DENVER—State and federal officials on Monday recommended foreclosure counseling to homeowners hit hard by the mortgage foreclosure crisis following a study that showed some areas were targeted for risky, subprime loans.
Gov. Bill Ritter said 11,633 property owners in seven zip codes in Aurora, Colorado Springs, Denver, Greeley and Parker were in the first stages of foreclosure on properties worth $2.2 billion. The survey by the Colorado Housing and Finance Authority covered Nov. 27 to April 4.
Ritter proclaimed this week foreclosure prevention awareness week and said notices will be mailed to properties in those areas telling them their rights and the availability of free counseling from the state.
“Home ownership is a cornerstone in achieving the American Dream. Unfortunately, too many Coloradans are finding that piece of their dream slipping from their hands due to foreclosure,” Ritter said.
Ritter said the state set up a special telephone hot line for people in trouble.
Sen. Ken Salazar, D-Colo., said 80 percent of property owners in trouble were able to avoid foreclosure after they received counseling.
“The housing crisis is one of the root causes of our nation’s broader economic slowdown. All across Colorado and the nation, families are feeling the pain of the housing crisis and communities are being crippled by the ripple effect of foreclosures,” Salazar said.
He said about 50,000 more homes are expected to be in foreclosure by the end of the year and 750,000 other property owners will see their property values decline because of their neighbors.
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Eds: Affected zip codes include 80010 and 80017 in Aurora, 80916 in Colorado Springs, 80204 and 80239 in Denver, 80631 in Greeley and 80134 in Parker.
