Forum To Aid Homeowners Avoid Foreclosure Problems

Banks, law enforcement authorities and housing agencies will join hands Saturday in an effort to spare Pueblo citizens the indignity and financial consequences of making bad credit decisions, particularly on home loans.

They will host a public meeting from 9 to 11 a.m. Saturday at the Pueblo Convention Center, to reach out to people who are in danger of losing their homes to foreclosure, or who are considering refinancing.

Lionel Trujillo, executive director of NeighborWorks (formerly Neighborhood Housing Services), said Pueblo's foreclosure rate has soared in recent years and at least some of the increase is attributed to predatory lending.

In fact, he said, there were more foreclosures filed in Pueblo County last year than the number of building permits issued.

"People get into mortgage situations that they could never actually pay off the loan and own the house," he said. "We know there is a lot of predatory lending. And they are predators: They go through records at the assessor's office and target elderly people who either own their home outright or owe very little on it. Then they contact these people and say, ‘Wouldn't you like to get a new car, or help your granddaughter out?’ and the next thing they know they're involved in a dangerous situation."

Fraudulent lending practices aren't limited to home mortgages, he added. "One guy bought a freezer and some meat, then they refinanced it and refinanced it until he was about to lose his house."

NeighborWorks is teaming with offices of the district attorney, public trustee and Colorado attorney general, local counseling agencies and reputable lenders to present the forum on Saturday. Other participants are Colorado Housing and Finance Authority, Catholic Charities, Consumer Credit Counseling Services, Posada, Pueblo Association of Realtors, SRDA, Vectra and Wells Fargo banks and Premier Mortgage.

They will present information to help home buyers avoid unscrupulous lending practices and make wise, informed financial decisions. For families who are already in the throes of foreclosure, resources to help them will be available as well.

"What's happening is, we have a loan counselor on board, but by the time people contact us, the sheriff is already nailing a notice on their door," Trujillo said.

From the people attending the meeting, the helping agencies will develop a coordinated system to connect homeowners with the appropriate counseling programs and agencies.

Trujillo said the partner agencies hope to do similar meetings every quarter.

"Even if we can put a dent in the number of foreclosures, it will be worthwhile," he said.

Source: THE PUEBLO CHIEFTAIN