Colorado's Distressed Homeowners Get More Time

Kerri Panchuk | 01.03.08Colorado homeowners now have more time to prevent the sale of distressed properties, according to a Colorado House Bill that officially took effect this week.

House Bill 1387 expands the traditional loan recovery period of 45 to 60 days to a full 75 days for distressed homeowners, according to Ryan McMaken, a spokesperson for the Colorado Division of Housing.

McMaken says before the bill's enactment, the state would give homeowners 45 to 60 days to cure a loan before sending the home to foreclosure auction. Once the 60-day period was past, the owners could only save their property by coming up with the loan's full amount and paying it within the 75-day redemption period. In most cases, this is an impossible feat, McMaken says.

With the passage of the new House Bill, McMaken says homeowners now have the full 75 days to cure the loan without having to come up with the loan's full amount past the 60-day cure period. Even though foreclosure filings will unlikely be affected by the bill, the Colorado Division of Housing hopes the extra days will prevent homeowners from falling into full foreclosure.

"We're hoping the change in the timeline will bring down those foreclosure sales numbers," McMaken said. "Now that there is no period at all where they have to come up with the full value of the loan, they have the extra days to help them end the sale of the home."