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Colorado Foreclosure Protection Act |
Colorado Foreclosure Protection Act ,$6-1-101-1120, C.R.S., is for contract between a foreclosure consultant and the borrower. When you face foreclosure then you are consulted by many consulting companies and agencies who promise to protect your home from foreclosure by providing foreclosure assistance. But all the promises are not real and companies do not provide true help and sometimes put you in more trouble. So always be cautious of these. According to the Colorado Foreclosure Prevention Act, no company can charge the fee before the completion of its services.
According to the Colorado Foreclosure Protection Act consultant offers help to stop or delay the process of foreclosure and can be any person except for attorney, bank, realtors, non- profit organizations, savings and loans association, trust companies, title insurers, credit unions and non insurance companies.
The Colorado foreclosure prevention act further protects the consumer from the scams. In this mostly the consulting companies mislead the consumer and take the title of their home making the borrower to repurchase it or live on lease there. In other cases false documents are presented to the borrower. Rescue companies sometimes offer help without having ability to pay the foreclosure.
Requirements
According to the foreclosure act in CO, a written agreement for any services in stopping or delaying the foreclosure must be made by the consultant with a home owner. Twenty-four hours are given to the home owner for signing the contract. Further according to the Colorado Foreclosure Protection Act, the language of the contract must be the one the is spoken by the home owner and must have the following details
- Name of the consultant
- Address of the consultant
- Services to be given and terms of payment
- Notary Public must then acknowledge the date of the contract and the signature of the homeowner. This acknowledgment must be done in the presence of homeowner.
- Along with this there should be the provision of cancellation by the homeowner at any time
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Colorado Foreclosure Prevention Act: Guidelines
The Colorado Foreclosure Prevention Act has certain guidelines for the consultant, which are as follow:
- Real or personal property of the homeowner under contract cannot be acquired.
- No fee can be charged till the complete services are not rendered.
- Compensation or interest on loan cannot exceed the prime rate that are given by the Federal Reserve and the total interest rate cannot go beyond eight percent per year.
- Taking Power of attorney for the purpose other than inspection is against the act.
- Doing anything that is regarded as misleading by the court.
- Making the contract that is not according to the Colorado Foreclosure Protection Act
If the consultant violates any part of the Colorado Protection Act then there are certain penalties for this that include:
- Any violation will result in the county jail for up to one year and a fine of up to $25 000 or both;
- The fine of $2,000 for any Civil penalty. If the age of the homeowner is 60 years or more than that then fine of $10,000 per violation is charged.
- High damages, costs and attorney fees
So now the homeowners can get sigh of relief as there is the Colorado Foreclosure Protection Act for their assistance and help. To get further help check the links listed by Realestatezing.com
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| The Colorado Foreclosure Protection Act | Find the details on the Colorado Foreclosure Protection Act by going through this web link. Here the list of notice, definitions and other specifications can also be checked.
Website:http://www.leg.state.co.us/ |
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