Helping People Help Themselves

Call the Foreclosure Prevention

444-8833

The Pikes Peak Foreclosure Prevention Partnership, Inc. is a non-profit corporation working to alleviate the area's foreclosure crisis.  The information here will acquaint you with steps which can be taken and the agencies which may be able to help you prevent foreclosure.  The information contained herein is general in nature and subject to change.

Foreclosure and You

What Can You Do

What are the Steps to Prevent Foreclosure?

Who can I call for help?

Foreclosure Sequence


P.O. Box 535
Colorado Springs,
Colorado  80901

 Don't Delay.  Time is of the essence.  Don't wait until you are several payments past due before seeking help. Statistics show that those who seek help before they are 90 days past due on a mortgage payment have a 75 percent chance of saving their home.

FORECLOSURE AND YOU

The foreclosure process takes a minimum of four months from the time that the lender decides to start foreclosure.  Keep in mind that you still own the property until the foreclosure process is completed.  Therefore, it is in your best interest to check into the options available to you to prevent the foreclosure, as well as options available during the foreclosure.

WHAT YOU CAN DO

Lenders are in the business of making loans, not owning real estate; therefore, they do not want to foreclose unless necessary.  It is extremely important to act as soon as you experience financial difficulties.

bulletContact your mortgage company immediately.  Be honest and explain your financial        situation.  Be sincere and request that they help you with a suitable work-out arrangement       until you can resume normal monthly payments.
bulletAlways keep accurate records of the date, time, individual, and a summary of all         conversations that you have with your lender.  Include your account number on all letters          sent to your mortgage company, and keep copies of such letters.
bulletBefore approaching your lender, prepare a payment plan that is reasonable and will work             for you, and present the plan to the lender.  Do not agree to any payment plan that you              will not be able to handle.  Whatever plan is agreed upon, make sure that the payments             are made according to the plan.
bulletDon't ignore mail from your lender.  Read and than reply as soon as possible to all   correspondence concerning your loan.
bulletIf the individual with whom you are dealing with at the mortgage company is uncooperative,        ask to speak to the supervisor.  In addition, explore some alternatives with a knowledgeable person, such as a representative from one of the organizations listed in this web page.  Ask that the person to represent your situation to your lender on your behalf.
bulletContact a financial counselor to help you analyze your financial situation.
bulletContact an attorney who specializes in real estate law to check out your legal rights.

Steps to prevent foreclosure

FORECLOSURE SEQUENCE

  1. If you are behind on your mortgage payments, and consequently in default on your loan, it is possible that the lender may begin foreclosure proceedings at any time.
  2. The lender or their attorney will file a foreclosure notice, called a "Notice of Election and Demand", with the county public trustee.
  3. You will receive a notice from the public trustee which will advise you of the foreclosure, disclose the sale date, and explain to you your "Right to Cure the Default".  Your right to cure the default allows you to stop the foreclosure by paying the amount what you are behind plus any attorney fees and foreclosure costs.  You must file a "Notice of Intent to Cure" with the public trustee at least seven days before the sale date, and pay the amount due no later than noon on the day before the sale.
  4. The foreclosure sale is held 45 to 60 days from the time that the trustee receives the foreclosure notice.
    Once the sale is completed, you no longer have the right to cure the default; however, you may still have time to "redeem" your property.
  5. You may still have 75 days after the foreclosure sale (six months, if agricultural property) to exercise your redemption rights, which allow you to pay off the amount bid at sale plus certain allowable costs (may be your fully accelerated loan amount).  By exercising these rights, you may save your home and equity from the foreclosure process.  (Note: HUD loans may restrict your redemption rights.)