Foreclosure Town Hall Meeting

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Foreclosure Town Hall Meeting

• Welcome!

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Brought to you by the following Partners

• United States Department of Housing and Urban
  Development
• Federal Housing Administration
• City and County of Denver
• City of Aurora
• Adams County Housing Authority
• Northeast Denver Housing Center
• Brothers Redevelopment, Inc.
• Colorado Housing Counseling Coalition
• Wells Fargo Bank

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Purpose of Todays Meeting

• EDUCATE DENVER AREA HOMEOWNERS ABOUT FORECLOSURE
  PREVENTION
• SHARE RESOURCES OF HOW TO AVOID FORECLOSURE
• ANSWER QUESTIONS ABOUT THE FORECLOSURE PROCESS
• MEET YOUR LOCAL HOUSING COUNSELOR
• FORECLOSURES AFFECT EVERYONE!

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Agenda

• Welcome and Introduction
• Overview and Statistics about Foreclosure
• Colorado Foreclosure Timeline
• What is a Housing Counselor?
• Options to Avoid Foreclosure
• Loss Mitigation? What is it?
• Community Impacts of Foreclosure

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Welcome and Introduction

• John Carson, Regional Director
• U. S. Department of Housing and Urban
  Development
• Kathi Williams, Director
• Colorado Division of Housing

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Overview and Statistics

• Denver Metro Foreclosures
• Ryan McMaken

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Foreclosures in Denver

• Foreclosures statewide
• 2003 11,801
• 2004 14,140
• 2005 22,279
• 2006 28,220

• City and County of Denvers statistics
• 2003 2,500
• 2004 - 3,351
• 2005 3,713
• 2006 5,162
• 2007 Foreclosures expected to increase 30

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Foreclosure Totals

• 31 increase between 2005 and 2006
• 110 increase since 2003
• Were projecting a 25 increase from 2006 to 2007
• Primarily a problem of the Front Range counties
  due to large supply of housing.

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2006 Foreclosure Totals
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COLORADO FORECLOSURE TIMELINE

• Zachary Urban,
• Director of Housing Counseling
• Brothers Redevelopment

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Colorado Foreclosure Process
Percentage of people in the process
100
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4
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Aug. 1st
Sep. 1st
Oct. 1st
Nov. 1st
Dec. 1st
Jan. 1st
Feb. 1st
Mar. 1st
Apr. 15th
Notice of Election and Demand Intent to Foreclose
75 Day Redemption Period
Sheriffs Eviction
Payment Due
30 Days Late
60 Days Late
90 Days Late
Rule 120 Hearing
Sale Date
General Servicing
Collections
Loss Mitigation
Foreclosure
Real Estate Owned
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New Foreclosure ProcessJanuary 1, 2008
Aug. 1st
Sep. 1st
Oct. 1st
Nov. 1st
Dec. 1st
Jan. 1st
Feb. 1st
Mar. 1st
Apr. 15th
Notice of Election and Demand Intent to Foreclose
Sale Date
Payment Due
30 Days Late
60 Days Late
90 Days Late
Rule 120 Hearing
General Servicing
Collections
Loss Mitigation
General Servicing
Collections
Loss Mitigation
Foreclosure
REO
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WHAT IS A HOUSING COUNSELOR?
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What is a Housing Counselor?

• Economic Worker v. Social Worker
• Mediator, Educator, and Negotiator
• Goals
• To Increase and Preserve Homeownership
• To Protect Consumers Against Fraud
• To Promote Economic Development
• To Help People Set/Meet Financial Goals
• To Increase Financial Literacy

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Homeownership Preservation

• Mortgage Default Dilemma
• Make the Scheduled Payment
• Refinance the Mortgage
• Sell the Property
• Temporarily Suspend Payments
• Stop Payments Completely

Quercia and Stegman (1992).
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Counseling Effects on Homeownership

• Encourages those who may have never thought
  homeownership was possible
• Education on Homeownership increases buying power
  and financial confidence
• Discourages those for whom homeownership is not
  appropriate
• Increases accuracy of suitable loss mitigation
  efforts and other default workouts
• Long term relationships with clients increases
  likelihood of early intervention and smart
  decision making
• Protects consumers from discrimination and
  fraudulent activities

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Who do you talk with about foreclosure? Who to
Trust?
CALL YOUR LENDER
Call a Housing Counselor
CALL a REALTOR
Dont Talk with Door Knockers

• Call the Colorado Foreclosure Prevention Hotline
• 1-877-601-HOPE(4673)

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Options to Avoid Foreclosure and What is Loss
Mitigation

• Joe Ohayon
• Loss Mitigation
• Wells Fargo Home Mortgage