Colorado’s portion of the $51.17 million Morgage Settlement is divided this way:
Colorado has decided to allocate its $51.17 million to a series of programs and organizations to provide statewide foreclosure and housing relief over the next three years:
- $24 million for supplemental loan-modification programs;
- $18.196 million for affordable housing programs;
- $5.625 million for housing counseling through the state;
- $1.5 million for Colorado Legal Services;
- $750,000 for temporary staffing at the Attorney General’s Office;
- $600,000 for the Colorado Foreclosure Hotline; and,
- $500,000 for marketing and outreach efforts.
The $24 million supplemental loan-modification funding will be divided into two programs. The first program will design pool insurance to facilitate a loan modification or a refinancing for borrowers in default on their loans. The second will provide cash assistance to defaulted borrowers in order to facilitate a loan modification or a refinancing. These two programs are designed to expand the benefits of the settlement to those borrowers who are generally not eligible for the principal reduction modifications that are available under the settlement or other modification programs.
The $18.196 million affordable housing programs, also administered by the Colorado Division of Housing, will be divided into two programs. The first will be used to stimulate the construction of affordable residential rental properties. The second fund will be used to provide greater housing for veterans at the Ft. Lyon facility in Bent County.
The $5.625 million for housing counseling support will be administered by the Colorado Housing Finance Authority, which administers similar programs and can ensure no double-dipping by counseling services. This allocation will provide ramp-up capital as well as a fee-for-service system for funding housing counseling services to Colorado homeowners.
The $1.5 million allocation for Colorado Legal Services, the state’s free legal aid program for low-income Coloradans, will provide representation for home owners for whom housing counseling or the other programs funded through the national settlement are not adequate. Colorado Legal Services will through this three-year fund be able to expand its staff to serve areas where foreclosures are on the rise, including the Western Slope, mountain communities, northern Colorado and southern Colorado.
The $600,000 award to the Colorado Foreclosure Hotline continues the Office of the Attorney General’s commitment to keeping the hotline operating as a free resource for Colorado homeowners facing foreclosure. This $600,000 award will fund the hotline’s operations through 2015.
See our other blog at: Original blog on the mortgage settlement fund
The followup blog talked about specific dollars and cents for a Highlands Ranch homeowner.
This is over 3 years, and our previous blog talked about $205 million. More to come.
To discuss more about this settlement and if it pertains to your situation, call me at 303-888-2488, or email us at mcgmhg@earthlink.net.
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