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