Understanding the foreclosure process
What is foreclosure?
Foreclosure is a process that enables lenders to collect debt default amounts by selling real estate securing lenders or revoking ownership. The foreclosure process begins when the lender submits the appropriate staff and appropriate documentation (see below for details).
Colorado foreclosure law
Colorado foreclosures occur through both court (court) and non-judicial (non-judicial) proceedings.
The judicial process is used when mortgages or trust certificates do not have profit on sale. This process begins when the mortgage lender file matches the court system. The borrower receives a letter from the court's ruling. Normally, payment to lawyers and related parties or written responses requires a 30 day response. If you do not reply within the specified time limit, a ruling is given and the lender can request the sale of real estate by auction. When you submit written answer to the court in writing, there is a hearing, it takes time to process and even notify in advance. When a sentence is entered, the date of the auction will be set. Usually, the future is a few months. Once the real estate is sold, you need to receive a notice of departure from the security agency and leave the house immediately.
The most common way of foreclosure in Colorado is a non-judicial foreclosure procedure. It is carried by public administrators who work as fair parties. This process begins when the lender submits the necessary documents to the public administrator of the county where the property is located. Public administrator submit "Notice of Election and Demand" (NED) to the county clerk and recorder. When NED is recorded, the sale of property administrators will be done between 110 and 125 days of record.
Period before foreclosure
Many factors can lead to mortgage and default failure of foreclosure. Many are not negligence of home owners. Sometimes, struggle (loss of income, military placement, health or family problems) or "loan fraud" or "creative finance" by bank (adjustable rate or ARM, option ARM, negative amortization, or interest only loan). Whatever the cause, confronting foreclosure is not a pleasant experience.
The foreclosure procedure is usually initiated after the homeowner has missed several payments and the various attempts the bank has attempted to collect have taken place. Let's see what is going on generally and what you can do normally.
Day 1: You missed your first payment
Day 1 to 15: Grace period (Some lenders are only allowed for 10 days)
16th - 30th day: postponement fee will be assessed
Day 30: borrower is in default
Days 45-60: The lender sends a "request" or "break" letter and the phone will start
Days 60-90: The lender sends letters and makes a phone call. A repayment plan or a loan change plan may be provided.
The 90th - 105th day: The lender holds a lawyer to inquire the loan to the loss mitigation department / foreclosure department and handle the foreclosure.
Day 90 - Note: The lender's lawyer will submit the necessary documents to the public administrator and the public administrator will submit the NED to the county clerk and recorder. Once NED is registered, property will be sold within 110 - 125 days by sale of public trustee.
Notice of sale / auction
Once NED (Notice of Election and Demand) is registered, that announcement must be posted in citizen's newspaper within the county for 5 weeks in a row. A public trustee must mail a copy of the issued notice to the homeowner within 10 days. At least 21 days prior to the sale of public fiduciaries, public managers need to inform the homeowner about how to redeem their property and how to stop selling.
If the home owner wishes to redeem the real estate and stop selling the public administrator, you must submit "Intent to Cure" to the official of the public administrator at least 15 days before the sale of the mortgagee . He then redeems the property with the current loan by noon the day before the sale.
Public trustees usually sell in court. Bidders must register in advance and obtain funds. At the time of sale, the public trustee can read the written bid submitted by the lender and the registered party can bid. A purchase certificate is handed over to the winning bidder.
Redemption period
There is no longer a redemption period for home owners after the foreclosure sale in Colorado.
How to avoid foreclosure - what is your option?
Note!
That's a tough word that most people have to think. If you do not have the money for professional assistance and are behind your mortgage a few months at the end of your rope ... foreclosure may be the only thing you can think of. It deprives you of your heart. And the feelings that you have left is still vulnerable to the coming of a vicious 'expert'. They are experts on foreclosure, but they say they are not. quit!
You may be in a difficult situation, but it is not hopeless. Foreclosure is not your only choice! My name is David Stitt. You have good news. You have choices. You can not see them now. But by the end of this short guide, your vision will be cleared and you have the choices for your future ... a good choice ... in front of you.
you are not alone! In the United States, foreclosures have consistently increased over the past few years, new foreclosures are reported every quarter, and foreclosure markets have reached record levels. You are not alone. But if you like the thousands of people who are confronted with foreclosure, you are scared and confused. I was overwhelmed by the legitimate inconvenience of foreclosure litigation. You do not know who trusts who. You warn about the disastrous consequences you face unless you are unfairly fixed to Matt by realtors or lawyers and you do not use the service. Alternatively, you may have worked with a mortgage broker. They promise worldwide or world class financing and will not provide it afterwards. And, the owner of your mortgage does not want to shake 1 trillion yen (probably after months of negotiations) when planning a more affordable payment.
After you have done all the things, I will not be surprised that I gave you a hope for a good & # 39; You may feel like resigning from accepting seizure and accepting the year of damage it will have on your credit rating. Stop again, stop! Please do not fall into despair. Things like them are not bad. There are other options as well.
I will help you when you need it.
This survival guide is exactly what that name says: a simple, nonsense-free approach for foreclosure. This was created to allow you and other homeowners to better understand the details of the foreclosure process. I believe knowledge is power ... and I hope this guide will give you the power to completely avoid foreclosure.
Once you understand the facts, you can make rational and rational decisions and then act with confidence that you are best practice for you.
On the next few pages we will look at your various options and their advantages and disadvantages. You will be given the information you need to make a well educated decision on your situation.
What is your option?
Patience
Tolerance is a payment plan that debtors negotiate with lenders if they can not make timely payments due to illness or another temporary situation. With patience, lenders can delay you short-term payments. You agree to update your account by making more payments after missing payment for several months. The problem is that the debt default default is 85% or more after initial payment. They can not continue to make a bulky payment even after the forgiveness period has ended.
Change of loan
The change in loan is a permanent change in one or more terms of the loan secured loan. This helps to catch up by reducing the monthly payment to a more affordable level. You can qualify if you can recover from financial problems and pay the new payment amount. However, the Loss Reduction Department is currently under-experienced and overworked. The story of the Nightmare has many subjects on the user, who have to keep track of the loss prevention organization and get bothered to get the pressed documents to escape expulsion. After all the troublesome things, most homeowners still refuse to help and end up with foreclosure.
Partial claim
Your lender can work with you to receive one-time payments (loans paid at the end of the mortgage) from the FHA-insurance fund to cash the mortgage. You can qualify if your loan is past due 4-12 months and you can start paying for a complete mortgage.
Deed-In-Lieu (voluntary foreclosure)
As a last resort, we can voluntarily return the property to the lender. If you are in default and you are not entitled to any of the other options, trying to sell the house before foreclosure fails and if you do not have another FHA mortgage by default, you will be qualified I can. "Foreclosure" is most likely to be reported in your credit report.
Premise of loan
This is where someone will take over your payment in exchange for your property. It is almost impossible to assume loans made since 1988.
Bankruptcy
Many debtors spend a lot of money on lawyers who submit chapter 13 bankruptcy (which is really a payment plan) that only loses their homes. Essentially you pay for a lawyer on behalf of the lender. Before acting, please understand the cost of the process and the monthly payment amount to be newly increased. Also, if you forget to make one payment, Chapter 13 is rejected and you need to submit Chapter 7. This will cost a lawyer. The assets including your home will be liquidated and the credit report will show foreclosure.
Sales of properties
If the homeowner owns the equity in the real estate, you can consider selling real estate. Housing owners receive checks when withdrawing amounts above the amount they paid and the amount paid. However, most homeowners of foreclosures have little or no capital. Please pay attention to real estate agents who can bind your wealth for months.
do nothing
When it becomes a threat of foreclosure, overdue is a prescription of disaster. Nothing will change unless you do nothing. Unless you take action, you end up with foreclosure and your credit suffers for the next 5-7 years.
Sale before sale (short sale)
The pre-mortgage sale program allows a debt default lender to sell its own house and, despite the fact that these incomes are less than the borrower's amount, the net selling price to meet the mortgage debt Is used. There are two major advantages over foreclosure. (1) You can receive a new mortgage two years after you are not 5 years old. (2) You can avoid judgment of shortage. If a house is sold at an auction, the opportunity of the mortgagee who defaulted is increased dramatically. They will have a year to come after you or sell it to others.
As you can see, there are several alternatives to consider - but you have to consider! You do not do anything by putting your head in the sand like an ostrich. Being in a denial situation is a bad situation! And as mentioned earlier, grace is a prescription for disasters.
Questions you need to ask
Questions you need to ask yourself
1. When I submit Chapter 13 bankruptcy, temporary relief from the monthly mortgage payment means I can stop foreclosure forever ... Also, I can not continue and again?
2. If I am forgiving or choose a loan payment plan, I can get temporary relief from payment I can not pay now ... I will inflate monthly payments in the future You can do it. Or will I end up with foreclosure again?
3. Can I make a payment plan if I can not pay the expenses this month? Or should I just give up my house to the lender simply by accepting a bad foreclosure of credit history?
4. If I do something now, do I have more choices? Or should we wait until the sheriff comes to my entrance?
If I consult with an experienced real estate investor, I can come across without compromising my credit from this situation ... or the only option to spend thousands of dollars for attorney fees, real estate contracts Are you going to lose my house?
Questions to ask your mortgage broker
1. Do you guarantee to terminate my loan in writing before my case comes out before the court's judge?
2. Which interest rate would you charge for?
3. How much will you charge for points?
4. What does my monthly payment compare with the current one? taller than? Low? the same?
5. How much is the total closing cost?
Questions to consult a lawyer
1. If I apply for bankruptcy in Chapter 13, will we stop or stop the foreclosure?
2. How much is the handling fee for submitting bankruptcy filing and processing my case?
3. What does my monthly payment compare with the current one? taller than? Low? the same?
4. What happens if my payment defaults because I can not pay?
5. I went bankrupt in the court and can not save thousands of dollars?
Questions to Ask Your Real Estate Agent
1. Do you guarantee in writing that my house will be sold before a lawsuit occurs in a court judge?
2. If I find myself wanting to buy a house, do I have to pay a fee?
3. If you lose it to lose it because of judgment of the judge if you are not selling the house, how much will you owe you?
4. If the sale price does not cover my debt and your duties, do I need to reach for my pocket?
5. How long do you sign up for your listing deal and make you eligible for the fee?
Question to ask your foreclosure lender
1. Can you work with me with a payment plan (patience)? Will I put everything in writing before agreeing to it?
2. If I agree with these terms, do you agree in writing to stop foreclosure?
3. What is my monthly payment compared to the current one? taller than? Low? the same?
4. If you are late for this payment plan, will you start with stopping foreclosure?
5. Tolerance means that the monthly payment will increase significantly, so I can not afford to pay monthly so please tell me how many people will be foreclosed.
What to do now
Step 1: Obtain an answer to your question.
In addition to requiring answers to the questions above you may have other questions asking yourself. Do not be intimidated by a specialist. You are consulting. Do not forget to work for you
Step 2: Please make a decision and follow it!
Once you know the facts, you can decide how to proceed and who needs to help you. The more you act quickly, the faster you can turn the spiral back and change the credit quality from bad to good.
Step 3: Act now!
If you feel that you finish your homework and make an information-based decision, you will be on the way. Inertia should not enter. Please do not proceed. Please ACT right now before your window closes.
The last thing to consider: take forensic loan review!
Most of the loans made in the last decade, especially subprime and floating rate mortgage loans were not done properly, and there were mistakes and violations.
A forensic loan audit is the first step in properly preparing all kinds of litigation or any type of solution when dealing with lenders. Auditing is used as a valuable tool to place files on the top of the lender's mountain and hear and notice your case!
Once you find many violations in your mortgage, you must discuss your case against your lender. Because millions of homeowners are demanding financial solutions, it becomes increasingly difficult to obtain the necessary results when needed. You need all the tools, all the possible amounts of leakage! A forensic loan audit is a tool for that!
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