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Grant to help in fight against foreclosures

By John Rebchook, Rocky Mountain News (Contact)

Published March 6, 2008 at 12:05 a.m.

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A new $1.5 million federal grant will help Brothers Redevelopment and other counseling agencies keep another 1,700 people in Colorado out of foreclosure each year.

"We hope it is as much as 2,500," said Zachary Urban, of the nonprofit Brothers, which operates the Colorado Foreclosure Hotline, 1-877-601-HOPE.

The Colorado Housing Finance Authority was awarded the grant to expand foreclosure counseling across the state. The $1.5 million is being distributed to 12 agencies to hire and train additional counselors.

Urban said his group will receive the biggest part of the grant, though he doesn't know exactly how much. The money will allow Brothers to double the its number of counselors to 12, he said.

Data show that nearly 117,255 subprime loans are outstanding in Colorado, representing a $15 billion risk. People with high-interest, subprime loans are far more likely to lose their homes in foreclosures than people with safer fixed-rate loans.

The grant from the National Foreclosure Mitigation Counseling Program, which was approved by Congress as part of the 2008 Appropriations Bill, will give counselors the opportunity to meet more people directly, Urban said.

"We have been doing more telephone counseling than we would like because of the sheer number of calls," Urban said. "But we know that face-to-face counseling is more effective and reduces recidivism" among borrowers who fail to keep current on their mortgage payments.

Since the hotline was created in October 2006, more than 30,200 people have called, and more than 6,300 people "have had situations where we could work something out" with the lender, Urban said.

"The demand for well-qualified housing counselors has increased dramatically since the onset of the foreclosure crisis," Gov. Bill Ritter said in a statement. "With these award dollars, Colorado will be able to help thousands of homeowners at risk of foreclosure."

"Thanks to the hotline, there are at least 6,000 households out there that avoided foreclosure over the last 18 months," Kathi Williams, director of the Colorado Division of Housing and co-chair of the Colorado Foreclosure Prevention Task Force, said in a statement. "We did that on a budget of less than $800,000, and these new funds will allow the hotline to do a lot more."

In addition to Brothers, grant money is going to the Adams County Housing Authority, Boulder County Housing Authority, city of Aurora, Colorado Homeowner Assistance Project, Colorado Housing Assistance Corp., Douglas County Housing Partnership, Grand Valley Housing Initiative, Housing Solutions for the Southwest, Northeast Denver Housing, Southwest Improvement Council and Upper Arkansas Area Council of Government.

"CHFA is pleased that these dollars will help the hotline and the network of counselors throughout the state continue their good work," said Milroy Alexander, executive director and CEO of the Colorado Housing Finance Authority. "CHFA previously committed $50,000 to the hotline to expand its outreach into rural areas. As a condition of the award, CHFA will match the grant with a $200,800 contribution."

rebchookj@RockyMountainNews.com or 303-954-5207

Comments

  • February 18, 2009

    11:50 p.m.

    Suggest removal

    agentozzie writes:

    Its more a question then a comment. Where do I go to get help with getting a grant to help me from going to foreclosure. No one seems to want to help. My mortgage is not a fix rate.I filled bankruptcy every where I have tried they can't help.