When the Colorado Foreclosure Hotline started in October 2006, backers thought it might run its course after 18 months.
With that period now passed, the hotline at 877-601-4673 is handling more calls than ever as both public awareness and public desperation surge.
Call volume this year is on track to outpace last year’s 20,363 calls by about 60 percent, with no signs of abating, according to Ryan McMaken, a spokesman for the Colorado Division of Housing.
The bad news — more people than ever are desperate for a way out of mortgages they can no longer afford and are unable to refinance.
The good news — a larger share of callers, almost a third, sought help last year before they fell behind on payments, leaving them more options, according to a report of hotline activity in 2007.
About one out of four calls leads to a face-to-face meeting with a housing counselor, said Zachary Urban, head of housing counseling at Brothers Redevelopment in Denver.
When that happens, chances are high borrowers will find a solution that keeps them in their homes, he said.
In an increasingly popular option, about 14 percent of home owners sold their property for below the amount owed before losing their homes in a forced sale.
Lenders modified about 8 percent of mortgages and offered repayment plans for overdue balances to a similar number.
About 9 percent of those seeking counseling were able to get caught up.
About 10 percent of those who called the hotline in the fourth quarter lost their home in foreclosure, and another 11 percent sought bankruptcy protection, which can delay, but not prevent, the loss of a home.
Not calling in as much were residents of hard-hit northeast and southwest Denver neighborhoods, home to higher concentrations of Latino and African-American neighborhoods.
Notices about the hotline appeared in Spanish-language media and there are 10 Spanish-speaking counselors, but only about 100 callers to the hotline were Spanish speakers in the fourth quarter.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
Who’s in trouble
About 70 percent of the calls to the Colorado Foreclosure Hotline came from five ZIP codes:
80229 (Adams County) 23%
80022 (Commerce City) 15%
80015 (Aurora) 15%
80104 (Castle Rock) 9%
80233 (Adams County) 8%
