Proposed Colorado Foreclosure Laws Aim to Stop Foreclosure Problem in State!
With Colorado topping the dubious chart of having the greatest percentage of foreclosures per household in the United States, state legislators have helped push four bills aiming to stop foreclosure closer to approval.
Joint Economic Committee data revealed that there was one Colorado foreclosure per every three households in 2006, a rate which surpassed runner-up states Georgia, Nevada, Texas and Michigan.
The Colorado foreclosure problem was highest in Denver, which has been described as some as being the "wild, wild west of mortgage fraud." Specifically, there were more than 37,400 Denver foreclosures last year.
With such information in mind, state legislators have been searching hard for solutions to stop foreclosure in Colorado. A recent Denver Post story provided some more details about these proposed Colorado foreclosure laws.
• House Bill 1322 and Senate Bill 216 would both regulate the conduct of mortgage brokers. Initially, HB 1322 mandated that mortgage brokers work with the "benefit of the borrower" in mind, language which was much stricter than the Senate's proposed foreclosure law. SB 216 stipulates that mortgage brokers act with "good faith and dealing."
Critics of the House's proposed Colorado foreclosure law said that its requirement created a financial obligation to the borrower that wasn't practical from a business perspective or enforceable from a legal standpoint. Colorado Attorney General John Suther's office ruled that these proposed bills to stop foreclosure in Colorado needed to follow the same standard. With that in mind, HB 1322 was amended to have the "good faith and dealing" language rather than the original "benefit of the borrower" language.
• Senate Bill 203 would convert the state's mortgage-broker registration system to a licensing system, and thus make it more difficult for shady lenders to get involved in the process in the future. The Denver Post story said that lenders alone initiated more than 28,000 foreclosures in Colorado last year. More than 19,000 of those lender-initiated foreclosures took place in Denver.
• Senate Bill 85 would make it a crime to pressure an appraiser of falsify a home appraisal. Along with Senate Bill 203, this proposed law to stop foreclosure in Colorado recently moved out of the House Appropriations Committee to the full House.
The story also added how Colorado is not alone in trying to stop foreclosure. It detailed the efforts of Massachusetts Governor Deval Patrick, who recently proposed a foreclosure moratorium in the state. Specifically, Massachusetts regulators would ask lenders to refinance subprime loans that they are foreclosing on into fixed-rate loans on a case-by-case basis. Of course, you can follow the latest news and efforts to stop foreclosure throughout the United States at our very popular New Foreclosure Laws page.
Need to Stop Foreclosure in Denver, Colorado or Somewhere Else?
Foreclosure-Fighter was created to help people explore their options when hoping to stop foreclosure. So whether you're facing foreclosure in Colorado, North Carolina, Ohio, Iowa, Indiana, Washington or another state, you need to take action immediately before it's too late.
The best way to do is to get in touch with a local attorney as soon as possible by filling out the simple form on this page. Once you do this, we'll quickly get you in touch with an experienced attorney in your area who can assess your current financial situation and help you determine if refinancing, debt workout plans, Chapter 13 bankruptcy or other foreclosure options may help you stop foreclosure and keep your home. It's that easy and convenient at Foreclosure-Fighter!