When Colorado residents are struggling to meet financial challenges, any bit of help can go a long way. Whether from family or friends, or government programs, assistance to those deep in debt may help pave the road toward debt relief. At the very least, assistance can help stave off immediate threats like losing a home to foreclosure.
Some assistance may be on the way for Colorado homeowners, through two new programs handled by the Attorney General's Office. As discussed previously in this blog, a mortgage settlement was reached between major banks and state attorneys general around the country after the banks violated state and federal law.
Funds available from this settlement are now flowing through Colorado to help homeowners in a number of different housing programs. Part of these funds will support foreclosure prevention counseling, while other programs can help homeowners become current with their home mortgages through a $10,000 loan.
While programs like the above may help struggling homeowners prevent foreclosure, the programs may not be enough to help all who need it. For those who need further help, bankruptcy may be an option to put a temporary stop to foreclosure.
Even if the foreclosure is not stopped, a Chapter 7 bankruptcy can help homeowners obtain debt relief. Those who are behind on their home payments may see their homes liquidated. However, in Colorado, homeowners may keep up to $60,000 in equity in homestead property. Through Chapter 7 bankruptcy, homeowners can thus obtain a fresh financial start and begin anew.
Source: Canon City Daily Record, "Help available for homeowners facing foreclosure," Carie Canterbury, Mar. 15, 2013