Having a home repossessed by a lender through the legal process of foreclosure can be hard on a Colorado family. However, individuals who are forced into this difficult process may be unaware that foreclosure can leave them with unexpected financial consequences once the process has completed. This post will touch on some of the issues people may have to deal with after foreclosure but readers are reminded that this post offers no legal advice.
Owning a home is, for many in Colorado, the "American Dream." People will spend years saving for a down payment so that they can take out a loan to purchase the home they hope to live in for years to come. Yet, they need to understand that taking out a mortgage entails certain obligations.
When a person in Colorado is facing foreclosure, it can be incredibly stressful. After all, that person may have tried selling the home at a price that would allow them to pay off their mortgage, but could not find a willing buyer, especially if the value of the home is less than what is owed on it. And, losing one's home to foreclosure can be a terrible blow that only exacerbates a person's financial troubles. If a person finds themselves facing foreclosure, they may have some options for stopping the foreclosure process. One of these options is a short-sale.
Those facing foreclosure may feel desperate. So, when they are presented with a loan modification opportunity, it may seem like an offer that is too good to be true. However, sometimes these offers are actually scams that homeowners need to be aware of.
When a person in Colorado is facing the possibility of foreclosure, their lender may first try to collect on the debt in a variety of ways. However, debt collectors cannot try to collect on the debt by any means possible. Under the Fair Debt Collection Practices Act, debt collectors are limited in what measures they can take to try to collect on the debt. However, one question that is currently the subject of an on-going lawsuit is whether the Act protects debtors in non-court foreclosure proceedings.
Hard financial times can fall upon just about any Coloradan. Hard times are not necessarily a person's fault, but that does not make them any easier to deal with. People often have to make tough decisions. Do they pay the electric bill or pay for their prescriptions? Will they have enough gas in the car and food on their table to last until the next payday? Sometimes, people find that they are totally unable to pay their mortgage, and they may fear losing their home. They may wonder if there are ways to stop home foreclosure.