The weight of not knowing if you still have time to keep your home

Panic, sleepless nights and endless worry seem to be everywhere you look. Deep down you know there is a problem but you're unsure if you still have time to fix it. Parts of you are even afraid to try and fix it. You're wondering if you can keep your home and stop the foreclosure. It feels like you're too late. You want to give up. I can assure you, it's okay to feel this way. It means it's meaningful to you and that's important because you have time and purpose on your side. You always have time and I'm here to show how much time you have to save your home.

You have time but it still feels impossible

If you know when your foreclosure sale date and time is, technically, you have until the official sale to stop your foreclosure. So, if you still have your home today, take a breath, you have a chance and that's all you can ask for. I believe it will be most helpful to show you the important deadlines and options available to you. Wherever you are in this draining process, there are options I promise. We will work backwards together from the foreclosure sale date to understand what is still possible and what deadlines exist. There is hope here. The earlier you act on this hope, the better I believe it can go. If you aren't sure when your foreclosure sale date is, that is okay and can be found easily.

A day and option you don't want to think about

The worst day possible is here. That day is the same day of your foreclosure auction and you have the option to file Chapter 13 bankruptcy. This triggers an automatic stay (11 U.S.C. § 362) and allows you to keep your home at least temporarily. I understand, even thinking of this option hurts, may break you, and may make you feel alone. I can tell you, this doesn't define you. Sometimes in life we are dealt a bad hand, but we can always rebound so if you are here today know there is hope. This option allows you to keep your home but a Chapter 13 repayment plan is required to keep it forever. Also, it is worth talking to a bankruptcy attorney as there are long-term financial consequences to this decision. If this doesn't feel much like an option, I understand. They do get better from here.

It's possible but doesn't feel possible

Up until 12 noon the day before that anxiety-inducing date, the foreclosure sale, you can still pay the missed payments, fees, and costs shown on your cure statement to keep your home (CRS 38-38-104(2)(b)). This payment must be made to the Public Trustee in certified funds but if done you have kept your home! So yes, you have time all the way until the end to make this work and I hope there is even minor relief in knowing that. If there isn't and you still don't feel safe we can still get through this but truthfully it will be hard. To give you the cure opportunity, you have to provide what is called a Notice of Intent to Cure 15+ days before the sale date. If you haven't done this, you won't be able to cure your loan this late in the foreclosure process. If you did, this option is still on the table.

An easy process but a painful one

If you missed the opportunity to file your Intent to Cure I am sorry. If that was your best chance to keep your home that is rightfully devastating and you don't need to minimize that. Within the devastation we can still work through this to a best alternative. One possible alternative is to avoid the negative consequences of foreclosure by accepting a quick close investor offer for your home. A cash buyer can close in 7 to 14 days, stopping foreclosure before it happens. If this feels like giving up and is deeply painful to think about, I see you. If you are curious to explore that path and all else available, we at Transitus are here to help. Take some time and a break to sit with the decision as it's a deeply important one.

A breath of fresh air and an empowering opportunity

We have hope. This next one is finally good news. If you've been working with your servicer on a loss mitigation plan, you have real power here. What is required is to hand-deliver a completed/accepted loss mitigation application to the Public Trustee 14+ days before the foreclosure sale date (CRS 38-38-103.2(3)). If your application is completed with your servicer but you do not deliver it to the Public Trustee the foreclosure will continue so this step is critical. Sure this is good, but every opportunity seems to instantly create more requirements. It's brutal what they have you do to keep your home and it feels unfair. To help in one way, there are a variety of different types of loss mitigation options available and you just need to work with the servicer to find what's best for you.

So many steps it feels impossible

At 15 days before the scheduled sale of your home, you have to file a Notice of Intent to Cure to the Public Trustee (CRS 38-38-104(1)). Once done, the Public Trustee will provide you a cure statement that tells you what is needed to stop foreclosure. You're wondering how many more steps are in this process? There's a feeling that you may make a mistake and it's terrifying but also reasonable. You will get through it, I'm sure, and we're here to help. Without this filing, even if you had the capability to resolve the problem the day before, you would not legally be able to cure your loan and keep your home. That's scary but also empowering because you now know what is needed.

The one option that may get you the most

With about 30 days until your sale date, this is realistically the last window to sell your home on the open market with traditional buyers. I want to be honest with you. To make this work, you would have needed to list your home before now. But if you're under contract today with 30 days to close, there's still a real chance to sell and avoid foreclosure entirely. Of all the options available, listing on the market typically gets you the highest sale price for your home and I want you to know that. If you don't have a real estate agent and need a connection to someone who can help, we at Transitus are happy to refer you.

One thing I do want to make sure you're aware of. If the sale price is less than what you owe the bank, you would either need to cover that difference yourself or have already agreed to a short sale with your lender. I know that's hard to hear but I'd rather you know now than be surprised later.

Rightfully not believing the bank

Why would I trust the bank? The people trying to take my home from me and my family? It's okay not to trust them but in many cases, this is the furthest deadline that will provide you a good option in keeping your home. At 37 days, you are required to submit a "complete" loss mitigation application with your servicer (CRS 38-38-103.2(3)). Complete is defined by your servicer so make sure you know what they consider complete because if you are missing a single document you are not protected. However, if a loss mitigation plan is agreed to, you have new life in keeping your home that wasn't there before.

A hope but not an expectation

I understand if it feels like nothing is going your way and you hope for a win anywhere. Truthfully if you need this, I hope you receive it because you deserve some goodwill. Your lender has the right and may push the foreclosure sale date back in what is called Continuances (CRS 38-38-109). If this happens, the cure deadlines and loss mitigation deadlines move back with those dates opening up more chances to save your home. However, the lender controls this decision entirely so let's conquer this problem on our own without them and do everything we can to keep it.

This was a lot of information and it can feel daunting to know what to do or what decision to make. However, as you can see, it's almost never too late. There is time. You always have a chance to choose the best path available to you and your family. Some paths will feel devastating and others may feel like a light of hope. The further away from the sale date the more options you have, so the earlier the better. I hope this is helpful to you and if there is any other way Transitus could help your specific situation we're here for you.

This article is general information from Transitus, not legal, financial, or tax advice. Foreclosure rules change and every situation is different. Transitus is not a foreclosure consultant (CRS 6-1-1103) and charges no upfront fees. For free help, call the Colorado Foreclosure Hotline at 1-877-601-HOPE or consult a Colorado real estate attorney.