Colorado Foreclosure Facts And Information For Property Owners

There is often a lot of false information regarding foreclosures. It is helpful for homeowners to have accurate information. This article offers Colorado foreclosure facts and information for property owners.

Common Mistakes

Stop Paying to Get Help

Home owners may request loan modification and other assistance programs before being delinquent. These programs evaluate your finances to calculate eligibility.

There Is Nothing You Can Do After Obtaining a Foreclosure Notice

Mortgage companies would rather avoid foreclosure. Even if foreclosure proceedings begin, mortgage companies can still allow you to prevent foreclosure. Short sales are one solution prior to a finalized foreclosure. They consist of having an offer on your home and asking the mortgage company to accept less than the balance owed.

You Must Move Out Immediately After the Foreclosure Notice

The foreclosure notice is merely the first step in a lengthy process. More often than not, being several months late on your loan creates the foreclosure notice. It will take a long time for a lender to get through the necessary process to ultimately take possession of your home. Leaving your property immediately is not required, but planning for it is advantageous.

I Will Never Get Approved for Another Loan

Although a foreclosure is viewed cautiously by future mortgage companies and severely lowers your credit rating, you may be able to buy another home in several years. It is important to demonstrate good credit practices to increase your score in the meantime. Also expect a larger required down payment and higher mortgage rate. This is how lenders will offset the risk of granting you another mortgage.

All of My Belongings Will Be Taken

Household Goods, clothes, and other personal belongings are not taken. Only items affixed to the home are part of the foreclosure. This includes flooring, lighting, and plumbing. Consider what you would usually leave when selling a home and use that as a general guideline.

The Debt Is Forgiven After Foreclosure

The mortgage company will sell your property but may recover the full amount owed to them. You are technically responsible for that difference. There may be ways for the lender to “forgive” that deficiency. Consult with a local attorney for clarification.