Colorado Foreclosure Mediation
Vital Information About Colorado Foreclosure Mediation
As of July 1, 2010, Colorado Foreclosure Mediation law requires that mortgage lenders and providers to pay more attention to responsive homeowners facing possible foreclosure. The initiative of the law is to ensure homeowners who are in distress receive financial relief via loan modifications as long as they quality for modifications or find other foreclosure alternatives. The law gives property holders the chance to meet with a bank/lender to guarantee that foreclosure options have been acknowledged and looked over properly. Given the complexities of your situation, it is important that you consult with an experienced Denver Foreclosure Lawyer.
Mediation solves problems or misunderstandings outside a courtroom. Both sides will come together and meet with a neutral third party who attempts to help negotiate a reasonable solution. Colorado Foreclosure Mediation helps create an environment in which lenders and homeowners can come together and negotiate a fair and reasonable assessment of the situation. During mediation, different options other than foreclosure may be discussed.
When a lender notifies a homeowner of possible mortgage foreclosure, the lender must also provide additional information and options that do not result in foreclosure. This should include information about modification programs that are lender-specific, and assistance from government and non-profit organizations.
In a situation where a homeowner completes a loan modification application and returns it, the lender must clearly and thoroughly review the request and make a decision prior to proceeding with the next step in foreclosure. If a lender decides to take the next in the foreclosure process and proceeds with the court system, they are required to inform the homeowner and send a “Request for Mediation” form.
Property holders should make sure to get in touch with their lender if a foreclosure has commenced. A timely response to any application for a loan modification program request or alternative plan is imperative.
The mortgage holder has the right to request proper mediation once the lender moves ahead with foreclosure through the court. Mortgage holders are given 25 days to complete and record a “Request for Colorado Foreclosure Mediation” with the court. It is mandatory that mortgage holders pay a $50.00 fee that is non-refundable when they record a request for mediation.
Source: CO Department of Labor, Licensing, and Regulation