2 Lawmakers Announce Bill for Foreclosure Relief

Home for sale signs line a street of a new subdivision in Cascade Locks, Ore., Wednesday, April 9, 2008. The Bush administration announced new steps Wednesday to help more homeowners head off foreclosure. The Senate, in the meantime, worked to complete a bipartisan housing bill the White House says would worsen the mortgage mess. (AP Photo/Don Ryan)
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Denver (AP) Two state representatives plan to introduce a bill this week that they say will help homeowners save their homes from foreclosure.

The bill is being presented by Democrats Mark Ferrandino and Sara Gagliardi

It would give a judge authority to grant a 90-day timeout to borrowers if a bank has not demonstrated a good faith effort to negotiate and if homeowners show a commitment to saving their houses.

Before foreclosing, mortgage lenders would be required to make their best efforts to tell people who fall behind in payments about mortgage counseling assistance. The bill also would direct banks to make a good faith effort to find a resolution.