Colorado Foreclosures and Bank Tactics

A recent story on MSNBC detailed how foreclosures in Colorado and throughout the country are churned out using less-than-upstanding tactics by some of the country’s largest banks.

Colorado foreclosure attorneys read with interest this exclusive piece. It allowed an inside look at so-called “foreclosure factories” which provides a greater understanding of the process and underscores why it’s so important to have a skilled Colorado foreclosure attorney on your side in these matters.

A recent settlement by five of the largest banks and attorneys general from 49 states – including Colorado – granted $25 billion to alleviate the hardships caused by the real estate implosion resulting from unsavory tactics by financial institutions. A portion of that money is slated to go to individuals who were improperly foreclosed upon due to robosigning techniques and the banks not having the proper paperwork to ensure they even owned the property in question.

Part of that agreement was that they would alter their methods.

But this piece shows little has changed. At Wells-Fargo, which services nearly 18 percent of the nation’s residential mortgages, entry-level staffers are given the title of “vice president” and told they need to keep a quota of how many foreclosures they need to process in a given day. The average number they are expected to produce in an 8-hour shift is 10.

This is concerning because if you are currently in the midst of fighting a Colorado foreclosure, you know that the process involves an inordinate amount of paperwork. These “vice presidents” are made to sign off on statements swearing to have personal knowledge of certain facts of the case – facts that they are unlikely to know given the volume they churn out each day.

What’s more, employees of the bank, speaking on the condition of anonymity, have said borrowers who were seeking help in the form of loan modifications had sent reams of personal financial documents to the bank. Problem was, they were sent to fax machines that went weeks without being checked.

In some cases, the foreclosure process was kick-started when borrowers fell behind on miniscule payment amounts – sometimes as little as $2 on the interest.

Having an experienced Colorado foreclosure attorney walk you through the process is critical, given the type of practices that are continuing at these large banks.

Colorado Springs Foreclosures: Will Federal Agencies Reduce Mortgage Payments?

Those facing a Colorado Springs foreclosure will have to wait it out a few more weeks before it is revealed whether Freddie Mac and Fannie Mae mortgages rates will be reduced for underwater homeowners.

Our Colorado Springs foreclosure attorneys know that the possibility of losing  your home is nerve-wracking, not only for what it might mean in terms of your immediate future (i.e., where we will we live, will my kids have to change schools, etc.), but also your long-term credit.

We can help you sort through the details and determine your best option moving forward.

The question raised by a recent CNNMoney article was whether a principal mortgage reduction for some of the pair’s combined 3 million loans will actually help homeowners.

At first, the Federal Housing Administration had resisted taking this action, saying it would be too expensive for tax-payers, who ultimately fund them. But the calls to action have been renewed, following a $26 billion settlement between five major banks and attorneys general in 49 states that would lower principal mortgage payments for some 1 million homeowners whose loans aren’t backed by Freddie and Fannie.

Internal studies, however, had suggested that such a move would essentially equal a costly bailout for embattled homeowners – by already weary taxpayers.

Now, though, President Obama has offered three times the incentives if they will reduce their principal mortgage payments under the Home Affordable Mortgage Program, called HAMP. So now, the administration is taking another look to see if such a move would make financial sense.

While Fannie and Freddie-backed loans are about 3 million total, about 75 percent of those homeowners wouldn’t qualify because they have kept up on their payments. So ultimately, about 750,000 might be eligible for a reduction under the criteria. That’s a relatively small percentage, considering there are about 11 million underwater homeowners throughout the country.

The hope is that the move would ultimately reduce the number of foreclosures by helping to keep people in their homes. There’s a concern, though, that this move might encourage individuals to strategically default, in order to take advantage of the program.

While it remains to be seen what the federal mortgage giants will decide, contacting a Colorado Springs foreclosure defense attorney will help you figure out what your best options are.

Colorado Springs Foreclosure: What National Settlement Means for You

A multi-billion national settlement among 49 states’ attorneys general and five major banks will have implications for those who endured a Colorado Springs foreclosure.

Our Colorado Springs foreclosure attorneys have been closely following the news regarding the settlement, which aims to reduce the mortgage payments for those who are underwater on their homes, as well as grant monetary relief to those who may have been unjustly forced from their homes.

The settlement amounts to $26 billion in all. But what does it mean for you?

To understand this, we have to first look at what the loan servicers and mortgage lenders agreed to do. The servicers and banks essentially have pledged about $17 billion that will go toward decreasing mortgage payments for homeowners who owe a great deal more than their home is worth and who are behind on those payments. This is expected to equal out to about $20,000 of reduction for each homeowner. For those whose mortgages are held by Bank of America, those reductions could be even greater, equaling about $100,000 or possibly more.

Another thing that these entities agreed to do was refinance mortgages for homeowners who are up-to-date on their payments. This will allow them to clasp onto the low interest rates that are available right now.

Next, the banks have committed about $5 billion to the federal and state government. With that money, homeowners who were improperly forced from their homes will receive lump sum payments of between $1,500 and $2,000 – barely the cost for moving expenses, but certainly a start.

Another $1 billion is being paid to the Federal Housing Administration by Bank of America, the parent company of Countrywide Financial, which is alleged to have defrauded the federal housing agency.

The settlement also requires that banks get rid of their robo-signing techniques altogether. This was essentially a technique in which banks would churn out hundreds of foreclosure documents each day, often with agents having no verification of the facts to which they were attesting.

If your home was foreclosed upon between 2008 and 2011, you may be eligible to receive a payment, and you should notify your bank. The exact amount of the payment is going to depend on how  many people seize on it – and about 750,000 are expected to do so.

Colorado Foreclosure Decline: More to the Story

Recent media reports indicating that Colorado foreclosures are on the decline don’t tell the whole story.

Colorado foreclosure attorneys know there is much more to it, and many families continue to suffer as the result of greedy banks and careless politicians.

According to a story by Reporter Heather Draper of the Denver Business Journal, the urban counties in Colorado have seen a dip in the numbers of foreclosure sales and filings this past January, as compared to a year ago.

Draper cites the new figures released by the state’s division of housing, which reports that foreclosure filings have dropped nearly 30 percent since last year, from 2,699 in January 2011 to 1,939 this January. She also cites foreclosure auction sales, which dipped from 1,499 last January to 1,150 this January.

While all this might be true – and encouraging if it continues on this same slope – we must remember that this report is only comparing two, 30-day time frames. A 23 to 30 percent decrease sounds like a lot, but we’re not talking about this in terms of an entire year.

In truth, the housing crisis in which this country finds itself embroiled is far from over. And what many homeowners might not realize is that filing for bankruptcy can actually help by allowing the opportunity to shed their second and third mortgages on homes that are underwater anyway. Filing for bankruptcy will also halt the foreclosure process, and potentially give you and your family the opportunity to stay in your home, at least temporarily, until you can work with an attorney to determine the next step.

One misconception people have is that they have to be current on their mortgage payments in order to keep their home. This is not always true. A Colorado foreclosure attorney can help you sort through the legal mess.

According to the Journal, all counties except Broomfield showed a decrease in foreclosure auction sales. It’s important to note, however, that some of those counties saw only minimal slides, like Mesa County which reported a 2.5 percent decline. A percentage like that is within the margin of error, and therefore not definitive enough to say whether things are actually improving or not.

Foreclosure can be a complicated process, but with the help of an experienced attorney, it can be far less stressful.

Good News for Colorado Springs Foreclosure Victims

If Democratic state lawmakers are successful, the simple signature of a bank-employed attorney will no longer be enough to push through foreclosures in Colorado Springs or anywhere in Colorado.

A new bill targets a years-long practice in Colorado that unfairly skews the benefit toward large financial institutions. Under the current system, attorneys paid by banks are allowed to rubber stamp the bank’s right to pull a home out from underneath its owner – without having the proper mortgage documents to back it up. In the last few years, this has meant a windfall for bankers and led to a crisis whereby people were forcibly removed from their homes by a lender that may not have had the right to do so.

The problem started in 2006, with a change to state law that seemed to go largely unnoticed. It allowed banks to take a person’s home with scant evidence, aside from the signature of the bank’s attorney.

While the entire U.S. banking industry has come under scrutiny for less-than-savory practices throughout the housing bubble burst, our Colorado Springs foreclosure attorneys recognize that our state has not done nearly enough to protect homeowners.

The Denver Post reports that many banks are being scrutinized because for decades, lenders traded, bought and sold mortgages as securities. However, those deals were rarely recorded in property records. Then, when homeowners began getting notices of foreclosure, the paperwork originated from a bank they had never done business with. For many, the question of who actually owned the rights to the home loomed large. As Colorado homeowners tried to sort through a convoluted paper trail, banks easily claimed their own rights with the stroke of a pen.

Rep. Beth McCann of Denver, who is sponsoring the bill, told the Post that the integrity of the foreclosure process is at stake.

“This bill prevents a lawyer from saying a bank can foreclose simply on their say-so,” she told the paper. “That’s a huge presumption.”

Indeed.

Another aspect of the foreclosure process that HB12-115 addresses is how judges review individual cases. Right now, judges almost always approve auctions. The only thing a judge really analyzes in a case is whether the homeowner hasn’t paid and whether he or she is in the military. They don’t look at whether the bank or lender requesting the auction is actually authorized to do so.

It wasn’t always this way. A 1989 decision by the state’s supreme court gave Colorado homeowners the right to challenge a bank’s standing in a foreclosure proceeding. The 2006 legislation, however, overruled that right.

Steps to Reducing the Stress of Colorado Springs Bankruptcy, Debt, Foreclosure

With the economy continuing on a downward spiral, millions of people are battling debt, foreclosure and bankruptcy in Colorado Springs and across the country. For many people, the stress can be overwhelming.

Medical experts have long warned that stress is a major catalyst for a number of serious and potentially life-threatening physical ailments, including weight gain, heart disease, gum disease, gastrointestinal problems and more.

It’s a vicious cycle because the more stressed you are, the more your health suffers and the more you end up shelling out on health care – almost twice as much as someone who is carefree, according to researchers with the Health Enhancement Research Organization.

Many of the financial troubles you face can be addressed with help from an experienced Colorado bankruptcy attorney. Tackling your personal financial struggles with someone who has helped thousands of people in similar situations will not only augment the balance on your bank statements, it will also improve your well-being.

In addition to taking this crucial step to free yourself of these financial burdens, there are other steps you can take to alleviate these concerns.

First, seek help from your employer. According to a 2010 study by Buck Consultants, nearly three-quarters of all U.S. employers offer some form of wellness program, which encompass everything from discounted yoga classes to reimbursements for gym memberships. Stepping up your work-out routine will help to clear your mind and give you confidence to keep that same momentum in other aspects of your life.

If your company doesn’t offer this type of reimbursement, look on sites like Groupon or search for trial memberships that might give you a few weeks free. Many gyms also want new customers, so they may be willing to cut you a deal directly if you ask.

Secondly, consider talking with a counselor. Many employers offer free or reduced-cost access to counselors on a weekly or monthly basis. Some also offer group sessions, which specifically address techniques to manage stress.

And finally, take some time each day to breathe deeply. A recent study conducted by researchers at Harvard found that meditating each day improves a person’s memory and reduces stress. Even a few minutes a day can make a huge difference.

Colorado Foreclosures Down, Still Among the Top 10 in U.S.

Colorado foreclosure rates have dropped over the last year, but they are still among the highest in the country, according to a a recent report by the Denver Business Journal, which cited figures released by RealtyTrac.

The report outlines a nearly 30 percent decline in the number of foreclosures filed in 2010 compared to 2011. But still, our state is ranked 9th in the nation for the most foreclosures.

Our Colorado bankruptcy attorneys know that filing for bankruptcy can help you to stop a looming foreclosure of your home.

What many homeowners may not understand is that they don’t have to be current on their mortgages in order to save their home from foreclosure. Filing for a Chapter 13 bankruptcy in Colorado can allow you to pay your past-due debt over a 3 to 5-year period, rather than all upfront.

This is an option best-discussed with a legal expert with a great deal of experience, as well as the resources to challenge large banks, which often are more interested in their bottom dollar rather than keeping people in their homes.

The Journal’s report indicates that there were nearly 40,000 foreclosure filings last year – or one for every 56 housing properties in the state.

That’s a staggering figure.

Perhaps more encouraging is that in December, there were roughly 3,500 foreclosure filings, or an average of 1 property for every 620 – a 7 percent decline from November.

Nationally, the numbers appear to be falling at a faster clip. The Journal reported that there were 1.9 million properties foreclosed on across the country last year, representing a 34 percent drop from the year before and the lowest number of filings in five years.

But as RealtyTrac’s CEO told the Journal’s reporter, the dip in foreclosures likely has more to do with legal entanglements than an improved economy.

“Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year,” Moore told the publication.

He added that a lack of clarity with regard to much of the documentation, as well as legal issues that plague the foreclosure industry, means that the entire process is dysfunctional and inefficient.

Colorado Springs Foreclosure Numbers Dip, But Bankruptcy Can Still Help Distressed Homeowners

Foreclosure numbers in Colorado fell in 2011. But most experts believe this has less to do with the real estate market recovering and more to do with a delay in filings by the country’s biggest banks.

Some people believe they can fight back against banks by attempting to show that the bank filing the foreclosure doesn’t actually own the note. But our Colorado Springs bankruptcy lawyers believe there is another option that is more beneficial to Colorado Springs homeowners.

That option is filing for bankruptcy in Colorado Springs.

Did you know that filing for bankruptcy immediately stops a foreclosure? Whether your home has just received its first default notice or is slated to be sold at auction, filing for bankruptcy halts the process.

This can buy homeowners valuable time while they attempt to get their finances in order. Through the bankruptcy process, consumers can discharge their outstanding debt, such as from credit cards, medical bills and other loans, which can enable them to again make house payments.

Or, perhaps homeowners are currently in a house that has an underwater mortgage, meaning they are paying more on the loan than the house is worth. Many people are in that position. Filing for bankruptcy may allow the homeowner to get rid of their debt and their house after the foreclosure process has gone through.

The Denver Business Journal recently reported that Colorado saw a 28.6 percent dip in properties with foreclosure filings from 2010 to 2011, but the state still had one of the top 10 highest foreclosure rates nationwide, foreclosure tracking company RealtyTrac reported.

One out of every 56 houses had a foreclosure notice last year, totaling 38,557 properties. In December, one in every 620 properties went into foreclosure, a 7.29 percent drop from November.

Most analysts believe that foreclosure numbers dropped in 2011 because big banks in 2010 halted their foreclosure practices after investigators found out they were using “robo-signing” tactics and other unlawful means to take away people’s homes.

If you are struggling with debt and need to speak with an experienced Colorado Springs bankruptcy lawyer, contact attorney Stephen H. Swift at 866-893-2440 or 719-359-8179 for a free initial consultation.

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