FreeDIYkits Loan Modification Blog

By Jeff Stahla
Loveland Reporter-Herald

The first wave of foreclosures in Northern Colorado struck people who were in bad mortgage products: subprime mortgages and adjustable-rate loans that buyers couldn’t pay even if they still had jobs.The next wave is hitting now, according to officials from agencies who help people facing foreclosure.

Those homeowners are falling behind for other reasons — they have lost their jobs, or the jobs they depended on when they received their mortgages are producing far less income.

Lending officials and organizations that can help homeowners facing the prospect of foreclosure held an open house of sorts Saturday at The Ranch, offering counseling to those who see trouble ahead in their financial future.

“Getting lenders here was key,” said Sara Gilbert, executive director of Consumer Credit Counseling in Fort Collins.

She said the number of clients served by her agency has increased by 33 percent in the past year, and she sees that second wave of foreclosures holding steady, at least.

By noon, about 40 property owners had taken advantage of the resources available to help forestall foreclosure, and another group had learned more about programs that can help homeownership.

Among the sponsors for the event was the Colorado Division of Housing, which also is a sponsor of the Colorado Foreclosure Hotline.

Ryan McMakin, communications specialist for the agency, said the foreclosure crisis is now starting to hit counties smaller than Larimer, such as Morgan and Teller counties, which will lead to higher numbers being announced soon.

“Statewide it’s going to be a big quarter (for foreclosures),” he said.

Article Source: http://www.reporterherald.com/news_story.asp?id=25731