Stressed and strapped home- owners weigh their options

“It’s hard to wrap your arms around all the foreclosure data”

As of November 15, 2009, Gunnison County foreclosure filings have more than doubled over 2008, reaching 164 compared to 81 all last year. And judging by the latest numbers released last Thursday by the Colorado Division of Housing, tough times are still ahead.

 
The report stated new foreclosure filings in Colorado reached a record high of 12,468 during the third quarter. New filings for the first nine months of 2009 were up 18 percent to 35,112, compared to 29,852 during the same period a year ago.
In response to foreclosure trends in Gunnison County and throughout Colorado, Crested Butte-based attorney Aaron Huckstep has hosted free informational seminars in places like Alamosa and Pagosa Springs—two communities, like Gunnison County, which don’t have HUD-certified Homebuyer Counselors nearby. Such counselors assist those in need to make decisions regarding the best route to take if they cannot make their mortgage payments, whether it’s foreclosure, short sale, or loan modification. The closest options for this free service are in Durango, Grand Junction, or Pueblo.
On Tuesday, November 24, Huckstep presented a foreclosure seminar at Maxwell’s Restaurant in Crested Butte to educate homeowners about their options.
“Crested Butte is the classic ski town, where if you own a house or your income goes down quickly, people can get in trouble,” Huckstep said. “They are the classic example of people who will get in trouble in a downturn.”
But Crested Butte and other rural resort towns are faring better than some other counties in the state, where demand for real estate isn’t as high and the market is flooded because of excessive building and development.
“Given what I know, real estate in Crested Butte seems to be in demand,” said Colorado Division of Housing Community Relations Director Ryan McMaken. “You probably won’t see as many completed foreclosures in Crested Butte because of that. It’s going to be more tied to economic growth in the area, a worsening economy, unemployment, and declining incomes.”
Despite the demand, all those previously mentioned factors are contributing to a growing percentage of foreclosure filings in the county. From January to September 2008, there were 46 foreclosure filings, compared to 148 in the same time period for 2009. That amounts to a 222 percent increase.
All the more reason for people like Huckstep to reach out to the community and offer some free advice. He said he started working with local real estate agents 18 months ago on short sale transactions. At that time, “Most people weren’t interested in modifications—more were into short sales or foreclosures,” Huckstep said. “Lately we’ve seen a lot more people interested in loan modifications.”
Why modify? It’s the one option that keeps you in your house, he said. The federal “Making Home Affordable” program is aimed at aiding distressed homeowners. At its full extent, the program can adjust the loan to 2 percent interest and extend the term of the loan to 40 years.
K.T. Gazunis, the director of the Gunnison County Housing Authority, said they are referring all foreclosure inquiries to the Colorado Foreclosure Hotline at 1-877-601-HOPE.
“Everyone’s situation is so individualized,” she said. “They are there to help: once you get the big picture, then call the state for one-on-one counseling, which is free of charge. They have a staff of counselors who are providing the latest, most up-to-date and appropriate information.”