News & Media

More relief for foreclosures sought at State Capitol

January 22, 2012  |  Colorado News Agency  |  Link to article

State lawmakers gathered today on the doorstep of a Denver resident to introduce two proposals aimed at creating more of a buffer for homeowners facing foreclosure proceedings.

Homeowner Sharon McKee said she and her husband Rick have been living in their home for 15 years and were always able to meet their obligations until the economy plummeted.  McKee once had a career as a bank officer but is now making $10 an hour, a wage that pales in comparison to her former salary.  McKee says she’s not looking for a handout but a helping hand.

“This is our home,” said McKee. “It represents our lives. My family will never again be on the upside of this economy—we need help.”

House Bill 1156, sponsored by Rep. Beth McCann, D-Denver, would require lenders to provide proof that they are entitled to foreclose on a given property by showing the chain of custody over the loan.

Another proposal, yet to be formally introduced, sponsored by Rep. Cristanta Duran, D-Denver, would require lenders to provide homeowners with information on  available resources for loan-modification programs.  Additionally, lenders would have to explain why a loan-modification application has been denied.

Duran says the intent of the measures is to reach out to responsible homeowners.

“There’s so many people who have been hit hard in this economy, and they should be given an opportunity to stay in their homes,” said Duran.  ”Homeowners are not looking for a handout, they are looking for solutions to foreclosure.”

Yet, Rep. Chris Holbert, R-Parker says homeowners are already afforded the opportunity to cure their debt through the foreclosure hotline set up by legislation in 2006, rendering the new proposals duplicative while adding another layer of busy-work for lenders and trial attorneys.

“Homeowners won’t win—trial lawyers win,” said Holbert. “This is a problem that has already been solved by the hotline, whose counselors don’t need the process to be longer and more complicated. We don’t need the state to be more involved and for there to be more laws.”

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