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Colorado receives approximately $100 million for loan modification and foreclosure alternative programs

Help For Distressed Homeowners

Earlier this year, the Colorado Attorney General’s Office joined a $25 billion multi-state settlement with the five largest banks who account for 60 percent of the home loan servicing market. These banks are Bank of America, JPMorgan Chase, Wells Fargo, Citi and Ally. The settlement was entered to end the problematic business practices and to help distressed homeowners. Under the terms of the settlement, Colorado received approximately $73 million in credits from the banks to apply to principal loan reductions, affordable loan modifications or other alternatives to foreclosure. In addition, for borrowers that do not qualify to receive credits, a supplemental $24 million pool of funds is available to be utilized for loan modifications.

What does this mean for you?

If you are a homeowner that has been unsuccessful in pursuing a loan modification or obtaining other relief from your lender, and that lender is a party to the settlement, they may now be more willing to consider a loan modification.  All of the programs have eligibility requirements, and you or your attorney should contact your lender to determine your individual eligibility.

Eric L. Nesbitt, Esq.
Law Offices of Eric L. Nesbitt, PC
Phone 303-741-2354
Email Us
Nesbitt Law Offices Website

Published by
Eric L. Nesbitt, Esq.

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