THE UNHOLY TRINITY…
FORECLOSURE, BANKRUPTCY & SHORT SALE
Most real estate loans are “secured” by a mortgage (deed of trust in Colorado). The security is your property. If you stop paying back the loan, rather than suing you,your lender will terminate your interest in the property and sell it to recoup its loan proceeds. The process is called foreclosure.
Under Colorado law you have rights that you may exercise before your lender can terminate your interest. You should consult legal counsel or call the Colorado Foreclosure Hotline to learn more about your rights.
WHAT ARE MY OPTIONS?
Owners facing the prospect of foreclosure have a number of options:
Some owners request that their lender accept a deed in lieu of foreclosure and some turn to bankruptcy. To help you decide on the best course of action in your particular circumstance, Unified Title Company recommends that you consult legal or other professional counsel (e.g., a mortgage broker or a real estate agent).