The Denver Post recently reported that Colorado will “receive $204.6 million as part of a $25 billion deal that states have reached with the nation’s biggest mortgage lenders over foreclosure abuses that occurred after the housing bubble burst.”
In addition to the financial settlement, banks will be required to “stop the use of robo-signing, end the process of dual tracking of loans, provide a single point of contact for customers as they move through the loan-modification process and abide by deadlines for loan modifications.”
The Post reports that “Colorado will get:
● $73.3 million to grant principal reductions on loans to make modifications possible.
● $52.5 million in cash to the state.
● $46.3 million in refinancing benefits to underwater borrowers.
● $32.49 million in payments to homeowners who lost their homes to foreclosure between January 1, 2008, and December 31, 2011.”
Will the foreclosure relief funds ultimately assist HOAs with owners who are either in the midst of a public trustee foreclosure or at risk of foreclosure? Will the loan modifications and refinancing benefits provide much needed financial assistance to owners who are behind on their assessments? Will the state be able to quickly get these funds into the hands of homeowners who need help now? Only time will tell . . .