Bill Assists Struggling Homeowners

Denver Post (04/14/08); Fender, Jessica
With an eye toward keeping borrowers in their homes, Colorado judges would have the power to halt foreclosure proceedings for 90 days to give mortgage lenders and homeowners more time to negotiate arrangements, under a bill state lawmakers plan to file this week. Banks also would be required to inform homeowners about mortgage counseling opportunities, such as the state-sponsored mortgage counseling hotline for homeowners, which has seen its success rate rise to as high as 80 percent. "It's better for the borrower, the lender and the people of Colorado if these people stay in their home," says Rep. Mark Ferrandino, D-Denver, a co-sponsor of the legislation. The sponsors say they are still holding discussions with banks in an effort to make the proposal more acceptable to them.