If you are facing foreclosure of your Denver Area property you have several options to avoid foreclosure. The main thing is to act now. No more waiting. The sooner you begin to check out your options the more you will have. As time goes on your best options may no longer be available.
Communicate
If you are already behind on your mortgage payments your lender will be calling and sending out notices. Don’t ignore them. Communication is key even if you don’t know what to do and do not have any way to pay them. If you don’t want to talk to them respond in a letter so they know what is going on with you. You don’t have to be subjected to nasty collection calls but most lenders have developed a more humane approach to find out your situation and let you know what your options are. Most lenders want to avoid foreclosure as much as you do. If you are not sure which approach is best for you or don’t fully trust your lender to have your best interest in mind, contact a professional for assistance in determining the best approach for your situation.
What to expect
Once you are 30 days late on a payment for your Denver area home you are in default but not in foreclosure yet. Any time after you are 3 months behind your lender may file the Notice of Election and Demand (NED). That is the official step that begins the foreclosure process in Colorado. You will know because you will receive multiple copies via certified mail. Filing of the NED establishes a foreclosure auction date about 110 to 120 days out. At this point you have about 4 months before the auction of your Denver area property. This date can be postponed for up to a year at the discretion of the lender, but they have to have a good reason to do so. Having a foreclosure avoidance program in process and under review is the most common reason for a lender to postpone auction. Some lenders have a policy of not postponing, so do not wait to take action.
Here is a list of 10 alternatives to Avoid Foreclosure. Some will apply to you and others will not:
- Short Sale
- Refinance
- Bankruptcy
- Forbearance
- Reinstatement
- Repayment Plan
- Rent the property
- Mortgage Modification
- Deed in lieu of Foreclosure
- Service member’s Civil Relief Act
Click on the link for a free report I am offering called “Your First Steps to Avoid Foreclosure” that goes into more detail on each of these 10 options.
Your Plan of Action
The following are steps you can take if you are delinquent, in foreclosure, or on the verge of missing a mortgage payment on your Denver area property.
Your First 3 Steps in the Right Direction
1. Gather financial information (bank statements and paystubs for the last 2 months).
2. Communicate with your lender that you will be seeking foreclosure avoidance counseling.
3. Contact an educated real estate professional like me to learn about your options to avoid foreclosure.
Feel free to contact me any time for more information or assistance.
Colorado Short Sale Guru 