Colorado Lawmakers Unveil Foreclosure Bill

Plan Would Give Some Homeowners More Time, Notification

State lawmakers have announced a plan to stem the tide of foreclosures in Colorado without government bailouts.

The so-called American Dream Protection Act of 2008 would give homeowners more opportunities to save their homes from foreclosure.

"It's better for everyone, better for the lender, the borrower and the people of Colorado if we keep people in their homes, and that's what we're trying to do here," said Rep. Mark Ferrandino, D-Denver.

The bill is still being drafted, but he said he hopes to introduce it sometime this week.

It would give judges the power to grant a 90-day time-out to homeowners if the bank has not made a good faith effort to negotiate and if homeowners are committed to saving their homes.

It also puts new notification requirements on mortgage lenders before they foreclose.

Lenders would need to make their best efforts to contact people who fall behind in payments to tell them about mortgage counseling assistance.

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