Foreclosure in Golden>Question Details

Cwiedinm, Home Buyer in Golden, CO

I think we are going to have to foreclose or short sell our house. wWe haven't paid our mortgage for 2 months. What do we do?

Asked by Cwiedinm, Golden, CO Sat Dec 3, 2011

We are working with the mortgage company (for our first mortgage) to modify, but it seems like a lot of nothing happening. And we have a large second (home equity line of credit) with a different bank.

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For Sale by Owner? Even if you short sale you have to come up with real estate agent fees additional to what you owe the bank. Research your legal rights. Your lender is probably is hoping you try and sell or short sale to save THEM the cost of hiring an agent etc. Careful of these "so called" voluntary advisors, some get a @ $22K kick back from the government and others are disguised refinance companies. The sharks out there are not only prevalent, they are HUNGRY!

Also, FYI make sure you know your rights should your mortgage company try and force an early foreclosure on you. Just another tactic that mortgage companies are using against the ignorant to get you out so they can resell - it's ILLEGAL!

For moral hardworking taxpaying law abiding citizens there is little to no help from corporations. It's unethical but if everyone just walked away from their mortgages maybe the governments might crack down on these sharks screwing people out of their hard earned dollars. These times are tough, I wish you the very best, do some research on legalities too, I have had real estate agents lie and mislead me in this very local area!
0 votes Thank Flag Link Fri Feb 24, 2012
Hope you were able to enjoy the holidays despite the problems with your mortgage. If you are still in need of assistance, I would love to talk with you to see how I can help. Whether that be through talking with the bank regarding your loan mod or discussing what your next course of action should be. Having a second loan complicates things and you need someone that specializes in short sales. I am a CDPE (certified distressed property expert) that is specially trained to deal with situation like this as well as someone who has personally been through a short sale (with a HELOC) so I understand completely what you are going through right now. Feel free to contact me anytime to discuss how I can be of service to you. Wishing you better days in 2012!

Angela Abeyta
Real Estate Consultant
Metro Brokers
BC Realty, LLC
303.900.2483 Cell

Search Homes for Sale at:

As a REALTOR and Certified Distressed Property Expert (CDPE), I am equipped to discuss the various options available to homeowners who are experiencing hardships and facing potential foreclosure. If you know of anyone who may benefit from working with a professional CDPE, please forward my contact information on to them to schedule a private consultation.
0 votes Thank Flag Link Tue Dec 27, 2011
Hello Cwiedinm:
Sorry you are having difficulties.

It's difficult to tell from the sparse information here what your course of action should be.

HAMP and HARP might be the way to go. NACA is a nonprofit counseling service that works free of charge. Caveat: I've heard and read plenty of complaints. That could stem from the fact people were angry that NACA could not deliver on what they said was possible, or that they are difficult to reach. I haven't read that NACA has been particularly effective. They report that they have kept people in homes.

Be leery of any service that offers to get you a modification for a fee.

If you are upside down, your prospects might not be good. Though, if you can avoid foreclosure, you should. Foreclosure is a harsh consequence, as others have noted. Short selling is a little better. Putting things in perspective, two months behind is not drastic. You are communicating with the bank.

Two things you should try:
- Interview three real estate professionals who specialize in short sales
- Talk to a NACA counselor

Persistence is the best attribute to possess. Modifications take plenty of time - maybe a year or more. The grace time is not as good as a foreclosure, but the consequence can be a lot better. And a chance of working out a modification is better than no chance.

Best of luck.

PML of Longmont, CO
0 votes Thank Flag Link Sun Dec 4, 2011
They usually do not respond to people that are not more than 3 months behind and most of the time will not do anything until you are in foreclosure. Continue to call them over and over again you do not want to go through foreclousre and a short sale is not that much better.

Ramifications of Foreclosure, Short Sale or Deed-in-lieu-of Foreclosure

Here are some of the ramifications of foreclosure, short sale or deed-in-lieu-of-foreclosure, there are many more like; insurance rates, your job (yes employers are checking credit records these days).

Your credit score will be reduced by 200-400 points, short sale and deed-in-lieu-of a little less 100-200 points.

All forms of foreclosure stay on your credit report for 10 years.

After you have gone through foreclosure, short sale or deed-in-lieu-of-foreclosure there will be what is known as the "waiting period", this period of time varies for each and can be reduced if you had some type of extenuating circumstances that caused the foreclosure:
Waiting Periods to Buy After Foreclosure – “YES” Short Sale and Deed-in-lieu-of are forms of foreclosure
• Buying after a Walk Away Foreclosure
The waiting period is 7 years
• Buying after a Foreclosure
The waiting period is 5 years with 20% deposit up to 7 years.
• Buying after a Foreclosure with Extenuating Circumstances
The waiting period is 3 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Deed-in-Lieu-of Foreclosure with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.
• Buying after a Short Sale
The waiting period is 2 years with 20% deposit, 4 years with 10% deposit up to 7 years.
• Buying after a Short Sale with Extenuating Circumstances
The waiting period is 2 years with 10% deposit.

In addition to the waiting period and minimum down payment, you will be required to have a minimum FICO score and the home purchase must also be the principal place of residence, not a rental nor a vacation home.

Lastly, most loan applications will ask the dreaded question "Have you ever been foreclosed on?" this stays with you for life, many think that because it will not show up on the credit report after 10 years they can answer "no", well lying on a loan application is a felony that carries a major jail term, so be aware.

Good Luck
Bob Patrick
Buy a home after foreclousre, short sale, deed-in-lieu-of or bankruptcy expert
Movin-On LLC
Helping families/people that have lost their home get back into another in as little as 6 months
0 votes Thank Flag Link Sat Dec 3, 2011
If you have not heard back from your lender, keep calling them. I would advise listing your home ASAP with a Realtor in Golden that specializes in Short Sales.
0 votes Thank Flag Link Sat Dec 3, 2011
It's not unusual for it tio feel like a whole lot of nothing happening. They are slow and bureaucratic. In the past 6 months to a year the lenders have been much more willing to make loan modifications. Be in communication with both lenders, consistently. Then if the Modification is not approved or is not a modification you can afford then start the short sale contacting your Realtor, or find one who you trust and want to work with.
0 votes Thank Flag Link Sat Dec 3, 2011
Find a good Realtor and follow thier advice, it doesn't make sense for the first leder to modify their mortgage if the large second is causing the cash flow problem, would you if the tables were reversed? Good luck,
0 votes Thank Flag Link Sat Dec 3, 2011
Talk to your Realtor! Call your lender and explore options like the HAMP and HAFA programs. Call the Colorado foreclosure hotline: 1-877-601-HOPE HOTLINE WEBSITE: Deed in lieu??? The Shortsale process can be a tough process BUT can be managed with the right realtor. It is a better option than a foreclosure, easier on your credit and requires less time before you can buy again. I have a shortsale q+a on my website as well as foreclorsure prevention tips. Give me a call if you want to explore options, I would love to help you out.
Web Reference:
0 votes Thank Flag Link Sat Dec 3, 2011
Hi Cwiedinm-
This is the most common question I hear from people and the most common misconception that the lender wants to work out a loan mod for you. I have heard of 1 successful loan mod in the past 6 1/2 years working with several investors across the country. There are several factors to consider, as both replies have already mentioned. What is most important is being as educated as you can to all options and then deciding what the best options are for you given all the possible outcomes. Because every bank is a little different it would be necessary to get more info- mainly what type of loan, because there are a couple programs available to homeowners- some for loan mods and others for getting money back to you if you do decide to do a short sale. If you would like to discuss this further I would be more than happy to get the basic information from you and educate you more about the process. I am a local agent with a short sale team on staff- but if you already have an agent, I would still be happy to help you understand the process and have my short sale team work with either myself or your agent if a short sale is theoption you choose. There also are other creative alternatives, which may or may not be helpful in your situation as well. Please feel free to contact me with any questions- I live here locally in Golden as well.
Seth Walker
Agent/owner The Denver Realty Company
720 989-6254
0 votes Thank Flag Link Sat Dec 3, 2011
Dear Cwiedinm,
Your lender doesn't want a short sale or foreclosure and will probably be willing to work out a payment plan until you get caught up, if getting caught up is realistic. Do you want to keep your home or do you prefer to sell it? How much equity do you have in your home? I work the Golden market and would be glad to have a conversation with you. Call me to explore your options. It might not be as bad as you think. Every solution begins with communication.

Carol Ann Cardella, Associate Broker, Re/Max Alliance 303-422-1202
0 votes Thank Flag Link Sat Dec 3, 2011
Hi Cwiedinm,

Keep working on your loan modification and contact the lender for your 2nd too. If that seems like it's not going to work, contact a local Realtor about doing a short sale (if there's no way you can keep the property). You will have to be able to prove a financial hardship to both your lenders. A short sale is a better alternative than a foreclosure in many ways.

Good luck.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Sat Dec 3, 2011
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