Nobody wants a Colorado Springs foreclosure on their permanent credit record. Nobody wants the stigma of a "Bank Owned" sign in the yard of a place they once called "home". Nobody wants to live in fear that any moment someone will knock on their door and kick them and their family out on the streets.

But there are a lot of people who bought Colorado Springs homes over the past few years that can no longer afford their home. Maybe this is you.

Reasons for a Colorado Springs Foreclosure

There are many reasons why someone cannot afford their mortgage payment. Some reasons include:

• Major illness or death of of a household wage-earner
• Illness or death of a family member resulting in thousands of dollars in medical bills
• Divorce
• Bankruptcy
• Loss or outsourcing of Job
• Downsized in current job resulting in a cut in pay
• Mortgage rate increase resulting in a payment that is no longer affordable

These are all valid and completely understandable reasons WHY someone may not be able to afford their mortgage payment any longer, and may be facing a Colorado Springs foreclosure.

"How Can I Avoid Foreclosure in Colorado Springs?"

If you are not able to keep up with your mortgage payments, or maybe you are already falling behind on your payments, you don't have to be a victim of foreclosure. There are several ways that you can avoid a Colorado Springs foreclosure, but you will need to be proactive and start working on it today.

Read Also: Foreclosure SUCKS - You Have Options

Top 3 Ways to Avoid Foreclosure in Colorado Springs

#1 Catch Up On Your Payments

If you can actually afford your monthly payment, but have fallen behind on your payments due to unexpected one-time circumstance, like a family emergency or a gap in employment, catching up is a great option. There are 2 main ways to catch up on your late mortgage payments:

• Pay it Back All At Once: Use a Holiday Bonus, family gift or a Tax Refund check to pay your past due balance in full.
• Forbearance- If you are more than a couple months behind on your mortgage payments, your lender may have started the foreclosure process. However, they may be willing to STOP the foreclosure process if you agree to (and qualify for) a forbearance. A forbearance is an agreement between the borrower (homeowner) and the lender to pay back the past due amount over a period of about 3-9 months. Usually this happens by breaking down the past due amount and tacking a portion of that amount to the current mortgage payment each month until the past due amount is paid in full. You will need to talk to your lender to see if/how you could qualify for this.

#2 Refinance or Re-Structure Your Current Loan

If you have not missed any payments, but know that you will not be able to afford your payments after a certain date (mortgage rate increase, ARM adjustment, loss or downsize of job), then you may be able to qualify for a refinance or a re-structure of your current loan. You MUST have good credit for this option, and (in most cases) cannot have missed a mortgage payment.

• Refinance - If your good credit is still in tact, and you have not missed any payments yet, you may be able to refinance your current loan into a lower, fixed-rate loan that could lower AND stabilize your monthly payments. You will need to contact a reputable lender or bank ASAP to take care of this before you miss a payment.
• Re-Structure - Some lenders are allowing borrowers (home owners) to restructure their current loan to include adjusting the interest rate and/or the term. THis could make the monthly payments more affordable, and allow you to stay in your home and avoid foreclosure.

#3 Sell Your Home

If catching up on your payments or refinancing your loan is not an option, selling your home is a great way to avoid a Colorado Springs foreclosure. There are two ways to sell your home, but in either case, you will need to ACT FAST to make sure that your home SELLS before it forecloses.

• Sell Your Home For What You Owe - If you owe LESS than what the home could quickly sell for (including all the fees it takes to sell the home) you can hire a Colorado Springs real estate agent to:
  • Get your home on the market immediately
  • Price your home agressively to sell in the shortest amount of time.
  • Market your home extensively - both online and offline
• Sell Your Home for LESS Than You Owe (This is called a Short Sale) - If you have have fallen into distressed circumstances or can no longer afford the payment on your Colorado Springs home (See Above List: Reasons for a Colorado Springs Foreclosure), AND you owe more than your home could sell for AND you can hire Colorado Springs Short Sale Experts REALTORS® to handle the sale of your home ... This may be an EXCELLENT option.
  Read Also: Why a Colorado Springs Short Sale is a Great Alternative to Foreclosure

For More Information on how to qualify for a Colorado Springs Short Sale, Contact Us:
Wagner iTeam - Certified Distressed Property Colorado Springs Short Sale Experts
719.434.7525

As you can see, these 3 alternatives actually offer 6 different options. With all these options, you have a great opportunity to move on with your life and avoid foreclosure in Colorado Springs.

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate

(719) 434-7525

The Manitou Springs real estate market report for October 2008 includes the all areas of Manitou Springs which is located west of Colorado Springs in the Rocky Mountain foothills.Manitou Springs is known for its rich history and unique setting.

Single Family Manitou Springs Homes

• Active homes for sale: 48 (10 new listings in October)
• Homes sold in October 2008: 7
• Average Sale Price: $220,085
• Median Sale Price: $233,000
• Average Days on Market: 30 days
• Average Sale Price/List Price: 95.9%

Townhomes, Condos and lofts in Manitou Springs

• Active homes for sale: 20 (NO new listings in October)
• NO SALES in October 2008
• Featured Homes for Sale in Manitou Springs (call for details 719.434.7525):
  • 102 Navajo
  • 833 Shoshone

Search All Homes for Sale in Manitou Springs

"Based on information from the Pikes Peak REALTOR Services Corp. ("RSC"), for the period October 1-31, 2008. RSC does not guarantee or is in any way responsible for its accuracy.  Data maintained by RSC may not reflect all real estate activity in the market."

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
(719) 434-7525

The Colorado Springs real estate market, like the rest of the nation, has seen a HUGE shake up in the mortgage industry. Less people qualify for home loans and refinances are harder to get (which has led to an increase in Colorado Springs foreclosures).

Many people that we have talked to lately, are under the (mistaken) impression that there are very few loan options for first time home buyers. This is not true. Although loans ARE harder to get than they were several years ago (and for good reason), there are some GREAT options for mortgages for first time home buyers in Colorado Springs.

VA Loans for Colorado Springs Military

VA Loans are available to soldiers and officers of any United States Armed Forces Branch and are a VERY popular option for someone looking to buy a home for sale in Colorado Springs, Fountain or Monument - seeing as we have about 6 military bases in the area. A VA Loan is a guarantee from the US Department of Veteran's Affairs, whose mission is "to help veterans and active duty personnel purchase and retain homes in recognition of their service to the Nation."

For El Paso County, a first time home buyer can buy a home up to $417,000 for ZERO DOWN (as of 11/2008). This is AWESOME, considering the average home price in this area is about HALF that. You will have plenty of great homes to choose from.

FHA Loans

Currently, the best loan available for first time homebuyers in Colorado Springs is a FHA loan. A FHA Loan is a government backed loan and does not have a minimum credit score for a first time home buyer to qualify. They base their qualifications off of a variety of different factors. FHA interest rates are generally quite competitive, but you will need to put 3% down. (As of January 1, 2009 the minimum down payment will be 3.5%.)

"What if I don't have the 3% - 3.5% down payment?"

If the average home price is about $200,000, then the needed down payment would be $6,000 - $7,000. Not everyone has thousands of dollars just sitting in a savings account - especially in this market. One option is to get a "gift" from a friend or family member. Another option is to get the money from another account that may be available to you (IRA, 401k, etc.)

However, if you don't have a 3% down payment saved in your bank account and cannot access it through other means, then you may be interested in down payment assistance:

Downpayment Assistance Loan

One way to get 3% down is though another governmenrt program called CHFA. CHFA is the Colorado Housing Finance Authority (CHFA), and they will will loan a first time home buyer 3% for a down payment. The 3% is a LOAN. But there are 3 nice advantages to this loan (besides the fact that it helps you buy a home).

First, this loan is INTEREST-FREE. Yes, a real, live interest-free loan. Whoo hoo!

Second, you don't have to make any payments on this loan.

Third, you do not need to even pay it back until you:

• Pay off the original mortgage, or
• Refinance the original mortgage, or
• Sell the home

The CHFA 3% downpayment assistance is a great option when looking to buy a home for sale in Colorado Springs as a first time home buyer.

Downpayment Assistance Real Estate Bond Money

Another option to getting the needed 3%-3.5% down payment for a piece of Colorado Springs real estate is Bond Money.

Bond money is available through different programs through local governments. Some include:

• El Paso County Bond and
• Pueblo County Bond

Bond money is available to help first time home owners come up with the down payment in the county the home is purchased in.

So, if you are a first time home buyer in Colorado Springs, you definitely have options.

For more information on how to qualify for a mortgage if you are a first time home buyer in Colorado Springs, please contact Marcy Langlois at Colorado Capital Bank: 719.660.2691

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs and Fountain Real Estate Agents
Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
(719) 434-7525

The Fountain and Fort Carson real estate market for October 2008 includes the areas of Countryside, Cross Creek, Heritage and other new and mature neighborhoods south of Colorado Springs and close to Fort Carson Army Base. This data also reflects the Widefield and Security home sales.

Single Family Fountain Homes

• Active homes for sale: 588 (153 new listings in October)
• Homes sold in October 2008: 75
• Average Sale Price: $173,133
• Median Sale Price: $164,900
• Average Days on Market: 84 days (compared to 83 days in September)
• Average Sale Price/List Price: 98.5%

Townhomes and Condos in Fountain

• Active homes for sale: 38 (12 new listings in October)
• Homes sold in October 2008: 5 
• Average Sale Price: $129,889
• Median Sale Price: $132,000
• Average Days on Market: 73 days (compared to 180 days in September)
• Average Sale Price/List Price: 91.6%

Read Also:
Fountain and Fort Carson Real Estate Market Report for September 2008
Fountain and Ft. Carson Real Estate Market Report for August 2008

Search Homes for Sale in Fountain Valley CO

"Based on information from the Pikes Peak REALTOR Services Corp. ("RSC"), for the period October 1-31, 2008. RSC does not guarantee or is in any way responsible for its accuracy.  Data maintained by RSC may not reflect all real estate activity in the market."

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs and Fountain Real Estate Agents - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
Pictures of Colorado Springs
(719) 434-7525

The El Paso County CO real estate market for October 2008 includes a large portion of Southern Colorado, to include the following markets:

• Colorado Springs Housing Market
• Manitou Springs Housing Market
• Monument Housing Market
• Fountain Housing Market

El Paso County CO Real Estate Market - October 2008

Single Family Homes in El Paso County

• Active Listings in October 2008: 4,777
• New Listings in October 2008: 1,118
• Homes SOLD in October 2008: 570
• Average Sale Price: $234,154
• Median Sale Price: $190,000
• Average Days on Market: 82 days (compared to 95 days in September)
• Average Sale Price/List Price: 96.3%

Lofts, Townhomes and Condos in El Paso County

• Active Listings in October 2008: 889
• New Listings in October 2008: 166
• Homes SOLD in October 2008: 82
• Average Sale Price: $149,865
• Median Sale Price: $133,500
• Average Days on Market: 92 days (compared to 95 days in September)
• Average Sale Price/List Price: 96.8%

Land for Sale in El Paso County CO

• Active Listings in October 2008: 1,118 parcels of land for sale
• New Listings in October 2008: 135
• Land SALES in October 2008: 37
• Average Sale Price: $92,197
• Median Sale Price: $55,000
• Average Days on Market: 221 days
• Average Sale Price/List Price: 91.3%

Call for an updated list of land for sale in El Paso County (Monument, Manitou Springs, Fountain or Colorado Springs): 719.434.7525

Read Also:
El Paso County CO Real Estate Market Report for September 2008
El Paso County CO Real Estate Market Report for August 2008

"Based on information from the Pikes Peak REALTOR Services Corp. ("RSC"), for the period October 1-31, 2008. RSC does not guarantee or is in any way responsible for its accuracy.  Data maintained by RSC may not reflect all real estate activity in the market."

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
Pictures of Colorado Springs
(719) 434-7525