Is your Denver home in foreclosure?

Are you in danger of falling behind on your
mortgage? Are you already behind several months?

Technically, you are in default after only a 30
day late payment. However, foreclosure is a costly process for the lender and
most will work with you as the homeowner, to prevent the process from actually
completing as a foreclosure and becoming a statistic. The lender will make a
payment arrangement, arrange a forbearance agreement, prepare a loan
modification, agree to a short sale or agree to take the property back
through a process called a deed in lieu of foreclosure. You still loose
ownership to the house as in a foreclosure but the process is quicker and less
costly.

The official notice of default will probably be
filed with the county in which you live, 90-120 days after your last payment to
the lender. Fees and legal costs are added to the balance as well as the
accruing interest and late fees. Once the notice is filed, your options are
few. If you do agree with the lender to do a repayment plan you have to be able
to make the payments. Typically the amount you are delinquent would be amortized
over the next 12-18 months and added to your regularly scheduled payment. For
example if you are scheduled to make a payment of $1200 per month and you are
behind $8,000 (this will include all fees incurred), your new payment will be
$1644 for the next 18 months. If the reason you are in foreclosure was a one
time unavoidable hardship and you can afford a $400 increase to your payment
then this is a good option. If you are having trouble overall with your monthly
obligations this solution may just prolong the inevitable. If you default on the
repayment arrangement the foreclosure will be accelerated.

Make sure you have good communication with
your lender - even if they make it tough to get the right person. Sometimes
you have to deal with the collections department but you really want the loss
mitigation department because they are the ones that can assist with making a
payment arrangement. Be persistent as it is most important to try and save your
equity and your home. Your credit will suffer but will recover
eventually. If you can not work out a plan to keep your home, don’t wait
too long, contact a real estate agent and get the property on the market as soon
as possible. If you can sell the house before it goes to sale at the public
trustee’s office you will retain the equity in your home. If you do not sell the
house on your own, the trustee will sell it for you and the lender could in some
cases try to recover any deficit between what you owe and what the house sells
for… from YOU!

 If you are in
foreclosure and you need assistance or advice, please contact us at
303-696-6933.

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