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U.S.
Senator Member: Finance, Agriculture, Energy, Ethics and Aging Committees |
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For Immediate
Release Tuesday, April 08, 2008 |
CONTACT:Stephanie Valencia – 202-494-8790 |
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| Sen. Salazar Introduces Amendment to Housing Bill to Bolster Existing Foreclosure Prevention Hotlines
WASHINGTON, DC - This week, the United States Senate continues debate on the Foreclosure Prevention Act of 2008, which will keep families facing foreclosure in their homes, help other families avoid foreclosures in the future and help communities already harmed by foreclosure to recover. Title VI of the bill would provide $100 million for credit and housing counseling to help families currently facing foreclosure and to help prevent foreclosures from taking place in the future. In an effort to ensure that funding goes to support already successful foreclosure prevention counseling hotlines, United States Senator Ken Salazar offered an amendment that would require the counseling entities and State Housing Finance Agencies that receive funding to coordinate with non-profit organizations currently operating toll-free foreclosure prevention hotlines. “Hotlines like Colorado’s Foreclosure Prevention Hotline provide a free and easy way to connect borrowers with experienced counselors and lenders who can help them understand their options, negotiate solutions and find the best resolution for their particular circumstances,” said Senator Salazar. “This amendment would simply ensure that entities receiving credit counseling funds under the bill work with already-established hotlines that are providing much needed assistance to struggling homeowners in Colorado, and across the nation.” The Colorado Foreclosure Prevention Hotline, operated by Denver-based non-profit Brothers Redevelopment, Inc., has been enormously successful in assisting homeowners facing delinquency or foreclosure since its launch in October 2006. Five months after its launch, the hotline reported that 10,000 people had called asking for assistance, and that 4 out of every 5 callers successfully avoided foreclosure. From the hotline’s inception through the end of 2007, it received over 25,000 calls. The hotline has been successful in large part because the organizations that created and operate it are intimately familiar with the needs of homeowners and communities across Colorado, and have longstanding relationships with experienced counselors throughout the state. Ohio, Indiana, and Florida also have statewide foreclosure hotlines. Colorado was hit especially
hard by the foreclosure crisis in its early stages, and will continue
to feel widespread negative effects in the years to come. The Center
for Responsible Lending projects that Colorado will experience nearly
50,000 additional foreclosures in 2008 and 2009, as adjustable-rate
mortgages reset and as home values continue to plummet. In addition
to those 50,000 foreclosures, almost 750,000 homes – approximately 35
percent of all the homes in Colorado – will suffer declines in their
value. ###
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