Frequently Asked Questions
How fast can a foreclosure happen?
A foreclosure can take place in less than 6 months from the time that the loan becomes delinquent. Meaning as soon as you miss a mortgage payment, normally two payments, the lender can send out the Notice of Default. Once the Notice of Default has been recorded, foreclosure can be completed in less than four months. In Colorado the process is unique as the governor appoints a “Public Trustee” who presents the homeowner with a Notice of Election and Demand and subsequently publishes that information in the local newspaper. Once those actions have taken place the foreclosure process is in motion.
How do I stop a foreclosure from happening?
The easiest way is to bring the loan current by paying back all the delinquent amounts, including costs and fees by the mortgage company to file and process the foreclosure. This however is not an option for many of us and even if you are well into the foreclosure process, many lenders are willing to work with you by granting additional time to remedy the situation.
What are my options?
The first thing you should do is contact a HUD certified non-profit housing counseling agency, like Southwest Improvement Council (SWIC), to work with you as an independent third party. Contact SWIC to set up a counseling meeting to learn exactly what your options are, as they vary on an individual basis.
Who is SWIC?
The Southwest Improvement Council, or SWIC, is a non-profit organization that helps identify various programs that may become available to the borrower. We sit down with you and help to determine your options. SWIC and its housing counselors simply lay out your options whether it is a forbearance agreement, refinancing through the Home Affordable Refinance Program (HARP), a repayment plan, reinstatement, Deed-in-lieu of Foreclosure or Short Sale.
How much does this cost?
SWIC’s non-profit services come as absolutely no cost to you.
Do I have to be behind in my mortgage payments to apply for any of these programs?
No, you may still apply for some of these programs as long as you are able to provide a hardship. A hardship may be the result of loss of income, unstable income, lack of funds, no employment, excess debt, medical or other reasons. If you have suffered a hardship but have still been able to stay current on your payments, there are still options available to you.
Who can apply?
Anyone whose name is listed as a borrower on the mortgage may come and receive services from SWIC. Even if the property you are having difficulties with is a rental, there are still options. There are also options for those with 2nd mortgages but those are much more limited. We will help sort out all options.
Am I liable for the debt once my home has been foreclosed?
Colorado is a deficiency judgment state which allows lenders to come after the additional amount due after the home has been foreclosed. Therefore, the borrower may be liable for the deficiency amount due which could result in garnished wages. Contact SWIC today, to make sure you are protected! Time is of the essence when it comes to avoiding foreclosure.