This Web only Speakout has not been edited.

Al Gold

Wednesday, January 9, 2008

The Rocky reported this week that 2007 foreclosure filings in the seven-county Denver area almost doubled from record filings in 2006, when more than 18,600 people lost their homes.

Sadly in the past two years, Colorado consistently has ranked among the nation’s top states in foreclosure rates, according to RealtyTrac.

That includes homes in all price ranges – even $1 million homes.

We’re seeing more foreclosures because home loans are easier to get and adjustable rate mortgages are resetting beyond homeowners’ means.

We all bear the burden when our neighbors lose the American Dream of homeownership.

Not only do foreclosures destroy homeowners’ equity and ruin their credit, they also impact entire neighborhoods and communities. Other homes located near foreclosed houses lose value. And each foreclosure costs $30,000 to $50,000 in law enforcement services and lost economic development, according to studies.

There’s good reason to keep people in their homes. Research from the Center for Housing Studies at Harvard University shows that homeowners typically enjoy stronger family and neighborhood stability. Their children perform better in school, and they are more likely to participate in civic activities.

For the majority of Coloradoans, owning a home is the biggest investment of their lifetime, and the rewards of this investment are plentiful. Home equity can help fund children’s college tuitions, increase business opportunities and build nest eggs for retirement.

As predictions indicate growing foreclosures, there’s hope for struggling homeowners – but they must act early. Studies show that homeowners who are one or two payments behind are more likely to keep their homes than those further behind on their payment schedule.

The first step is to call a certified housing counselor. Counselors often are the first line of defense, helping homeowners work with lenders to develop a reasonable plan.

And in Colorado, a new state law that went into effect this month gives people who are losing their homes an extra 75 days to work out a deal with lenders.

In response to alarming foreclosure rates, NeighborWorks – the nation’s largest provider of certified homeownership counselors – and the Ad Council have launched a national public education campaign to connect homeowners to the Homeownership Preservation Foundation’s toll-free foreclosure counseling hotline, 1-888-995-HOPE.

The hotline provides free counseling 24 hours a day, seven days a week in both English and Spanish. The goal is to steer homeowners to trusted sources for help.

Answering calls on Colorado’s behalf are counselors from NeighborWorks organizations, including Westminster’s Colorado Rural Housing Development Corporation.

Homeownership is a win; foreclosures are devastating. In Colorado, too many of our neighbors are losing their homes. It doesn’t have to be this way.

Al Gold is the executive director of Colorado Rural Housing Development Corporation, a member of the national NeighborWorks network and one of only 96 NeighborWorks homeownership centers in the nation. Visit www.crhdc.org.

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