Understanding Pre-Foreclosure in Colorado: What It Means and What You Can Do
If you’re wondering what pre-foreclosure means, listen up as we explain the process from start to finish.
When a homeowner falls behind on mortgage payments, the lender sends a notice of default, notifying the borrower of overdue payments. This notice states that if payments aren’t made within a set period, the lender will take legal action—potentially resulting in eviction.
This letter is also sent to parties with a vested interest in the property (contractors, realtors, brokers, etc.) and is published in a local newspaper to notify potential buyers of the property’s availability.
Know Your Rights and Options When Facing Foreclosure
It’s crucial to understand your rights and options during this challenging time to navigate the situation swiftly and successfully. In Colorado, homeowners from all walks of life, including those in prominent areas like Black Forest and Broadmoor, may experience foreclosure. Partnering with an experienced local real estate professional, such as HBR Colorado, can make a significant difference, guiding you through each step of the process.
What To Do If You’ve Received a Notice of Default
If you’ve received a notice of default, you need to act quickly. Here’s how to handle foreclosure effectively:
- Stay Calm
Don’t let emotions cloud your judgment. Staying level-headed allows you to make practical decisions and take proactive steps. - Educate Yourself
Learn about the foreclosure process and what you can do to slow it down or even halt it. Speaking with an attorney may also be helpful for specific guidance. - Contact Real Estate Professionals
Reach out to experienced professionals, like HBR Colorado, who can help you explore options such as negotiating a short sale or selling for cash, ensuring you walk away with some equity if possible. - Make a Decision
Eventually, you’ll need to make a choice—whether that’s negotiating with the bank, selling quickly for cash, or another option. Acting decisively may help you retain some financial stability and avoid a hit to your credit score.
HBR Colorado is here to provide a no-obligation consultation to discuss your options and help you find a solution that meets your needs.
Contact Us for Help Avoiding Foreclosure in Colorado
Call us today at (719) 286-0053 if you’re ready to explore your options. We’re here to help you navigate the pre-foreclosure process and discuss solutions that make the most sense for you.
What is a Foreclosure Notice of Default in Colorado?
If you were wondering what is a pre-foreclosure then listen up as we are going to explain the entire process from front to back.
In a nutshell, a notice of default is a letter that is sent from the lending institution during pre-foreclosure to the borrower to inform them that they are behind on the payments for their loan, stating that if the balance isn’t paid for within a certain time frame, the lender is going to take legal action to collect the debt, such as evicting the borrower from the property using a court order.
A copy of this letter must be provided to any party who has an interest in the property (including contractors, realtors, brokers, the title company, etc.)
It is also required by law that the notice of default be published in a local newspaper to allow the public to get access to purchasing the home to satisfy the debt to the lender.
This can make some homeowners who are going through foreclosure uncomfortable, but there is a good reason behind doing this, as it protects the consumer.
Know Your Rights, and Know Your Options When Dealing With Foreclosure
It’s critical that you know what options are available to you when you are going through this extremely difficult time in your life, so that you are able to effectively deal with this situation in the fastest way possible, and you end up landing back on your feet and are able to successfully purchase an apartment or condo, to continue your existing lifestyle in the way that you have developed it over time.
People all over Colorado are dealing with foreclosure, even in some of the more prominent, well-to-do neighborhoods such as Black Forest, Broadmoor, and others. There is no difference with a person who earns a substantially higher income, as these types of homeowners will typically have more debt than the average middle-class consumer.
Dealing with a notice of default can be an extremely difficult process, which is why you should be working with a local real estate professional such as HBR Colorado, who is experienced with the foreclosure processes within this state, and we will be able to navigate you through this treacherous process in your day to day life.
If you have already received a notice of default letter from your lending institution, you must act immediately, as there is a limited window of time in which you must take action in order to retain your home, or sell it for maximum value and walk away with some cash in your pocket at least, instead of the bank taking everything and then you are left out on the street with nothing.
How to Handle Foreclosure Like a Boss:
1) Stay Calm and Keep Your Head.
This is the most important part of the entire process. You must not freak out and let your emotions get the best of you. A lot of people get EXTREMELY upset when they get a notice of default from their lender.
This kind of emotional reaction can cloud your thinking and it will block you from taking smart, practical action steps that will allow you to navigate this process with ease.
2) Learn Valuable Information.
Immerse yourself in learning about the foreclosure process, and what steps are available for you to take to halt this process.
Research what you can do to avoid this affecting your credit score for 5 – 7 years. You may also want to contact an attorney who can provide you with information related to your situation, so you can take action immediately to remedy the situation.
4) Contact Professionals.
We’re here to help you avoid foreclosure in Colorado. We can help you negotiate a short sale with the lender, or we can buy your house cash so that you can settle your debt with the lender and usually our clients will also have some money to walk away with in their pockets. (as long as they still have some equity left in their home).
5) Make a Decision.
It can be extremely tough, and you will probably have the inclination to continue procrastinating and avoiding this situation, but you must face reality and come to terms with the fact that you are losing your home, and you must take appropriate steps to secure a promising future for yourself and your family.
Another option would be selling your home quickly for cash so you can walk away with some dignity before the bank evicts you through legal proceedings and you lose your home and decimate your credit score.
Contact us today for a free consultation, there is no obligation whatsoever. We are only here to help and serve our clients.
