The law to delay and defer foreclosures in Colorado goes into effect August 1, 2009. The law will provide homeowners with an additional 90 days to come to terms with their lender so that the family can keep their home.
The new law is based on a few underlying principles, mainly that the fundamental idea of this new law to delay foreclosures is to provide time to the lender and borrowers to talk about the situation and to work out a mortgage loan modification that will reduce their mortgage payments to an amount that can be paid each and every month that is determined by a person’s income.
Anyone who faces a foreclosure will receive a notice in the mail. It is required that the lender and / or the Colorado Division of Housing provide a document to the homeowner for the purposes of informing the family of the possibility of obtaining a foreclosure deferment. The notice will clearly tell the borrower to call the Colorado Foreclosure Hotline for further information, or the homeowner can contact a Colorado non-profit agency. At that point an agent with the Colorado state hotline will help you figure out if you meet the full criteria for the assistance, and what the next steps are.
As with many programs, there are some very specific criteria and qualifications to get the extra 90-days of relief. They include the family needs to currently live in the house, the loan amount must be less than $500,000, the borrower plans to keep living in the house, and it must be the primary mortgage on the property, and there are some deadlines as to when the borrower needs to call the hotline and begin the process.
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