Colorado Foreclosed Homes Can Fulfill Your Housing Needs
Colorado foreclosed homes result from home owners not being able to pay off their mortgage debt
. The lender files a notice of default to begin the foreclosure timeline that usually runs for 90 days. At this time, the owner can opt to pay off their debt or sell the property themselves, thus the term pre-foreclosure sales or short sales. Owners who are particular about their credit score will probably opt for this because they do not want to be foreclosed on. A foreclosure is a blemish to a person's credit reputation making it harder for them to take out a loan in the future. While the rules governing foreclosures vary in different states, the manner of purchasing these properties are pretty much the same.
Foreclosures in Colorado can be judicial or non-judicial. In a non-judicial foreclosure proceeding the governor appoints what is called a public trustee in each county across the state. This trustee works as the middleman between the creditor and the lender, he will take over the task of selling Colorado foreclosed homes at a public auction held at the steps of the county courthouse.
Searching for Properties
Information on home auctions are available in local newspapers, the country courthouse and even online. When a foreclosed property does not sell at auctions they go back to the bank or the lending institution selling them and become real estate owned. At this point the mortgage is extinguished and the property is freed of any holds or liens so it comes to the market with a clean title. These homes get listed in the multiple listing service and in other foreclosure listings sites. This is where buyers can find them.
Purchasing Colorado Properties
If you plan to purchase at an auction keep in mind that these are essentially cash sales so you have to be prepared to pay the entire amount almost immediately. Real estate owned Colorado foreclosed homes can be paid through a financing plan, which sometimes can even be offered by the bank holding the property themselves.