According to RealtyTrac, there were 494 foreclosure filings in September 2009 against Colorado Springs home owners. This takes the total to about 29,511 active Colorado Springs foreclosures.
One of the questions that we hear a lot is:
When Do I Need to Move Out of my Colorado Springs Home That is in Foreclosure?
Since there are almost 30,000 Colorado Springs foreclosures, then this question MUST be being asked a lot.
Read the Full Report: My Colorado Springs Home is in Foreclosure. When Do I Need to Move Out?
GOOD NEWS: Just because you fall behind on your mortgage payment, and cannot catch up, does NOT mean that you need to move out immediately.
In fact, you may have up to 7 months to stay in your home before you need to move out!*
Let’s understand the foreclosure process in Colorado**:
- You are a few days late on your mortgage payment (but less than 30 days). This means that you are DELINQUENT. You do not need to move out.
- Once you become 30 days late, you are in DEFAULT. (Usually this is because you are in a financial situation that has made it difficult for you to keep up on your bills – NOT because you just “don’t want to” pay your mortgage.) You do not need to move out.
- During this time, you may qualify for either a loan modification (where the lender changes the terms of your loan to accommodate your current financial situation) or they may agree to work with you to catch up on your payments a different way. The ONLY way that his can happen is if you ASK THEM and explain your financial situation – and why you have been unable to pay. Right now, banks and lenders are more than willing to work with people to get caught up on their mortgages, as long as they know what is going on in your life that is causing you to miss payments …
- If your loan is an FHA loan, it will become a FORECLOSURE after 3 missed payments. If your loan is NOT an FHA loan, then the lender can decide to start the foreclosure process the MINUTE you miss just ONE payment. This just means that the lender has transferred your “file” to foreclosure attorneys to start processing it to be sold at the public auction. You do not need to move out.
- Once your “file” has been transferred from the attorney to the Public Trustee, your home will be placed on the Election and Demand list, with a date that the home will be auctioned off. This date is generally between 110-125 days in the future (roughly 3-4 months). [FIND YOUR FORECLOSURE DATE HERE] This is also when you will start getting a bunch of mail from both real estate agents and investors asking you to sell your home. [Beware of Foreclosure Assistance Scams!] You do not need to move out.
- If you do not catch up on your mortgage (which will include all your missed payments, late fees and legal fees) OR if you do not CURE the loan through selling your home (or short-selling the home – see below***), then your home will be SOLD AT THE PUBLIC AUCTION on the date posted by the Public Trustee. MOVE OUT BEFORE THIS DATE or you will be evicted. (Should this be the option you take, consider asking your bank for a “Cash for Keys” option, where they may give you a few hundred bucks to leave the property on time and in decent shape.)
Based on this information, you could possibly live in your home for up to another 7 months after your 1st missed payment, before HAVING TO MOVE. Use this time to save your money to get into another home.
More Questions? Contact us for a free, no-obligation,
PRIVATE consultation regarding your situation: 719.434.7525
Now, there are options that could both have you AVOID foreclosure AND stay in your home even longer.
*Please contact a real estate attorney to see how this does or does not apply to you.
** The foreclosure process difffers from state to state so PLEASE contact a local real estate attorney to fully understand YOUR local timeframe.
We are Certified Distressed Property – Colorado Springs Short Sale Experts and know how to help you.
Contact us: 719.434.7525 or ShortSaleHelp@wagneriteam.com
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Hope Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
(719) 434-7525
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Mariana, it's great to see informative posts like this one for homeowners. I think all parties involved would fare better if the homeowners stayed as long as possible and kept up with the maintenance of the home. A vacant foreclosure is just an open invitation for vandalism, deterioration and unwanted critters moving in.