Debbie Benefield

The news lately is full of stories describing the incredible rise in foreclosure rates in Colorado and across the country. Concerned about this alarming trend, Representative Debbie Benefield recently hosted a town meeting designed to help Colorado residents learn why the foreclosure rate has increased and to provide hope and help for those facing foreclosure themselves. The panel consisted of representatives from the Colorado Division of Housing, the mortgage industry, CHFA and some non-profit organizations ready to help.

Many wonder how we got into this situation. The consensus appears to be that over the years, several factors have combined to cause the dramatic increase in foreclosure rates. In the 1990's the number of new homes built exceeded the number of families needing housing. Relatively new mortgage products were introduced including loans requiring no proof of income, adjustable rate loans and sub-prime loans. While the unemployment rate stayed low in Colorado, the quality and pay of these jobs have not kept up with rising costs of food, gas and other necessities.

Most importantly, what can homeowners facing possible foreclosure do? How can real families keep their homes or in the worst case, survive foreclosure and get back on their feet? The key is that homeowners seek help at the first sign of trouble, not waiting until they are a couple payments behind. The Colorado Foreclosure Hotline, 1-877-601-HOPE, provides FREE advice and  connects homeowners with trained professional housing counselors. The counselors explain options to homeowners and work with the borrower and the lender to avoid foreclosure.

Another crucial ingredient in solving this problem is prevention. The purchase of a home is the most significant investment most Colorado residents make in their lifetime. There are so many lenders and so many types of loan products today; choosing one can be truly difficult. The Colorado Division of Housing provides a free interactive website on the basics of home ownership.  Homebuyers are urged to visit this website before they begin shopping for a home.

Upcoming town meetings hosted by Representative Benefield will address rising energy costs and other topics of concern for Coloradans.