Hotline helps homeowners avoid foreclosure

DENVER - Officials with the Colorado Foreclosure Prevention Hotline say it has helped four out of five homeowners avoid foreclosure since it started taking calls three years ago and it is still helping people who are struggling.

When it began in 2006, the hotline received more than 3,000 calls in its first month. Since then, call volume has soared above 85,000 calls, averaging anywhere between 2,000 and 4,000 a month.

The Colorado Foreclosure Hotline has helped 13,000 Colorado homeowners avoid foreclosure in that time.

"We had no idea what to expect when the hotline began but we've seen the Colorado Foreclosure Hotline successfully help homeowners since the day the phone lines opened," Hotline Manager Stephanie Riggi said.

The hotline is a toll-free number that networks 27 HUD-approved housing counseling agencies across the state. Homeowners concerned about losing their home to foreclosure who call the toll-free number are routed to the agency nearest their property by entering their zip code.

The counseling does not end with a phone call. Hotline officials route the callers to agencies for face-to-face counseling and all services are free of charge.

"We do get a growing number of questions from homeowners about modifying their types of loans. We also get homeowners who are frightened and haven't been able to reach out to their mortgage companies. We are here to work with those homeowners and their lenders to help achieve a positive solution to their situation," Riggi said.

In a face-to-face counseling session, borrowers learn about the foreclosure process and important deadlines; review their budget, loan product and hardship information with a counselor to determine what workout option is best suited for their situation; and communicate with their lender alongside their housing counselor.

"In some situations not all homeowners understand their financial budget and housing counselors are able to review their budgets and drive them in the right direction to altogether avoiding a foreclosure," Riggi said.

Workout options include loan modifications, refinancing, repayment plans and pre-foreclosure sales and short sales.

Riggi says although the credit market is tight, mortgage companies are working with homeowners.

"Mortgage companies are working everyday to modify loans and are becoming more creative in the types of modifications they are providing," she said.

For more information on the Colorado Foreclosure Hotline and help avoiding foreclosure, contact the agency using the information below.

Colorado Foreclosure Hotline 877-601-HOPE
http://www.coloradoforeclosurehotline.org/