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If you are behind on your mortgage payments, a foreclosure sale may be the next step taken by your mortgage lender to recoup their losses. Even when a looming foreclosure is expected, there are few situations more stressful than getting a foreclosure notice on your home. If you have received a foreclosure notice, you will want to speak to an attorney immediately to understand your options.
When you buy a residential property in Thornton, you will sign two documents. The first is a promissory note, which is the contract that states your intention to pay back the loan as well as the details on how that loan will be repaid. The second document is a deed of trust, which gives the mortgage lender a security interest in the home. This also includes a power of sale clause that can be utilized in the event of foreclosure. If you do not make the payments agreed upon in the promissory note, they can activate the power of sale clause to sell your home and recoup their losses.
In general, the process of missing a mortgage payment is the same in Colorado as it is across the United States. If you miss a payment, there will typically be an initial grace period. Once the grace period has passed, you will incur a penalty in the form of a late fee. If you miss several payments, they begin to add up quickly. To collect payments, the mortgage lender is legally obligated to disclose “loss mitigation” options no later than 36 days after a payment has been missed.
If you still cannot pay, you will then be sent a breach letter. The breach letter notifies you that the loan is in default, and you’ll be informed of the steps you need to take in order to avoid foreclosure. If you cannot make a payment, the mortgage lender will begin the foreclosure process.
Colorado has many laws governing foreclosures, one of which is the requirement of a pre-foreclosure notice. This notice must be provided at least 30 days before filing a Notice of Election And Demand and a minimum of 30 days after the initial mortgage default. The lender must also provide the number for Colorado’s foreclosure hotline, which ensures that the foreclosure is legitimate. They will also help you review your circumstances and outline potential options. Next, they will legally need to provide you with a phone number for their loss mitigation representative.
If you are facing a foreclosure on your home, the first step is to work with the loss mitigation department associated with your lender. They can help you put together a payment plan to catch up and get back on track, potentially avoiding foreclosure altogether. However, if you find yourself unable to pay, your next best course of action is to speak with a bankruptcy attorney. An Adams County bankruptcy attorney can review your financial situation and determine what the best course of action to take may be.
Every homeowner facing foreclosure has unique circumstances, so there is no one-size-fits-all recommendation. There are two primary types of bankruptcy considered when facing home foreclosure in Adams County, Chapter 7 bankruptcy and Chapter 13 bankruptcy. Both types of bankruptcy are laid out by U.S. Code Title 11 and can help individuals facing overwhelming debts and home foreclosure. To determine if either option is right for you, the recommended course of action is to speak with Adams County bankruptcy attorneys focusing on Chapter 7 and Chapter 13 cases.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, involves assets being liquidated in order to pay off debts. If you are facing home foreclosure and decide to file for Chapter 7 bankruptcy, there will be a temporary stop placed on the foreclosure. To make the stop permanent, you will need to catch up on your mortgage payments by the end of the Chapter 7 filing. Chapter 7 bankruptcy processes usually take a period of around 4-6 months. Do note that your mortgage letter will still have a lien on your home, which cannot be discharged during any bankruptcy filing.
Chapter 13 bankruptcy, also known as “reorganization bankruptcy”, is a system where you work with creditors to pay off your debt. This is typically the best option for people facing foreclosure. The laws around Chapter 13, unlike Chapter 7, allow you to include your past-due mortgage payments as part of your bankruptcy filing. Chapter 13 puts all of your debts into a single payment, making it a viable option for working Thornton residents. Make sure before proceeding with any filing to speak to a Bankruptcy lawyer in Thornton, Colorado for the best course of action for your circumstances.
The best thing you can do when you are facing a home foreclosure is to speak with an Adams County bankruptcy attorney. With an extensive knowledge of foreclosure laws and their intricacies, there are many ways they can help clients to understand all legal options in order to make the most informed decisions. Bankruptcy attorneys guide you through the complicated process of filing for bankruptcy from the first step until the last. Your Thornton bankruptcy attorney makes sure that you have all your debts covered.
If you are concerned about a home foreclosure in Adams County, speak with a local bankruptcy attorney to explore your options. You don’t have to lose your home; an attorney can help you to find a way out.