With all the talk of foreclosure in the news, it's easy to get worried about the future of Colorado real estate.  The good news is that you have plenty of warning from your lender before they foreclose on the property.

Foreclosure is when the lender takes legal action to repossess your home if you default on the loan.  When you miss the first payment, your lender will call you to make arrangements to get your loan current.  It's very important to talk to your lender at this point.  If you're having trouble making the payment due to a temporary problem, your lender may offer you forbearance on your loan for a month or two.

If you miss a second payment, the lender will begin to call you more often demanding that you catch up on the loan payments.  You may begin receiving letters from the lender telling you to become current or they will take appropriate legal action. 

If you continue to fall behind on your mortgage, and aren't able to make a third payment, you'll receive a different kind of letter from your lender.  You will receive a Notice of Election and Demand from the lender telling you to become current on your payments by a certain date, or the entire amount of the loan will become due and payable.  If you are unable to pay up, the lender will begin the foreclosure process, which in Colorado typically takes and additional 150 days.

Remember, a lender would rather work out a deal with you and avoid the whole foreclosure process altogether.  Keep in contact with your lender, and you may still be able to make a payment arrangement with them and stay out of foreclosure.

It can take a total of 240 days to complete the foreclosure process; the start of first missed payment till the date one can lose their home.  If you or someone you know is in need of help have them call me as we need all this time to find out solutions to that specific need.