Foreclosure Attorneys in Colorado Springs, Colorado

Foreclosures are all too common in Colorado. When individuals who are just trying to make ends meet fail to make their loan payments, this can cause their lender to bring a foreclosure action against them. If you’re in this position and your home is in jeopardy, it’s natural to feel overwhelmed. 
 
Reach out to a knowledgeable foreclosure defense attorney as soon as you can. At Kinnaird Law Firm, we're dedicated to offering experienced legal services for clients who fear losing their property to foreclosure. As your legal counsel, we can evaluate all of the facts of your case and help you explore your options. 

Kinnaird Law Firm proudly serves clients across Colorado Springs and surrounding areas in Colorado, including Douglas County and El Paso County. Set up a one-on-one consultation with us today. 

What Is Foreclosure?

A foreclosure is a legal procedure through which a lender, financial institution, bank, or mortgage company repossesses a home or forces a home sale. Foreclosure allows the lender to acquire ownership of a property and recover outstanding debts. 

Common Reasons for Foreclosure

Here are some common reasons for foreclosure: 

• Failure to pay the agreed home loan

• Failure to pay property taxes

• Failure to pay property insurance

In addition to those key reasons, other circumstances can contribute to a foreclosure, including unemployment, divorce, excessive medical bills, credit card debt, and more. If you're trying to prevent a foreclosure on your home, get in touch with an experienced foreclosure defense lawyer immediately. Your legal counsel can educate you about the foreclosure process in Colorado and how you might be able to stop it.

Foreclosure Process in Colorado

Colorado is a non-judicial foreclosure state. This means that the lender doesn't need court supervision to foreclose your property. Here are the steps involved in the Colorado foreclosure process: 

Preforeclosure Notice 

Preforeclosure is the period after falling behind on your payments but before the lender starts the foreclosure. You will receive a preforeclosure notice or "breach letter" at least 30 days after the loan default and prior to filing a Notice of Election and Demand. 

Apply for Loss Mitigation 

The lender must reach out to you to discuss your loss mitigation options. This may include negotiating a feasible payment plan, forbearance, or loan modification. 

Notice of Foreclosure 

The foreclosure process officially starts once the lender's lawyer files a Notice of Election and Demand (NED) and other foreclosure documents with the public trustee. The public trustee will send you a notice of sale and the right to cure and redeem twice. The notice will also be published in a newspaper. 

Attend a Court Hearing 

If you fail to cure the default or file for bankruptcy, the lender will seek a court order—under Rule 120 of the Colorado Rules of Civil Procedure—to authorize the property sale. You must respond to the notice and attend the court hearing or risk a default judgment. 

The Foreclosure Sale

Once the court authorizes the property sale, a date will be scheduled for the foreclosure sale. This will be done publicly and open to all bidders. The lender can make a "credit bid" up to the borrower's debt amount. The property will be sold to the highest bidder. 

Will Filing for Bankruptcy Stop a Foreclosure?

How can you stop a foreclosure in Colorado? Filing for bankruptcy is an option. When you file for bankruptcy, an automatic stay order will go into effect. This court injunction will stop all debt collection efforts and legal action by the lender against you—including repossessing or foreclosing on your home. If you want to stop the foreclosure and save your property, filing for bankruptcy might be the right choice. Indeed, if you successfully file for Chapter 13 bankruptcy, you may be able to keep your home. 

Chapter 13 Bankruptcy 

Depending on your specific financial circumstances, filing for Chapter 13 bankruptcy can help you achieve the fresh start you need. Filing for this kind of bankruptcy requires proposing a repayment plan to the lender to pay back your home loan within a period of 3 to 5 years. Provided that you are able to pay the mortgage and the arrearage over the specified period in your Chapter 13 repayment plan, you may be able to keep your property. 

Can I Modify My Home Loan to Avoid Foreclosure?

You might be able to pursue a loan modification in order to avoid foreclosure in Colorado. Your legal counsel can reach out to the lender to help negotiate a loan modification. This may entail reducing the interest rate, extending the term of the loan, or restructuring the loan entirely. A reliable Colorado foreclosure attorney can evaluate every detail of your situation and help you move forward with confidence. 

Work With Seasoned Foreclosure Defense Attorneys

The possibility of losing your Colorado home to a potential foreclosure can be heartbreaking. Thankfully, you may still be able to stop the foreclosure and keep your property. If you need proper guidance to prevent a foreclosure on your home, consult with a seasoned foreclosure defense attorney. 

At Kinnaird Law Firm, we have the diligence and resources to advise and guide clients in foreclosure-related matters. As your legal counsel, we can help you and your family explore your options and fully understand the benefits and drawbacks of each option. Above all, we’ll stand by your side every step of the way.