Postcards offer help to keep your home

Southeast Colorado Springs is one of seven areas being targeted by state officials as part of a campaign to alert homeowners to resources that can help them stave off foreclosure.

More than 6,700 postcards will be mailed starting this week to owner-occupied households in the 80916 ZIP code in the Springs, urging homeowners to take advantage of free counseling available through the Colorado Foreclosure Prevention Hotline. The postcards are being sent to all homeowners, regardless of whether they're facing foreclosure.

The informational campaign was outlined Monday during a state Capitol news conference by Colorado Gov. Bill Ritter and Sen. Ken Salazar. Ritter declared this week Foreclosure Prevention Awareness Week.

"Don't let fear or guilt prevent you from getting help," Ritter advises on the postcard. "The sooner you take action, the more options will be available to you."

State housing officials are sending postcards to areas that have high foreclosure rates, yet were not among the most active neighborhoods that use the Foreclosure Prevention Hotline, according to the Colorado Housing and Finance Authority.

In addition to southeast Colorado Springs, other areas that will receive postcards include one in Parker, another in Greeley and two each in Denver and Aurora.

The Foreclosure Prevention Hotline, which connects homeowners with a dozen nonprofit housing counseling agencies, was launched in October 2006. Through 2007, state officials estimate the hot line helped 5,600 Colorado families keep their homes. The hot line number is 1-(877)-601-HOPE.

El Paso County had a record 3,556 foreclosure filings in 2007, according to the Public Trustee's Office. Based on the number of El Paso County foreclosures in the first quarter of this year, some economists fear 2008 filings could surpass last year's mark.

Local foreclosure numbers should be kept in perspective. Although foreclosure record was set in 2007, local officials say the problem was worse 20 years ago when nearly the same number of foreclosure filings were spread out over tens of thousands of fewer homes.

Meanwhile, a state survey of 12 Front Range counties during the 18 weeks from November 2007 to April 4 showed 11,633 properties facing the first step toward foreclosure. The outstanding loan totals at risk: $2.25 billion.

Economists have projected 50,000 more homes statewide will enter foreclosure from 2007 through the end of this year, Salazar said. As the impact of foreclosures and abandoned homes ripples across communities, economists also project a significant drop in value for 750,000 Colorado homes.

Foreclosure Prevention Awareness Week is being funded by a $1.5 million federal grant awarded this year to the Colorado Housing and Finance Authority and 12 other groups. About $1.2 million has been set aside to hire and train additional foreclosure counselors, and the remainder will help promote the foreclosure hotline.

In addition to the governor's office and the Housing and Finance Authority, other participants in Foreclosure Prevention Awareness Week include the Colorado Division of Housing and Brothers Redevelopment, a nonprofit housing group.

The Rocky Mountain News contributed to this report.