Repayment Problems, Possibly Foreclosure
Tips for current and potentially distressed homeowners and borrowers
Don't put your home or credit at risk.
- Contact your lender ASAP if you have trouble paying your loan. Most lenders want to help you keep your house.
- Respond to all mail from your lender. “I didn’t open my mail” isn’t a valid excuse in a foreclosure.
- Get information & help. Call the free Colorado Foreclosure Hotline (consumer help line formed/operated by state government, nonprofits and lenders) at 877.601.HOPE now or www.coloradoforeclosurehotline.org (web site active in early September 2007). The helpful Hotline (certified by the U.S. Dept. of Housing & Urban Development) has helped thousands of Coloradans.
- Know your status. Read your loan papers; understand the consequences, options and procedures.
- Prioritize your spending. Keeping your home should be your top priority after health care – even before paying off other debt, and especially before discretionary expenses (cell phone, cable, shopping…).
- Avoid foreclosure-prevention scams. Don't pay fees for foreclosure help, don't sign a document; use nonprofit counselors for foreclosure help. Watch out for “equity-skimming” scams where a “buyer” offers to repay your mortgage if you sign over your deed and move out. You’re left with the debt and no house.