In an effort to address the problem of mortgage delinquency and foreclosure in the state, legislators have established a new law that will speed up the process of Colorado foreclosures. The law will take effect on August 1, 2010 and lenders who own abandoned collateral can take advantage of this regulation by then.

According to reports, some homeowners who have suffered from the foreclosure crisis, like seeing their properties become Wachovia foreclosures for sale or become any other bank foreclosed properties, and those who are facing the possibility of foreclosure, have walked away from their homes without any effort exerted to save their houses. This has created neighborhood blight and increased the number of vacant and abandoned homes in the state.

The new law is meant to lower the number of abandoned houses and speed up the process of putting them back on the market and on a bank owned property listing. The plan is to give investors the chance of acquiring these vacant residential structures and hopefully work on improving them and selling them off to interested buyers.

Under the new regulation, lenders can qualify for the expedited process by presenting evidence to the court that supervises Colorado foreclosures that the residence in question has been boarded up and the windows have been broken or that the doors of the house have been damaged, unhinged or have remained unlocked. Houses that have no water, gas and electric service for 30 days or more can also qualify under the rule.

Homes can also qualify and be included in listings of foreclosed homes for sale if there had been official vandalism and trespassing reports and if they are under such conditions that they fail to satisfy the minimum sanitation and safety standards put in place by authorities. Lenders who wish to apply for the expedited process should present supporting documents that at least two of these requirements have been met. Once the courts approved the application, the foreclosure process for the home will be shortened by two months or more.

The new regulation also accepts property owner consent in lieu of lender evidence that the Colorado foreclosures are in dismal conditions and have been abandoned. This provision, legislators have stated, can put homeowners in better positions to negotiate an alternative agreement with their lenders.

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