Two lawmakers in Colorado are introducing a bill to enable judges to extend a foreclosure for up to 90 days. The extra time could be used to work out a settlement as opposed to the homeowner losing their home to foreclosure.
The problem with mortgage workouts is time. So much of what needs to be done takes an extraordinary amount of time. The workload of the persons dealing with homeowners is overwhelming I am told. In fact much of the time the bank is trying to determine who actually owns the loan and who has the say in what can be worked out or not.
Homeowners facing financial issues should not delay in contacting the mortgage holder. The longer you wait, the less likely you will be able to work out a solution.
Many homeowners do not realize as soon as the bank files a Notice of Election and Demand for Sale, the clock starts ticking. The homeowner must redeem the property by making up the back payments or coming to an agreeable settlement with the mortgage holder. All this takes time.
The Clock Keeps Ticking...
Homeowners do have alternatives to foreclosure. Forbearance agreements can be arranged so the homeowner can pay the delinquent payments on the "back end" of the loan. Some mortgage companies will restructure the loan so the homeowner can stay in the home.
Colorado provides a Foreclosure Hotline to the public seeking to AVOID foreclosure. 1-877-601-HOPE Trained counselors help those in trouble find alternatives in repayment plans, modifications to the mortgage agreement or selling the home prior to the foreclosure.