Total Bankruptcy

Just one week ago, Colorado Governor Bill Ritter took a major step to try to stop the mortgage foreclosure problem in the state by signing five foreclosure-related bills into law. With Colorado having one of the highest foreclosure rates in the country and Denver being described as the “Wild, Wild West of mortgage fraud," Ritter said that the new bills would help stem this problem in the state. From strengthening existing mortgage fraud laws and prohibiting improper real estate appraisals to requiring mortgage brokers to register with the state and understand their ethical duties to consumers, Ritter and Colorado residents are hoping this block of legislation below will have its desired effects.

■ House Bill 1322: This new Colorado foreclosure law will attempt to strengthen existing mortgage fraud laws in the state via several measures in its language.

■ Senate Bill 203: This legislation would provide more regulation of the mortgage brokerage industry in the state by requiring mortgage brokers to register with the state.

■ Senate Bill 216: In a similar light to SB203, this new Colorado foreclosure law will regulate mortgage brokers by spelling out their ethical requirements, which include not tricking people into deals that are of no benefit to consumers.

■ Senate Bill 85: Similar to SB216, this legislation will prohibit the improper influencing of real estate appraisals.

■ Senate Bill 249: Last but not least, this new Colorado foreclosure law will charge insurance companies with an annual fee in order to compensate for analysis and enforcement of the industry.

Just how prevalent is the need to stop foreclosure in Colorado? Last year, there was one foreclosure per every three households in Colorado, with Denver seeing more than 37,400 foreclosures.

If you’re facing foreclosure in Colorado or somewhere else, get in touch with a local bankruptcy lawyer who can explain how Chapter 13 bankruptcy has helped others stop foreclosure.