Colorado Says No to Foreclosure-Prevention Bill

Every Republican on a Colorado House committee voted no last week to a bill that was to provide housing counseling and foreclosure-prevention services to families trying to hold on to their homes; while at the nation's capital mortgage servicers agreed to do better by homeowners facing foreclosure across the nation.

The rejection of the bill "sends a pretty clear message to Colorado's families: We know you're struggling, and, frankly, we don't care," said the bill's main sponsor, Representative Angela Williams (D-Denver).

The now-dead bill, which previously had received bipartisan support in two other committees, sought to charge lenders a $250 surcharge for each foreclosure filed at the county courthouse. The money was to go into a foreclosure-prevention counseling fund to pay for initiatives at local housing counseling agencies approved by the Department of Housing and Urban Development.

Other states propose similar bills; different fees

The Colorado bill is not unlike others proposed in other states, except it was criticized for being a paltry fee. In California Bob Blumenfield (D-San Fernando Valley) introduced a bill in February that would require mortgage servicers to pay $20,000 to local communities for each foreclosure proceeding it files. The California bill's aim is to mitigate the effects of lost property tax dollars from foreclosures by funding public education, local police and fire departments and redevelopment programs. If approved, the proposal would rake in about $10 billion for the state in two years.

"Bankers need an incentive to keep families in their homes," Blumenfield said in a statement to the Union-Tribune last week. "They helped create the foreclosure crisis by making bad loans and must bear some burden in solving this problem."

A similar 2008 New Jersey bill asked lenders to pay $2,000 to the state to help pay for housing counselors assisting borrowers with workout arrangements. What some would consider to be even wimpier than Colorado, North Carolina last year introduced a bill with a charge to servicers of $75. The low fee was meant to fund the state's Home Foreclosure Prevent Trust Fund, which was to, in part, provide $3.4 million in grants to reimburse nonprofit housing counseling agencies.

Mortgage servicers reach nationwide agreement

In related news affecting homeowners across the nation, the top mortgage servicers reportedly have agreed on changes to their foreclosure procedures, reported The New York Times. By the end of this week they will supposedly sign a deal agreeing to the following:
•They will be required to have more layers of oversight and proper training of their foreclosure staff.
•The oversight will extend to third party groups, including the law firms that do much of the actual work of eviction.
•They will provide a single point of contact with the servicer to each homeowner in default
•The servicers will no longer foreclose while borrowers are pursuing a loan modification that might allow them to stay in their homes.
•Servicers will hire an independent consultant to review foreclosures done over the last two years
•If owners were improperly foreclosed on or paid excessive fees, they will be compensated.

JPMorgan Chase Chief Executive Jamie Dimon said, "Some of the mistakes [servicers made] were egregious, and they're embarrassing," reported Bloomberg News. "But we made a mistake, and we're going to pay for that mistake."



Sheree R. Curry
, who has owned three homes but never went into foreclosure, is a three-time award-winning journalist who has covered real estate for six years. During her 20-year career, her articles have appeared regularly in the
Wall Street Journal, TV Week, and Fortune. She's been writing for AOL Real Estate since 2009 from a Minneapolis-area rental. She seeks a book publisher -- or at least a lender who'll give a reasonable mortgage rate to a self-employed mom.

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syl1969

Typical of Republicans - always out to kill the middle class struggling families. They need to make a trip to see the wizard and get a heart!

April 11 2011 at 10:36 PM Report abuse +1 rate up rate down Reply
billyboy

It has and will always be a mystery to me, why ppl. will not research and study before they vote lol. I cannot understand why some or most ppl. will vote against their own self interest lol. It does not take a lot of thinking to see most of the problem solving on most issues are way off base, whether they be from dems or repubs. At least i can see some common sense in they way dems try. As long as some of you want to protect the wealthy and corp. welfare and continue to protect the tax protection for the upper class, you will continue the fall backwards lol. How is that working for you lol? Silly ppl. lol.

April 11 2011 at 7:59 PM Report abuse +1 rate up rate down Reply
thdpkr01

All homeowners facing foreclosure should have an attorney. The attorney should ask the foreclosing company to prove standing. In most cases, they can NOT.

Why, you ask? Because the chain of title was broken if it was entered in the MERS system. The MERS ( Mortgage Electronic Registration System ) was put together by a consortium of lenders to stiff counties out of filing fees, and enable MERS to "securitize" slices of many mortgages.

Yes, it IS possible to reacquire a home that was improperly foreclosed. Get an attorney & do some basic research.

April 11 2011 at 7:51 PM Report abuse +2 rate up rate down Reply
drbracket

Could it be any clearer ? If you earn an 8 digit salary republicans are going to help you if you earn less they are going to hurt you

April 11 2011 at 7:51 PM Report abuse +1 rate up rate down Reply
peach2man

Why is it allways the republicans blocking unemployment insurance, foreclosure help, tax cuts for the middle class, workers rights, epa rules, social security, medicare. But want tax cuts for millionaires, corporations who relocate overseas, who votes for these people.

April 11 2011 at 7:41 PM Report abuse +3 rate up rate down Reply
1 reply to peach2man's comment
syl1969

Idiots

April 11 2011 at 10:37 PM Report abuse rate up rate down Reply
rjohn2806

they don,t care about you they got their, health ,care retire, pension ,what the hell do they care about you,re problems

April 11 2011 at 7:37 PM Report abuse +5 rate up rate down Reply
L R Adams

We continue to be preoccupied with housing. If you have a place to live and money to spend you need to sing the song* Don*t worry be happy*. Let the banks and lending institutions suck it up. They helped create this boondoggle and they should pay dearly for getting us to this point. Owning a house is not happiness*. Keeping a family together and living a life you can afford and having a little money left over for your family or yourself is happiness.
When they are standing at the grave site they are not going to say* he really had a nice house*. You want them to say *he really enjoyed life and took care of his family and was a good person.

April 11 2011 at 7:30 PM Report abuse +4 rate up rate down Reply
1 reply to L R Adams's comment
Michael DeMeo

you said it all !

April 11 2011 at 7:43 PM Report abuse +2 rate up rate down Reply
zorcof

If your working and trying to hang on to your house the government won't help you at all. But if your fat, dumb and lazy, you can get all the help you need from this government.

April 11 2011 at 7:30 PM Report abuse -2 rate up rate down Reply
1 reply to zorcof's comment
syl1969

Get alot of help, do you?

April 11 2011 at 10:41 PM Report abuse +1 rate up rate down Reply
HANLON'S

Basically the republicans are voting against legislation, laws, regulation on or for the banking, morgage industry. There are alot of families just hangin on. If they can just keep hangin on, this mess will turn around.
For those at the end of the rope, there are other venues. If ones bank simply can not or will not help depressurize the end of the month hell note, then there is chapter 7 or 11 bankruptcy finanancially ruined, take either or, get a fresh start, do some soul searching, never let it happen again, and come back like gang busters. These banks are going to have to sell these houses at some point and time to somebody. Just because one has been foreclosed on does'nt mean one could'nt get into another house in a couple years at a more reasonable cost and become whole again. What Miss Angelina Williams said was unprofessional,
her bill is short sighted, and most certainly does not address the foreclosure problem. Why does' nt she introduce legislation that deals with an overbearing EPA. This particular entity is killing us. Our fuel costs are out of line. Products and services are tied to fuel. Just the fact that we are paying two bucks a gallon, to much. Anyway, All I have to say is Jobs dummy Jobs. This Miss Angelina Williams should be part of the solution not a high pitched childish annoying whining baby.

April 11 2011 at 7:26 PM Report abuse +2 rate up rate down Reply
1 reply to HANLON'S's comment
peach2man

High fuel costs are caused by speculators, the nations selling crude do not make the money , they get a few more dollars per barrel.

April 11 2011 at 7:46 PM Report abuse rate up rate down Reply
jyban

What a load of dog doodoo! Just like the last government promise of help and interceding with the thieving banks, this will fall on it's face too. There is so much BS coming out of DC it is raising the global warming index by factors of 10 or more. Politicians are owned by the banks like the thieving Chase bank. You want to see what got us in this mess? Watch "Inside Job"....a recent award winning documentary on how our government sold us out to the banks.

April 11 2011 at 7:12 PM Report abuse +2 rate up rate down Reply