Homeowner Actions & Consequences

 

Homeowner Action

 

 Consequences

Sell House:

  • Sell via Real Estate Agent & Price to Sell (45-180 Days)

 

  • Real Estate Agent Commissions & Closing Costs

Rent House To Cover Payments

  • You Perform Property Management

  • Outsource Property Management

  • Lease with Option to Buy
     

 

  • Advertise Property, Credit Check, Criminal Background Check, Lease Contract, Collect Rents & Get Repairs Done in a Timely Manner etc.

  • Pay Property Manager to Perform Above (10% Commissions)

  • Enter Into Lease Option or Long Term Sale Cycle - No Real Estate Commissions
If Insufficient Income to Service Debt Obtain Interim Funding From:
  • Selling Other Assets
  • Obtain Funds From Family
  • If Have Equity - Obtain 2nd or 3rd Mortgage

 

  • Loss or Reduction of Personal Net Worth

  • Increase Debt Service & Family Matters

  • Increase Debt Service & Loss of Equity
     
If Insufficient Income & No Other Sources of Funding:
  • Stay In House as Long As You Can... Damage Credit...
  • Period 1: Behind in Payments -
  • Period 2: Lender Initiates Foreclosure Proceedings - Can Cure or Pay All Back Payments, Penalties and Legal Fees
  • Period 3: Property Sold at Public Auction - Must Obtain New Mortgage
  • Period 4: Redemption Period
  • Must Move


     

 

  • Period 1: Late Payment - Credit Damage

  • Period 2: Foreclosure Proceedings Initiated - Additional Credit Damage, But If Can Obtain Funds Can Cure & Leave Mortgage In Place... If Distressed Situation May Be Able to Have 3rd Party Specialist Buy Property Via Short Sell

  • Period 3: Property Sold at Public Auction or Turn Over Property to Lender via Deed In Lieu of Foreclosure - Now have Foreclosure on Credit Record. 

  • Period 4: Can Redeem Property (within 75 Days in Colorado).  Must Obtain New Financing to Payoff Loan, Must Include Late Payments & Legal Fees.  If have equity... May Be Able to Sell Rights to Redeem to 3rd Party