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COLORADO SPRINGS, Colo. (KRDO) — State officials created a program to help tenants who struggled to pay rent during the COVID-19 pandemic, and now a similar program is starting for homeowners.
The program, under the Department of Local Affairs, is called the Colorado Emergency Mortgage Assistance Program.
Homeowners are eligible to apply if they experienced a financial hardship related to the COVID-19 pandemic after Jan. 1, 2020 and have incomes equal to or less than 100% of their county’s area median income.
Randi Davis, an administrator of the program in El Paso County, said that the state is currently processing applications from February and March, so we could be seeing just the tip of the iceberg — because experts have said that a rising foreclosure rate is a sign that the area’s hot housing market is about to cool off,
“I’ve been seeing 10 to 15 new foreclosures filed every week,” she said. “The county is now at 455 foreclosures so far this year. It’s happening because people didn’t have a plan due to COVID.”
Many people lost jobs or took pay cuts during the pandemic.
“Back in 2009, the county had an average of 102 foreclosures a week,” Davis said. “Thankfully, we aren’t there.”
However, she adds that the apparent rise in foreclosures won’t help people who are still struggling to find affordable and available houses.
“A lot of people are hoping this situation will help them,” she explained. “Unfortunately, I think that cash buyers and investors will absorb the foreclosures we’ve had — at least for a bit longer.”
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