Certified Distressed Property Expert of Colorado

Please contact us for a no-obligation personal consultation.

There are many options open to homeowners to avoid foreclosure, including:

• SHORT SALE: Negotiate with bank to accept sale under loan amount.  This is the most common situation and one of the better solutions for homeowners in distress.
• REINSTATEMENT: Bring the loan current and restore the loan per the original terms. This can be difficult if the homeowner is experiencing financial hardship and the situation doesn’t appear to be improving.
• FORBEARANCE: Temporary repayment plan until the property is sold or missed payments are paid in full.  Again, this can be difficult if the homeowner’s financial situation is not improving.
• REFINANCE: New loan with reduction in monthly payments.  This can be difficult if the homeowner is falling farther behind on other bills and obligations.  Also, the value of the property may be less than the current loan balance.
• LOAN MODIFICATION: Modify original loan terms to make the loan affordable.  This requires careful negotiations between the lender and homeowner and only a fraction of loan modifications are approved.
• SELL THE PROPERTY: Use equity to payoff or pay difference.  This may not be possible if the value of the property is less than the loan amount due.  Can be long selling period, property repairs required or other issues beyond the control of the homeowner.
• RENT THE PROPERTY: Make the loan current and then convert the property into a rental property.  This requires the homeowner to move and may not be possible if the homeowner has financial hardship or other issues that can make renting a property difficult.  Also, the homeowner will have to perform the duties of a property manager or hire a property manager-We can help you with this.
• DEED IN LIEU OF FORECLOSURE: “friendly foreclosure”.  This is when the homeowner returns the keys and “deed” the property back to the lender.  This can result in significant financial and tax liability for the homeowner.
• BANKRUPTCY: Will stall foreclosure but not prevent it.  The homeowner is still responsible for the property loan and missed payments are still due.  The bankruptcy only postpones the foreclosure process; it does not stop foreclosure.
• SELL TO AN INVESTOR: Sell or deed your property to an investor or 3rd party can cause bigger problems. Investors are looking to “take your deed” but leave you on the hook for the loan.  It is similar to you signing for a car loan for a complete stranger, and then the stranger drives off with the car and promises to pay the loan.  If the investor fails to pay the loan, you get stuck with the bad debt and the tax and legal consequences.  The result can be even more severe than if you did nothing!  Please call me or your attorney before you sign anything!

CAUTION: There are many “investors” or people that offer a solution to families that are having financial trouble and facing foreclosure.  Before you sign any contract, deed, power of attorney or other documents, consult your attorney or real estate professional.  NEVER, NEVER, NEVER sign over a “deed” without consulting a professional that is looking out for your interest!  (Never!)

Typically, an investor will promise homeowners that they will save your property (or eliminate your problem) quickly.  The investor will usually have you sign away your property in exchange for a quick fix, but the legal and tax issues that they can create can do more harm than good.

Another “trick” investors are using is to have you “deed” over your property, with the promise of letting you pay back the “loan” and get your property back.  Chances are, your credit is shot, and getting a loan less than 3 years after bankruptcy/foreclosure is almost impossible.  The investor will then evict you for a single missed payment and now you have no home, no equity and no recourse!  Beware!  Call and let us help you avoid this problem.

Help is Available: Call for a free consultation before you sign anything with an “investor” or person promising to help you and your family.

We do not advise that you sell your property to an “investor” without first placing the property on the market with a real estate professional (even if it is on the MLS for only for 1 or 2 weeks).  Remember, investors are looking for a “deal” and that usually means the homeowner has to part with equity and could end up with a hefty bill from the lender and/or the IRS.  And the lender may even pursue a “deficiency” judgment against the homeowner-compounding the problem before AND after a foreclosure.

Discreet and Confidential: Help at no-cost to you.  Let us consult with you before you turn over your property to an “investor”.  There is no fee for a consultation.  If we believe that the best solution is to sell to an investor, we will tell you.

For Additional Help Contact the Colorado Foreclosure Hotline at 1-877-601-HOPE or http://www.ColoradoForeclosureHotline.org