Foreclosures are a common problem due to issues such as increases in property taxes, an unstable economy, or underwriters giving out mortgages to those who will obviously not be able to afford paying the loan back. There has been national concern about foreclosures ever since the real estate crash and recession that had devastating effects on the global economy between 2007 and 2009.

The state has been tracking foreclosures

The state of Colorado provides official statistics related to foreclosures through the department of housing’s government website. These stats are related to the number of “notice of election and demand” filings that begin the mortgage process each quarter in each county, along with the number of completed foreclosures where a person’s property is repossessed and sold. The state has found that the total number of completed foreclosures has actually dropped significantly in the last few years after peaking around the recession and the few years following. This is likely due to the strength of the economy in the last couple of years. Denver, like many of the other larger cities in the state, tends to experience a lower percentage of foreclosures relative to total housing than more rural areas.

However, it is important to realize that hundreds or thousands of home owners are still in trouble each quarter based on the information contained in their study, and foreclosures are still a serious problem.

Despite these issues, there are some legal defenses to foreclosures that can be asserted by an experienced real estate lawyer. This can help minimize the damage to a person’s credit history or provide alternatives that are better than being forced out of a home over a few months of delinquent payments.

How do foreclosures work in Colorado?

Colorado is unique in the sense that public trustees are appointed in each county to act as a kind of impartial intermediary in the foreclosure process. The company or person who owns the mortgage must file a notice with the trustee to show that the mortgage is delinquent, then the person who holds the mortgage is also given notice and instructions on how to make the payments current. There are also a number of procedural regulations which require notice to be given or payments to be made within a certain number of days throughout this process.

Due to this public trustee system, the courts are not heavily involved in the foreclosure process as in many other states. This also means that there are only a few legal defenses available once the payments are delinquent. Most of these defenses are actually exemptions tied to military services. There are also ways to contest the amount due or the way the payments are being applied at the beginning of the hearing, which can be crucial if the bank or lender has made any mistakes. A conversation with a real estate lawyer is the only way to be sure of any defenses that may apply to your personal situation.

Because this process and state regulations may not be easy for someone to figure out if it is their first time dealing with a foreclosure, it is always recommended to retain the services of a real estate lawyer during this process.

Talk to a real estate lawyer in Denver to get help today

If you are facing foreclosure on your home in Denver or nearby parts of Colorado, there is legal help available. Semler and Associates, P.C. is a firm that specializes in assisting people with all kinds of real estate matters, including foreclosures, for both residential and corporate clients.