Wednesday, May 6, 2009

Channel 7 on Foreclosures

More Coloradan's Mortgages Falling Behind
Officials Fear Growth Of Foreclosures

POSTED: 5:55 pm MDT April 29, 2009
UPDATED: 7:04 pm MDT April 29, 2009

DENVER -- State housing officials fear another boom in home foreclosures. The number of homeowners falling behind in their mortgage is growing.

According to the state, the current delinquency rate in Colorado is 4 percent. That is more than double what it was two years ago.

“The current situation is very flexible,” said Ryan McMaken, a representative with [CDH].

State housing officials said a number of Coloradans who haven’t made their mortgage payment in some time could soon face foreclosure since many lending institutions have ended a self-imposed moratorium.

“There are a decent number of borrowers who haven’t made payments in a while but they don’t register as foreclosures yet,” said McMaken.

Many banks and lending institutions instituted a moratorium on foreclosures as they waited to see what the Obama administration would do troubled homeowners. The best advice for anyone behind in their mortgage is to contact their bank immediately.

Don Childears with the Colorado Bankers Association said often times the banks are willing to work with their delinquent customers.

“A lot of borrowers are embarrassed often because they’re behind or delinquent and that will only make the situation worse,” said Childears.

Childears admitted it is in a bank or lenders best interest to work with their delinquent customers rather than go through with a foreclosure. A typical foreclosure costs a lending institution about $50,000. That accounts for a number of things including the home’s depreciation and the cost to sell it.

“That is an expense you’d like to avoid if you can,” said Childears. “Often the bank will work out a plan with that borrower.”