Bank of America (BOA) announced they will resume foreclosures in Colorado very soon. They temporarily stopped foreclosures nationwide on October 8th amid allegations that bank employees signed but didn’t read documents that may have contained errors. BOA says they have a legal right to foreclose despite accusations that documents used in the process were flawed. Some folks think that this move by the nation’s biggest bank could give way to an industry-wide effort to push ahead with all foreclosures that have been stopped.
This can be a tricky spot for people behind on their payments. If that is you or you know someone who is in that situation, here are a few things to remember:
1. They Want You to Keep Your Home – Foreclosures are expensive for lenders and often net them less money than the alternatives. Give them a call and see if they have any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary.
2. If a Modification Doesn’t Work, A Short Sale Could Be Better Than Walking Away
When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:
- Your property is worth less than the total mortgage you owe on it.
- You have a financial hardship, such as a job loss or major medical bills.
- You have contacted your lender and it is willing to entertain a short sale
If you would like more information on short sales please read my posts on Short Selling A Home In Denver CO and email or call me if you would like some help.
3. Whatever You Do, Do SOMETHING! – The worst thing you can do is ignore it and do nothing. Eventually it will catch up to you and they will evict you once the foreclosure goes through if you are still in the home. There are options and resources for you so please use them. I don’t want you and your family to be one of the sad eviction stories when it can be avoided an there is help available for you!