López encourages anyone with questions to reach out. “Having a foreclosure notice is scary. Having financial challenges in the pandemic is scary, it’s frightening. But don’t let that paralyze you,” he added.
Denver city leaders say they want to help struggling homeowners during the pandemic. The Denver Housing Authority, Office of Financial Empowerment, and other city offices are hosting a series of virtual town halls to provide resources for those in need.
CBS4’s Mekialaya White asked Denver Clerk and Recorder Paul López what the current situation looks like for homeowners facing financial challenges.
“Foreclosures were down in 2020 due to the moratorium on foreclosures on federally backed mortgage loans, but we want to be prepared in case we see a sustained economic downturn due to the pandemic,” explained López.
According to the city’s website, new foreclosures in Denver were down to 223 in 2020, from 581 in 2019.
However, López says the city wants to make sure homeowners understand options if they’re facing foreclosure, bankruptcy, or any other financial difficulties.
“Back in 2007 and 2008 during the recession, the west side of Denver and Montbello and east side got hit very, very hard. Most of those foreclosures put a lot of people investment in their homes down the tubes. It hit us like a tsunami and at the end of the day we all know what that story was. Highest foreclosures we’ve seen in a long time. I think it’s important that we are ahead of the game,” López said.
The town halls will feature a variety of topics, including an explanation of the foreclosure process, and a list of outside information resources. Experts on the call cannot give out legal advice or administer debt mitigation or appeals, however.