When facing foreclosure, it is essential to understand your options. It goes without saying that foreclosure can be a very stressful event for any homeowner., Fortunately, there are ways to protect yourself and your home. Our Colorado bankruptcy team goes over the different types of foreclosure defenses available to homeowners and how we can help you keep your home!
How Can I Save My Home?
The state of Colorado has had many homeowners walk away from their homes (and mortgages) when owing more on the home than what it is currently worth (such as when the house is "upside-down"). Many may find themselves in financial distress for a myriad of reasons, such as:
- reduced income or job loss,
- medical bills,
- student loans,
- car breaking down
- unexpected emergencies, etc.
Unfortunately, many Americans live on a paycheck-to-paycheck basis so these sorts of situations are not unusual. We will explore common options to save your home from foreclosure.
Colorado Owner Bill of Rights
Colorado's homeowner bill of rights is a term that was given to a law enacted to help define and outline the role of the homeowners' organization of what they can or can't do – of any community organization. That could be a homeowners association, a condo association, or a townhome association. Basically, it laid out different policies that these associations must adopt.
For example, the lender must give the homeowner a notice of their right to cure before starting foreclosure. The lender must also provide the homeowner with certain documents during foreclosure. If you are facing foreclosure in Colorado, you should contact a foreclosure defense attorney to discuss your rights under this law.
Foreclosure defense comes in many forms, but reinstatement is the most common. This is when the homeowner catches up on the past-due payments plus any fees and costs associated with the foreclosure. The benefit of this foreclosure defense is that it allows the homeowner to keep their home. However, finding all the money owed at once can be challenging. Mortgage litigation is another form of foreclosure defense used in Colorado. This involves suing the lender for violating state or federal law during the loan origination or foreclosure. If the homeowner can prove that the lender violated the law, they may be able to stop the foreclosure and keep their home.
Filing for Bankruptcy to Stop Foreclosure
Filing for bankruptcy is another way to stop foreclosure. This can be done by filing a Chapter 7 or Chapter 13 bankruptcy. Filing for bankruptcy will put an automatic stay on the foreclosure process and give you time to catch up on your mortgage payments. It is important to note that you will still owe the mortgage after bankruptcy, but the automatic stay will give you time to get current.
Not only does bankruptcy assist in stopping foreclosure efforts but it will also help you to get rid of other debts such as:
- credit card debt,
- medical bills,
- and personal loans.
This will allow you to focus on your mortgage and save your home. If you are facing foreclosure in Colorado, you should contact a foreclosure defense attorney to discuss your rights under this law.
Contact Our Colorado Foreclosure Defense Team Today
If you are facing foreclosure in Colorado, our team can help. An individualized analysis of your mortgage foreclosure situation will be provided during a free initial consultation with an experienced foreclosure defense lawyer at Wagner Law Office, P.C.. Foreclosure is a complex and stressful process; you do not have to go at it alone. Don't hesitate to contact our office today to schedule a consultation.
If you are facing foreclosure, we can help. Don't hesitate to contact us today through our website or give us a call at (303) 536-5124 to schedule a consultation.