Avoid Foreclosure in Denver
If you are having trouble making house payments, avoid foreclosure by seeking help! As soon as you miss a house payment you are in default on your loan. Usually within 90 days, the lender will initiate the foreclosure process and you will receive a Notice of Default (NED). In Colorado, once you receive this notice, it is approximately 3 to 4 months until your house may be sold at auction. (See Foreclosure Process).
- You have not yet missed a mortgage payment but may miss future payments.
- You are already behind on payments.
- You have received a Notice of Default (NED).
- You are having trouble communicating with your lender.
Potential Foreclosure Solutions
Alternatives to foreclosure that may be available include:
- Reinstatement or “Curing” the Loan: Your loan is cured when it is brought current by making all missed payments and paying any related costs. This can be done up to 15 days before the auction.
- Forbearance: When the lender postpones foreclosure to give you an opportunity to make up for overdue payments. For example, the lender could allow you to make your current mortgage payment in addition to part of the back payments for an agreed-upon time period. Unless you find a new, higher-paying job, this option is difficult because it increases your monthly payment.
- Mortgage Modification: The goal of a mortgage modification is to provide you with a more affordable mortgage by reducing the loan interest rate, principal balance, term OR any combination of these loan features. Such a reduction would result in a lower monthly loan payment. A lender must be participating in providing mortgage modifications, and may require more time to process and approve than available during foreclosure.
- Deed in Lieu of Foreclosure: When you opt for a deed in lieu of foreclosure, you give the deed to your property to the lender rather than allowing the foreclosure to ruin your credit rating and risking a possible deficiency judgement.
- Selling your Home: If you have equity in your home, selling may allow you to avoid foreclosure and potentially retain some of this equity. You must sell prior to the auction. Options include selling through a real estate agent and paying commissions; negotiating with a reputable real estate investor like us who will pay all cash within 30 days, but often require a lower price; or sell the house on your own before the auction.
- Short Sale: If you owe more on your house than its current market value and are facing financial hardship, you may be a candidate for a short sale. This process can be tedious because of the financial documentation required,but may not be as detrimental to your credit rating as a foreclosure. (See “What is a Short Sale?”)
Where can I seek FORECLOSURE help?
We will provide a FREE evaluation of your current situation. We will meet with you and discuss potential solutions that address your individual situation. Please contact us at (720)545-0431 or via the form on the Contact Us page.
The Colorado Foreclosure Hotline at 1-877-601-HOPE also connects homeowners with non-profit housing counselors who can provide information on your options to avoid foreclosure. All foreclosure help is provided to homeowners free of charge.
Don’t delay! We can help.