| Colorado holds many "firsts"; the World's First Rodeo | | | | they are more concerned with lending money to a |
| was held on July 4th, 1869 in Deer Trail, the first | | | | new buyer. |
| hotel west of the Mississippi River was built in Golden | | | | The best case scenario for the seller, buyer and bank |
| in 1867 and in 1894 three women from Colorado | | | | is when the house sells in pre-foreclosure. This avoids |
| became the first women ever elected to state | | | | the costly, time-consuming foreclosure process for |
| legislature in the US. The Centennial State leads the | | | | the bank, the bad credit marks for the seller and |
| nation in population growth, tech jobs, life | | | | gives the buyer more power at the negotiation table |
| expectancy and, unfortunately, foreclosure rates. | | | | - it may be worth it to the seller to give up all equity |
| The foreclosures in Colorado were the highest | | | | and possibly pay a little to avoid the stain on their |
| among all 50 states for both the second and third | | | | credit report. |
| quarters of 2006. The foreclosure rate was three | | | | When that isn't possible, foreclosure is the next step. |
| times the national average as of October 30, 2006. | | | | Buyers should expect to research a suitable property |
| Greeley, a farm community in Northern Colorado had | | | | and practice patience until it comes along. Buyers |
| the distinction of the highest foreclosures in the | | | | should then head to their bank and get pre-qualified |
| state. One in every 156 homes in Greeley is in | | | | for a loan. Bargain hunters should go to the table with |
| foreclosure, one in every 300 homes in Colorado is in | | | | pre-qualification (not pre-approval) letter in hand. |
| the same process. | | | | Research should include more than just the |
| Foreclosures in Colorado aren't so great for those | | | | specifications of the house. If this will be a primary |
| going through the process but the many investors | | | | residence, it's important to know long term plans for |
| have turned the lemons into lemonade. Most of | | | | the community, nearby schools, area crime and |
| Colorado has experienced a sellers market during the | | | | comparable properties in the vicinity. Take the time |
| second and third quarters of 2006, meaning there are | | | | to view the property inside and out. |
| more people looking to buy real estate than those | | | | The next step for the buyer is to attend the auction |
| selling. | | | | or contact the seller directly to make an offer. When |
| In Colorado, foreclosures are non-judicial. This means | | | | considering the price to offer, considerations should |
| that a foreclosure can be completed without a court | | | | be made to any outstanding liens or bankruptcies |
| appearance by either the lender or the borrower. | | | | that may affect the record of the property. Banks |
| Once a borrower has defaulted, the lender sends a | | | | rarely settle for less than 90% of the outstanding |
| notice of default to the borrower and trustee. A | | | | loan balance. |
| three-month reinstatement period is required to allow | | | | If you believe you may be foreclosed upon, you can |
| the borrower the opportunity to repay the debt. | | | | do a few things to mitigate your position. Offer to |
| Upon expiration of the reinstatement period, a | | | | sell your home for only the amount you owe on the |
| trustee's sale is announced and takes place, usually as | | | | loan. It's better to walk away from a little profit than |
| an auction. Fees and all costs associated with the | | | | miss out on the opportunity to buy a home in the |
| principal on the mortgage and the foreclosure | | | | foreseeable future. |
| procedure is deducted from the winning bid. Any | | | | Once the foreclosure process has begun, you'll need |
| excess funds from the winning bid are returned to | | | | to re-establish your good credit. Letting time pass is |
| the borrower. | | | | the single best action you can take to improve your |
| Foreclosure is often a great way to get a good deal | | | | credit score. Make payments on time and don't open |
| on a piece of real estate, especially in Colorado. The | | | | new accounts for a while. Save 5% - 20% (the more |
| housing values have maintained a steady 2% - 6% | | | | the better) to use as a down payment on a future |
| rise, depending on the town or community. At the | | | | home. A foreclosure in Colorado does not condemn |
| same time, banks have an abundance of houses to | | | | you to a life of rentals. |
| foreclose on. Banks aren't in the real estate business, | | | | |