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HUD chief to address foreclosure forum

By John Rebchook, Rocky Mountain News (Contact)

Published March 17, 2008 at 9:08 a.m.
Updated March 17, 2008 at 9:34 a.m.

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The head of HUD is scheduled to be in Denver on Tuesday as a keynote speaker at the "Stop Foreclosure Now!" free forum that starts at 6:30 p.m. at Invesco Field at Mile High.

Alphonso Jackson, secretary of the U.S. Department of Housing and Urban Development, will address what can be done to help the record number of homeowners in foreclosure in the Denver area and Colorado, officials said.

"He will help to get the word out about the resources that are out here," said John Carson, regional director for HUD's Region VIII office, which has its headquarters in Denver.

"There are a lot of options if you get into contact with your lender early in the process," Carson said.

Ben Johnson, director of the Homeownership Center for HUD in Denver, said Johnson also has heard about the Colorado Foreclosure Hotline (1-877-601-HOPE) and wants to learn more about it firsthand.

"He's heard an awful lot about the Colorado Foreclosure Hotline," Johnson said. "It's getting a lot of national attention."

Jackson also is expected to publicize the new temporary increases in loan limits for Federal Housing Administration-insured loans. The FHA is part of HUD.

In the Denver area, the loan limit has been raised to a maximum of $406,250 for a single-family house, according to a HUD Web site, almost 32 pecent higher than the previous limit of $308,370.

In mountain communities - such as Summit, Eagle and Pitkin counties, where homes are more expensive - limits have been raised to the maximum ceiling of $729,750.

Peter Lansing, president of Univesal Lending, said the higher limits in the Denver area will help the local real estate market.

He said that FHA-insured loans require lower downpayments than most conventional loans.

"I don't think we need to raise it higher," Lansing said. "In the Denver area, most of the foreclosure problems are not happening in homes priced at $400,000 or more. I think it is at the appropriate level."

In addition to Jackson, Mayor John Hickenlooper is scheduled to speak. And more than 50 counselors will be on hand to give advice, as well as a number of lenders.

Invesco Field was chosen because it has a central location that many people are familiar with, a big conference room and ample parking.

HUD already has sponsored about a dozen forums across the state. They have drawn anywhere from five to 150 people.

This one has the potential to be the biggest by far, HUD officials said.

On Friday, Jackson announced that HUD, for the first time, is proposing that mortgage lenders and brokers provide home buyers with a standard good faith estimate.

An economic analysis by HUD said that if consumers had clearer, more certain cost estimates, the average borrower could save almost $700.

"A lot of the mortgage problems we see today are directly related to the fact that few people fully understand this process," Jackson said in a statement. "Buying a home can be very intimidating. Consumers have had no assurance that the loan terms and closing costs they are offered will reflect what they confront at the settlement table, and that's been one of the factors driving the current housing downturn. Our proposal fixes that. We owe it to the American home buyer to give them the information they need to make smart choices."

Comments

  • April 10, 2008

    4:02 p.m.

    Suggest removal

    nordend writes:

    I couldn't agree more but the market is still falling as the numerous articles I posted at http://www.business-foreclosure.com/ prove.
    But for serious people who want to keep the home they have they should find solutions by taking fixed rates mortgages and eventually on longer periods. Solutions can also include renting a part of your house.

    David Norden