More big news for Denver foreclosures: In the largest industry settlement since the US settled with the tobacco industry, 49 state attorneys, including John Suthers of Colorado, filed the $25 billion agreement in court on Monday agreed to last month.
We’re still waiting to see exactally how this plays out and if it will impact the number for foreclosures and Denevr short sales on the market. the deal is supposed to help roughly a million borrowers to see a reduction in the mortgage debt, but only time will tell.
From the Denver Business Journal:
The complaint alleged the five mortgage servicers’ misconduct “resulted in the issuance of improper mortgages, premature and unauthorized foreclosures, violation of service members’ and other homeowners’ rights and protections, the use of false and deceptive affidavits and other documents, and the waste and abuse of taxpayer funds.”
Colorado had the nation’s ninth highest state foreclosure rate in 2011 among the states and 12th highest in December 2011, according to RealtyTrac.
Most of the settlement amount, about $20 billion, is slated for home refinancing and principal reductions for struggling borrowers. About 1 million borrowers can expect their mortgage debt to be reduced by lenders or to refinance their homes at lower rates.
If you’d like to learn more about Denver foreclosures or Denver HUD homes, give our team of foreclosure experts a call at 303-726-1874.
Inventory is still way below average levels and is nearly 40% below where we were at this time last year.