When homeowners in Colorado face the potential of foreclosure, it can be a daunting and stressful experience. However, understanding the state-specific foreclosure process and being proactive can provide various alternatives to foreclosure. With the right guidance, especially from a seasoned Colorado real estate attorney, homeowners can confidently navigate their options.
Understanding Colorado’s Foreclosure Process
Colorado has two types of foreclosure processes: judicial and non-judicial. The more common type is a non-judicial foreclosure, meaning that the court has a minimal role in such foreclosure proceedings. A Public Trustee primarily oversees this procedure. Here’s a brief rundown of the steps involved:
- Missed Payments: Once you’ve missed several mortgage payments, the lender will typically send a letter notifying you of the missed payments and the potential for foreclosure.
- Notice of Election and Demand (NED): If the payments remain unpaid, the lender will file an NED with the county’s Public Trustee, officially starting foreclosure. Homeowners usually have 110-125 days from the NED filing before the sale of their home.
- Right to Cure: Homeowners have a period to “cure” the default, bringing the mortgage current by paying all the missed payments, late fees, and other associated charges.
- Rule 120 Hearing: Before authorizing a sale, the party seeking foreclosure must file a motion with the court requesting an order authorizing a foreclosure sale pursuant to Colorado Rule of Civil Procedure 120. The party being foreclosed upon must respond, or the court may issue an order for foreclosure sale without a hearing. At the hearing, various issues relevant to determining the propriety of foreclosure will be addressed.
- Public Sale: If the default is not cured and the court authorizes a foreclosure sale, the Public Trustee will auction off the property.
- Redemption Period: Even after the sale, homeowners in Colorado have a short redemption period during which they can repay the full mortgage amount and reclaim their property.
Ways to Avoid Foreclosure
- Loan Modification: Requesting a loan modification involves adjusting the terms of your mortgage to make the monthly payments more affordable.
- Short Sale: This involves selling the property for less than the remaining mortgage balance, with the lender agreeing to accept the reduced amount as full payment.
- Deed in Lieu: You voluntarily transfer the property’s title to the lender, avoiding foreclosure.
- Refinancing: If you qualify, you can replace your existing mortgage with a new loan with more favorable terms.
- Bankruptcy: While this option may have significant financial consequences, it can delay or even stop foreclosure in certain circumstances.
- Speak with a Housing Counselor: HUD-approved counselors can provide free advice on avoiding foreclosure.
It’s essential to note that not every option may be suitable for every homeowner. Consulting with a Colorado Foreclosure Lawyer can help you understand your unique circumstances and identify the best approach to save your home.
An Ally in Your Corner
Facing foreclosure is never easy, but immediate action can make all the difference. If you’re navigating the complexities of a looming foreclosure, don’t do it alone. Contact Baker Law Group, where a Colorado Foreclosure Attorney is ready to guide you through every step of the process.
With expertise, dedication, and a deep understanding of the Colorado market, our team can help safeguard your home and future. When safeguarding your property rights, trust a Real Estate Attorney Colorado homeowners have relied upon for years. Let’s tackle this challenge together.