Colorado Foreclosures Buying Colorado Foreclosures
- The number of Colorado foreclosures has been among the highest among all fifty states for the last few years.
- Colorado foreclosures aren't so great for those who are going through the foreclosure process but for real estate investors they are just peaches.
- Colorado foreclosures are non-judicial, so this means that a foreclosure can be completed without a court appearance by either the lender or the borrower.
Once a borrower has defaulted, the lender sends a notice of default to the borrower and trustee in question. A three-month reinstatement period is required in order to allow the borrower the opportunity to repay the debt. Upon expiration of the reinstatement period, a trustee's sale is announced and takes place, usually at a Colorado foreclosures auction. Fees and all costs associated with the principal on the mortgage and the Colorado foreclosures procedure is deducted from the winning bid. Any excess funds from the winning bid will be returned to the borrower.
Colorado foreclosures are often a great way to get a good deal on a piece of real estate, especially in Colorado. The housing values have maintained a steady two to six percent rise depending on the town or community. At the same time, banks have an abundance of Colorado foreclosures. Banks aren't in the real estate business they are more interested in lending money to a new buyer.
By far the best case scenario for the seller, buyer and bank is when the house sells in the pre-foreclosure phase. Purchasing Colorado foreclosures in the pre-foreclosure phase avoids the costly, time-consuming foreclosure process for the bank, the bad credit marks for the seller and it also gives the buyer more power at the negotiation table - it may be worth it to the seller to give up all equity and possibly pay a little in order to avoid the stain on their credit report.