Colorado foreclosure is getting ready to start again. The foreclosure moratorium due to COVID-19 ends on July 31, 2021. This means if you haven’t been making your mortgage payments for at least 90 days, then your lender can take and sell your home. Colorado faces one of the highest rates of foreclosure or eviction. High housing costs, the end to the moratorium on foreclosures/evictions, and prolonged unemployment, have many Americans worried about keeping a roof over their heads. According to Mountain High CRE, analysts found that 40.1 percent of Colorado residents are at risk of foreclosure or eviction.
What are Your Options if You’re Facing a Colorado Foreclosure?
Your first option is to find a new place to live. However, that’s easier said than down. Many landlords do not rent to people who lost their home to foreclosure. This is because the renter is deemed to high of a risk. Think about it. If the renter lost their home, how likely are they to make monthly rent payments. I know it seems harsh, but it’s reality. And this assumes you can even find a place to rent given the large amount of people moving to Colorado.
The second option is to contact the lender and do a loan modification. Loan modifications were very popular during The Great Recession as a way for people to keep their homes. However, the real estate market has changed dramatically since then. Back then, homes were underwater. Meaning, the loan amount was higher than the home’s value. As such, the banks didn’t want the property as it would result in a loss at a time they were heavily regulated. Now, however, home values are strong given the low supply of houses. This means the banks are not as willing to modify the loan as they can do a Colorado foreclosure and get all of their money back.
The third option is bankruptcy. Really? Yes, really. Under a chapter 13 bankruptcy, you can repay your missed mortgage payments and keep your home. This is a great solution for someone who feel behind during the pandemic due to loss of employment, but now are able to resume their mortgage payments.
Contact Colorado Debt Help to Save Your Home from Colorado Foreclosure
Colorado Debt Help can assist you with filing a chapter 13 to stop your foreclosure. If you want to keep your home, then contact Colorado Debt Help and schedule a free consultation. Colorado Debt Help is here to help you keep your home.
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