You are delinquent on your loan when your payment is late by one day.
If you still haven’t paid in 30 days then the borrower is considered to have defaulted on the loan. Although non-government issued loans can be foreclosed on immediately by defaulting, usually lenders will follow Federal Housing Administration (FHA) loan rules and wait until 3 payments have been missed, though not always. For example, if you missed your October 1st payment, on January 1st the lender will start foreclosure proceedings. TOP^
Yes. You can start by calling your lender’s Loss Mitigation Department or the Colorado Foreclosure Hotline at 1-877-601-HOPE.
Explain your situation and why you are unable to make your payments. Have your financial information ready when you make the call (income, expenses, loan documents etc.).
Do not move out of your home until you absolutely must, because you may not be qualified for assistance if you abandon your property. There are a number of alternatives you and your lender may be able to work out other than foreclosure. Again, do not abandon the home, as this may lead to more problems for you in the future. TOP^
Foreclosure is the process by which the lender takes control of the home, and it is a process rather than any one event. After you have defaulted, your lender will file a “Notice of Election” and “Demand for Sale” with your county’s Public Trustee. Other documents are required to file and details can be found in the Colorado Revised Statutes under Title 38-38-101. TOP^
Yes. After the “Notice of Election” and “Demand for Sale” are filed, a notice must be published and run for 5 consecutive weeks in “general circulation” paper in the county where the property is located. The Public Trustee must also mail multiple notices to the house being foreclosed on (a description of these notices can be found in Colorado Revised Statutes under Title 38-38-101). TOP^
The sale must take place 45-60 days after the County Clerk and Recorder records the “Notice and Demand” for sale. You have until that time is over to attempt to identify a remedy if you want to keep your home.
On average you have 5 months after your loan is delinquent to fix the situation. Accordingly, if you missed a payment on October 1st, you have until March 1st to make arrangements, otherwise you will likely loose your home. TOP^
You have the option to file an “Intent to Cure” which is a document that states that you will pay back the amount you owe with the Public Trustee’s office at least 15 days before the scheduled sale date. You then must pay back the full amount you owe by Noon the day before the scheduled sale date.
Another option is to delay the foreclosure process at the “Rule 120 Hearing” which legally establishes that the lender has the right to foreclose on and sell the home at public auction. TOP^
Yes. There is a 75 day waiting period after the house is purchased and before the purchaser can take ownership. You have this time to pay back the amount the house was sold for at auction plus all fees.
To take advantage of this time, you must file an “Intent to Redeem” notice with the Public Trustee’s office at least 15 days before the 75 day waiting period whereby the new owner takes occupancy of the home. So, if the sale date was March 1st, you have until May 1st to file the notice and until May 15th to pay your lender. TOP^
Possibly. If the amount of your loan is more than your house is worth, you will be required to pay the difference. Also, if you abandon your home and do not work out an arrangement with your lender before leaving, you may still owe money on the house. TOP^