Colorado Foreclosure Deficiencies
Colorado Attorney Defending Against Deficiency Judgments
In some circumstances, the law in Colorado allows the bank or other lender to seek the difference between the sale price of a foreclosed property and the amount owned on the mortgage loan. The lender has six (6) years to seek a deficiency judgment after the foreclosure sale is concluded. These judgments are most common in foreclosure sales involving a large unpaid balance. The lender can also sell their deficiencies under Colorado law to collection agencies who can pursue a judgment and future garnishment against your wages or income.
Experienced Short Sale and Foreclosure Lawyers
Jeff helps the client defend against deficiency lawsuits. Banks and other lenders can sue for breach of contract, alleging that the homeowner did not pay what was owed on the mortgage contract after a foreclosure sale. Many banks do not file the deficiency judgments to which they are entitled; they know that the former homeowner does not have the resources to pay the judgment.
Why a Short Sale Is Better Than Foreclosure
The threat of a deficiency judgment is one of the reasons why a short sale is better than foreclosure — in most short sales, a deficiency judgment is not an option for lenders. Our experienced and knowledgeable attorneys advise clients about their options. We do everything we can to negotiate a short sale that has no deficiency for the borrower in writing.