Category Archives: Foreclosure

Walking Away From a Mortgage

Considerations Before Walking Away From a Mortgage. The Denver Post recently published an op-ed piece entitled “The Wisdom of Walking Away from Your Mortgage,” which encourages homeowners who owe more on their property than it is worth to consider simply walking away from their mortgage(s). This article, and others like it that suggest walking away… Continue Reading

Upside Down Homes in Insolvent Estates

Co-Author: Mike Smeenk, Esq. At various times during the Great Recession and its aftermath, different economists have estimated that approximately 25% of American households with mortgages are “upside down.” That is, for approximately 25% of American households with mortgage debt, the debt exceeds the property’s fair market value. While these percentages vary from place to… Continue Reading

Common Borrower Mistakes In Commercial Loan Workouts

  The strategies for commercial real estate loan workouts tend to be dramatically different than the considerations for most homeowners who are considering walking away from their home. Conventional wisdom gleaned from residential walk-aways does not cleanly apply to commercial defaults. While each case is different, homeowners tend to walk away from their home only… Continue Reading

Protecting Tenants in Foreclosure Act

A New Amendment to the “Protecting Tenants in Foreclosure Act” As described in a previous article, Changes for Some Post-Foreclosure Evictions, subsequent to May of 2009, tenants occupying foreclosed properties with a bona fide lease were not subject to immediate eviction. One of the issues discussed in the prior article was the many ambiguities contained in… Continue Reading

Assignment of Redemption Rights in Colorado Foreclosures

  Assignment of Lien Positions The assignment of junior liens and other redemption positions allows the system and markets to maximize the value of these positions. For example, a home owner’s association lien might have little value to the home owner’s association in a foreclosure of a senior deed of trust because the homeowner’s association… Continue Reading

Bid Rigging at Trustee Foreclosure Sales

Bid Rigging In certain situations the courts have equitable discretion to extend statutory redemption periods and void foreclosure sales. Courts have the power to set aside a foreclosure sale or extend the redemption period if there has been “fraud, deceit, or collusion.”(E1) One type of collusion occurs when two or more bidders at a foreclosure… Continue Reading

Foreclosure Investing in Colorado

I. Introduction In Colorado, the foreclosure process historically gave borrowers two opportunities to pull their property out of foreclosure. Prior to the foreclosure sale, the borrower (and others) could “cure” monetary defaults. After the foreclosure sale, the owner could “redeem” the property. For foreclosures filed after January 1, 2008, the time period which would otherwise… Continue Reading

Home Affordability Modification Program (“HAMP”)

Home Affordability Modification Program (“HAMP”) Lender Incentives to Modify Mortgage Payments The Home Affordability Modification Program (“HAMP”) is the federal loan modification program designed to assist homeowners who can no longer afford their monthly mortgage payments. HAMP went into effect in 2009 as part of the Making Home Affordable Program and set out a series… Continue Reading