be in foreclosure.

 4 out of 5 homeowners who meet with a counselor

successfully avoid foreclosure 1-877-601-HOPE (4673) www.ColoradoForeclosureHotline.org

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$1.5 Million grant

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 Foreclosure can result in the loss of your home.

Colorado law provides homeowners with important legal rights prior to your lender being able to foreclose on your home. Talk to a lawyer and find out your rights!

 Colorado Legal Services is a statewide nonprofit

• rganization that provides lawyers and legal assistance

to low-income and elderly homeowners facing

• foreclosure. If your house is in foreclosure, then CLS

may be able to assist you (subject to certain eligibility criteria and guidelines).

 TO FIND OUT IF YOU ARE ELIGIBLE, CALL TOLL-FREE:

1-855 55-787 787-0888 0888

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 Colorado Attorney General’s website:

Consumer Self Help Information, Scam Alerts and Complaint Forms

www.ColoradoAttorneyGeneral.gov/mortgagesettlement Colorado Consumer Line: 1-800-222-4444

 National Website:

Settlement Documents, FAQs and National News

www.NationalMortgageSettlement.com

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