Colorado distributes money from foreclosure settlement

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Colorado has completed arrangements to distribute all the $51.17 million it received under the multistate settlement with the country’s five largest banks, said Attorney General John Suthers.

The settlement fund was used statewide for homeowner relief and foreclosure-prevention programs. In the last two weeks, the state has finished distributing most of the money.

“Seven months into the settlement process, Colorado is a great example of government working together to find creative solutions to the housing crisis,” said Suthers. “Gov. (John) Hickenlooper and representatives from the General Assembly supported a collaborative process that is delivering meaningful relief.”

Hickenlooper said the money was spent in a “collaborative way.”

“Our solutions are helping Coloradans stay in their homes and are preventing future foreclosures,” Hickenlooper said.

Colorado allocated its $51.17 million to a series of programs and organizations to provide statewide foreclosure and housing relief over the next three years:

• $24 million for supplemental loan-modification programs;

• $18.196 million for affordable housing programs;

• $5.625 million for housing counseling through the state;

• $1.5 million for Colorado Legal Services;

• $750,000 for temporary staffing at the Attorney General’s Office;

• $600,000 for the Colorado Foreclosure Hotline; and,

• $500,000 for marketing and outreach efforts.

Consumers interested in learning more about the multistate agreement may visit www.NationalMortgageSettlement.com or www.coloradoattorneygeneral.gov/mortgagesettlement.

If consumers believe they have been affected by the banks’ problematic processes or have experienced any form of foreclosure fraud, they may file a complaint at www.coloradoattorneygeneral.gov/complaint. To learn more about Colorado’s ongoing fight against mortgage and foreclosure fraud, visit the Office of the Attorney General’s Mortgage Fraud Information Center.

Homeowners facing foreclosure also should contact the Colorado Foreclosure Hotline at 1-877-601-4673 or visit www.coloradoforeclosurehotline.org. The free hotline works with homeowners in or facing foreclosure. Homeowners who call the hotline can speak with a housing counselor about their options.

 

One Response to Colorado distributes money from foreclosure settlement

  1. The foreclosure hotline sure received a lot of money from yet another lawsuit. Just wondered if you happened to call them to see what kind of help they can provide? Well I have, they simply refer you to HUD.

    Bottom line there isn’t really any help to the homeowners trying to get a modification and hold the mortgage company’s feet to the fire to follow HAMP rules and programs with the federal funds they received for that purpose.

    I also applied to the bank settlement for help through the mortgage company that I qualified for, 3 months ago and haven’t heard anything yet….

    So Congratulations on the bank settlement Mr state attorney, everyone seems to benefit except the homeowner who is left to deal mortgage company on their own because the help you are providing is an epic fail. Glad you made out so well though. I’ll try to come back with an update.

    Debbie
    October 22, 2012 at 5:13 am