Boulder County helps handle foreclosure problems

Colorado has a foreclosure problem, and Boulder County isn’t immune, but help is now available.

Realtytrac, an Irvine, Calif.-based company that tracks foreclosures, has found that per capita Colorado ranks near the top in foreclosures.

A search on the Web site of the Boulder County Public Trustee’s Office, which administers foreclosure proceedings for properties located in the county, found 784 foreclosures during 2006.

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According to Patricia Demchak, Boulder County public information officer, help is all around. She said housing counseling services are available to homeowners through the Boulder County Housing Authority.

“Their counselors and the volunteer housing counseling program represent an extraordinary resource to home owners facing foreclosure,” Demchak said.

The housing authority number is 720-564-2279 or 1-800-526-4287.

The state also has created a foreclosure hot line – 1-800-601-HOPE – for those interested in learning more about options in the face of foreclosure.

“Boulder County attempts to be proactive in supporting and educating our residents,” Demchak said. “Our housing authority offers a number of programs to educate existing homeowners and potential homeowners – particularly first-time buyers – so that they can avoid bad financial situations that may result in foreclosures.”

She added that the programs also offer counseling and mentoring for individuals who may already be facing foreclosure. The programs include:

_ Homeownership/first-time buyers classes, a three-level training course that helps buyers understand what they can afford versus what they can qualify for, which Demchak said isn’t necessarily the same thing.

_ Down payment assistance for qualifying first-time homebuyers.

_ A four-part financial fitness program that teaches smart finances and a wise approach to lending and loans.

_ A housing counseling program that offers counseling on budget and credit, mortgage default and delinquency, and more. (County officials report this program recently got a $54,391 grant from the federal government to fund a housing counseling coordinator.)

_ Volunteer mentors who give their time to offer financial mentoring.

Visit www.co.boulder.co.us/cs/ho/counseling for more information about the programs.

So what should people know about foreclosures?

Experts have said that signs of foreclosure danger include a loss of employment, divorce and major health problems.

“The first missed mortgage payment is the earliest formal sign of distress of the borrower,´ said Ryan McMaken, a spokesman for the Colorado Division of Housing.

He added that officials are working to build an early warning system so counselors can make early contact with borrowers who have missed a payment.

“Getting lenders to commit to this approach is vital to the success of this effort,” McMaken said.

He also said it’s important not to wait until you get a notice about foreclosure.

“It is much easier to work with lenders earlier in the process,” McMaken said. “However, even when addressing the problem early, we recommend contacting the hot line so that a housing counselor can provide free assistance to ensure you know all your options.”

He added that once a borrower in distress goes into the formal foreclosure process, the prospect of a constructive outcome is “materially diminished.”

McMaken said overcoming denial is essential for the borrower in distress.

“For the borrower that is behind on payments, calling a qualified housing counselor and engaging their lender, is highly advised,” he said.

Navigating the corporate structure of many lenders can be difficult for borrowers without a counselor.

“Housing counselors who know how to work with lenders provide free assistance to borrowers in working with these large institutions,” McMaken said. “The counselors know how to pursue a repayment plan or a short sale arrangement or any of the other options that the borrower may need assistance in understanding.”

The state reports that 7 percent of those who have had a face-to-face meeting with housing counselors have confirmed foreclosures.

“We were unable to contact 12 percent of those who had such meetings with counselors so potentially 19 percent have had foreclosures assuming all of the 12 percent foreclosed, but we can say that four out of five homeowners who meet with counselor avoid foreclosure,” McMaken said.

Also, McMaken advised to consider using the hot line simply as a resource. “You don’t have to be in foreclosure to take advantage of the help housing counselors can give,” McMaken said.

How you can help?

Volunteers are needed to help families in foreclosure.

The Boulder County Housing Authority is working to reverse the trend of foreclosures in Boulder County and is seeking volunteer housing counselors to help individuals or families keep their homes or save their credit.

Counselors receive three days of training and then work with Boulder County residents to resolve financial problems, negotiate loan plans and understand mortgages and government programs.

For more information, call 303-441-3929.