Have you been contacted by a loan modification company?

November 29, 2010

From the Colorado Attorney General’s Office:

Consumers facing foreclosure might be tempted to retain the services of a loan modification company to help them to obtain more favorable terms on their loan. Before doing so, the Office of the Attorney General encourages consumers to bear in mind several facts about Colorado law and the fact that they may be able to accomplish a modification without hiring anyone.

When dealing with a loan modification company remember:

* Before retaining an outside company or firm to attempt to modify your home loan, Colorado consumers are advised they should first obtain free help from the Colorado Foreclosure Hotline at 1-877-601-HOPE (4673). For more information on the hotline, visit their Web site at www.coloradoforeclosurehotline.org.

* It is illegal in Colorado for a loan modification or renegotiation company to charge you an upfront fee if you are more than 30 days behind on your mortgage. Ongoing or monthly service charges also are forbidden under Colorado law. These companies can only charge you once their services are completed.

* Never stop making your monthly payments. Consumers who do so could find themselves in foreclosure.

* Do not ignore communication from your lender. Most lenders have loan modification programs that can help you save your home. In some cases, all a borrower needs to do is call the lender and provide some current financial information.

* Beware of any advice from a loan modification company urging you not to contact your lender.

* If any company promised they will get rid of your debt, they are making a promise they cannot keep.

* Check out any loan modification company you are considering hiring. The Better Business Bureau maintains ratings of businesses. Any company with an “F” rating should be avoided.

To file a complaint against a loan modification company, visit https://www.coloradoattorneygeneral.gov/departments/consumer_protection/file_consumer_complaint.


Do You Understand the Colorado Foreclosure Process?

November 8, 2010

From the Colorado Foreclosure Hotline

Typically, a borrower must be three or more months delinquent on payments before entering the foreclosure process. This is the pre-foreclosure time period in which a mortgage company and its legal department will send warnings and possibly “intent to foreclose” letters.

After three months of missed payments, the mortgage company will file a Notice of Election and Demand (NED) with the public trustee from the respective county. This notice is sent to the homeowner, marking the beginning of the official foreclosure process. The NED will contain information about the foreclosing attorney, who represents the mortgage company, as well as the public auction sale date set for the property.

Following the NED, a homeowner will receive notice of a Rule 120 hearing with the district county court. This hearing determines a mortgage company’s legal right to initiate the foreclosure process on a delinquent loan. This is also the cure period for the mortgage, during which a homeowner must submit an “intent to cure” notice with the public trustee.

To cure the loan, all sums due must be paid to the public trustee via certified funds no later than noon on the day before the public auction. If no intent to cure or workout is reached before this time, the property will go to sale.

Following the public auction, the homeowner will be evicted from the property. There is no longer a redemption period in the state of Colorado, and the homeowner should prepare to leave the property at the time of the sale.


HOTLINE FOR MORTGAGE HELP

October 19, 2010

RMPBS will host a Mortgage Crisis/Loan Scam Prevention phone bank on Monday, Oct. 25 from 4-6:30pm, in partnership with the Colorado Foreclosure Hotline and 9News, offering Coloradans critical information from HUD-approved housing counselors on how to avoid loan scams and prevent foreclosure.

Call 877-667-6727 to reach the phone bank on Oct. 25. For assistance before and after our Oct. 25 phone bank, the Colorado Foreclosure Hotline is always available at 877-601-HOPE.


Avoiding Foreclosure: When a Lender Won’t Work With You

October 18, 2010

From the U.S. Dept. of Housing and Urban Development

You’ve done all your homework, explored workout options, talked to a housing counselor and tried to talk to your lender. But the lender won’t work with you. What do you do now?

For an FHA-insured loan
Your lender has to follow FHA servicing guidelines and regulations for FHA-insured loans. If your lender is not cooperative, contact FHA’s National Servicing Center toll free at (888) 297-8685, or via e-mail (hsg-lossmit@hud.gov). Whether by phone or email, be prepared to provide the full name(s) of all persons listed on the mortgage loan and the full address of the property including city, state and zip. We may be able to help you more quickly if you can also provide your 13-digit FHA case number from the loan settlement statement.

For a VA-insured loan
First, visit the VA Foreclosure Alternatives page. If you need assistance or have additional questions, talk to a Loan Service Representative.

For conventional loans
If you have a conventional loan, call the Colorado Foreclosure Hotline at 1- 877- 601- HOPE or contact a HUD-approved housing counselor at (800) 569-4287. They may be able to help you with your lender.