Homeowners in Colorado may be interested to know about talks of a potential settlement between the states and several mortgage companies. Attorneys general of several states met last week to talk about their respective mortgage investigations and how they can better work together to get banks to reach a settlement regarding their foreclosure practices.

The government officials want to put together a set of requirements for the five largest mortgage servicers that will regulate how they conduct foreclosures and provide some relief to homeowners. Some of the attorneys general have accused the five largest companies--Bank of America, JPMorgan Chase, Citigroup, Wells Fargo and Ally Financial--of deceiving homeowners and conducting illegal foreclosures.

Other smaller companies have also been approached about being part of a potential settlement. Those companies include PNC Financial, HSBC and U.S. Bancorp. However, those companies may be reluctant to sign on because they would be subject to the same rules and regulations as their larger competitors.

The talks have been somewhat secretive, and those present have declined to even say which states were represented. So far, at least three different states have filed their own lawsuits against individual companies. If attorneys general from several states band together, however, it may give them more negotiating power against the powerful giants of the mortgage industry.

People in Colorado who are having trouble with paying their mortgages and are on the verge of foreclosure should know that they have options to alleviate their plight without having their homes foreclosed upon.

Source: Bloomberg, "Attorneys General Discuss Mortgage Probes as Bank Talks Drag On," David McLaughlin and Margaret Cronin Fisk, Jan. 12, 2012