In the first quarter of 2009 the country had a record amount of foreclosures, with over 800,000 total foreclosures. This was due to several reasons: 1)High levels of unemployment 2)Low interest adjustable rate mortgages 3)Down turn of the Real Estate market 4)Banks making it harder to get a loan With more and more home owners facing the prospect of foreclosure it is important that home owners know what the law says about foreclosure and how they may be able to avoid it. Mortgage laws vary from state to state. The laws in Colorado state the following: In Colorado, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. Judicial Foreclosure Colorado practices the judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder. Using this type of foreclosure process, lenders may seek a deficiency judgment and under certain circumstances, the borrower may have up to one year to redeem the property. The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Power of Sale Foreclosure Guidelines The foreclosure process in Colorado is quite a bit different than in other states because here, the governor appoints a "Public Trustee" for each county in the state. The trustee must act as an impartial party when handling a power of sale foreclosure. In Colorado, the non-judicial power of sale foreclosure is carried out as follows: The process begins when the attorney representing the lender files the required documents with the Office of the Public Trustee of the county where the property is located. The Public Trustee then files a "Notice of Election and Demand" with the county clerk and recorder of the county. Once recorded, the notice must be published in a newspaper of general circulation within the county where the property is located for a period of five consecutive weeks. The Public Trustee must also mail, within ten days after the publication of the notice of election and demand for sale, a copy of the same and a notice of sale as published in the newspaper, to the borrower and any owner or claimant of record, at the address given in the recorded instrument. The Public Trustee must also mail, at lease twenty-one days before the foreclosure sale, a notice to the borrower describing how to redeem the property. The owner of the property may stop the foreclosure proceedings by filing an "Intent to Cure" with the Public Trustee's office at least fifteen days prior to the foreclosure sale and then paying the necessary amount to bring the loan current by noon the day before the foreclosure sale is scheduled. The foreclosure sale must take place between forty-five and sixty days after the recording of the election and demand for sale with the county clerk and recorder. The Public Trustee may hold the sale at any entrance to the courthouse, unless other provisions were made in the deed of trust. The lender has the option to file a suit for deficiency in Colorado and the borrower has up to seventy five days after the sale to redeem the property by paying the foreclosure sale amount, plus interest. How to possibly avoid foreclosure A loan modification can in many cases be the answer to the problem. Like anything else there are benefits and disadvantages to a mortgage modification. We have compiled a list of the advantages and disadvantages for you to consider. ADVANTAGES: A successful Loan Modification will supply you with the following: 1. an interest rate reduction. Under President Obama's current program this rate may be as low as 2 off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit our website Saint Jude's Mortgage Rescue
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