Foreclosure numbers in Colorado fell in 2011. But most experts believe this has less to do with the real estate market recovering and more to do with a delay in filings by the country's biggest banks.
Some people believe they can fight back against banks by attempting to show that the bank filing the foreclosure doesn't actually own the note. But our Colorado Springs bankruptcy attorneys believe there is another option that is more beneficial to Colorado Springs homeowners.
That option is filing for bankruptcy in Colorado Springs.
Did you know that filing for bankruptcy immediately stops a foreclosure? Whether your home has just received its first default notice or is slated to be sold at auction, filing for bankruptcy halts the process.
This can buy homeowners valuable time while they attempt to get their finances in order. Through the bankruptcy process, consumers can discharge their outstanding debt, such as from credit cards, medical bills and other loans, which can enable them to again make house payments.
Or, perhaps homeowners are currently in a house that has an underwater mortgage, meaning they are paying more on the loan than the house is worth. Many people are in that position. Filing for bankruptcy may allow the homeowner to get rid of their debt and their house after the foreclosure process has gone through.
The Denver Business Journal recently reported that Colorado saw a 28.6 percent dip in properties with foreclosure filings from 2010 to 2011, but the state still had one of the top 10 highest foreclosure rates nationwide, foreclosure tracking company RealtyTrac.
One out of every 56 houses had a foreclosure notice last year, totaling 38,557 properties. In December, one in every 620 properties went into foreclosure, a 7.29 percent drop from November.
Most analysts believe that foreclosure numbers dropped in 2011 because big banks in 2010 halted their foreclosure practices after investigators found out they were using "robo-signing" tactics and other unlawful means to take away people's homes.
If you are struggling with debt and need to speak with an experienced Southern Colorado bankruptcy lawyer, contact attorney Stephen H. Swift at 719-520-0164 for a free initial consultation.