Back to Table of Contents

Understanding Foreclosures

It is an unfortunate commentary, but when economic activity declines and housing activity decreases, more real property enters the foreclosure process. High interest rates and creative financing arrangements are also contributing factors.

When prices are rapidly accelerating during a real estate “bonanza”, many people go to any lengths available to get into the market through investments in vacation homes, rental housing and trading up to more expensive properties. In some cases, this results in the taking on of high interest rate payments and second, third and even fourth deeds of trust. Many buyers anticipate that interest rates will drop and home prices will continue to escalate. It is possible that neither will occur and borrowers may be faced with large balloon payments becoming due. When payments cannot be met, the foreclosure process looms on the horizon.

In the foreclosure process, one thing should be kept in mind: as a general rule, a lender would rather receive payments than receive a home due to a foreclosure. Lenders are not in the business of selling real estate and will often try to accommodate property owners who are having payment problems. The best plan is to contact the lender before payment problems arise. If monthly payments are too hefty, it may be that a lender will be able to make some alternative payment arrangements until the owner’s financial situation improves.

Let’s say, however, that a property owner has missed payments and has not made any alternate arrangements with the lender. In this case, the lender may decide to begin the foreclosure process. Under such circumstances, the lender, whether a bank, savings and loan or private party, will request that the trustee, often a title company, file a notice of default with the county recorder’s office. A copy of the notice is mailed to the property owner.

If the default is due to a balloon payment not being made when due, the lender can require full payment on the entire outstanding loan as the only way to cure the default. If the default is not cured, the lender may direct the trustee to sell the property at a public sale.

In cases of a public sale, a notice of sale must be published in a local newspaper and posted in a public place, usually the courthouse, for three consecutive weeks. Once the notice of sale has been recorded, the property owner has until 5 days prior to the published sale date to bring the loan current. If the owner cures the default by making up the payments, the deed of trust will be reinstated and regular monthly payments will continue as before.

After this time, it may still be possible for the property owner to work out a postponement on the sale with the lender. However, if no postponement is reached, the property goes on the block. At the sale, buyers must pay the amount of their bid in cash, cashier’s check or other instrument acceptable to the trustee. A lender may “credit bid” up to the amount of the obligation being foreclosed upon.

With the recent attention given to foreclosure, there also has been corresponding interest in buying foreclosed properties. However, caveat emptor: buyer beware. Foreclosed properties are very likely to be burdened with overdue taxes, liens and clouded titles. A buyer should do his homework and ask a local title company for information concerning these outstanding liens and encumbrances. Title insurance may or may not be available following a foreclosure sale and various exceptions may be included in any title insurance policy issued to a buyer of a foreclosed property.

Your local title company will be happy to provide additional information.

Back to Table of Contents

A Tale of 2 Home Sellers

Client Reviews
3675193
"Mark was very helpful in keeping us informed every step of the way..The house sold the very first weekend for $30k more than it was listed for, I ... more "
5.0/5.0
by susansoukup4964
3642089
"Mark was wonderful to work with. He was professional and attentive. He is a pleasure to communicate with and always available to answer questions. He ... more "
5.0/5.0
by angboz00
3581850
"Mark has sold 2 houses for us and has always been able to answer any questions quickly and accurately. He is patient, friendly, professional and knows ... more "
5.0/5.0
by user480131

 

Voted #1 - HQ Homes - 1% Flat Fee - Denver, Castle Rock & Douglas County, Colorado Real Estate

Welcome to the next generation of real estate service in Colorado - HQ Homes. HQHomes has been offering full service discounted flat fee real estate services for over 18 years serving thousands of satisfied customers whose savings total well over 1 million dollars.

Our Beliefs are "Treat the customer right - give them a GREAT deal and they will refer their friends and family

While it may seem pretty simple most corporate real estate companies don't get it, still charging high commissions.  At HQ Homes flat fee real estate we have a different philosophy - You are more than just another customer to us - you are a life long client, friend, and our best salesperson.

Buying a Home?

We reward our home buying clients with up to 1/2 of our commission*. Simply buy a home and we give you up to 1/2 of the commission* towards your closing costs with our home buyer rebate.

Selling a Home?

We only charge a 1% flat listing fee fee* to sell your home, providing our customers full service and a industry leading marketing package, giving you better service and marketing than those high commission competitors.

Almost everyone we talk to asks "What is the CATCH?!?" 

The catch is, if you buy a home without HQ Homes as your real estate company, without our flat fee you are giving away THOUSANDS of YOUR HARD EARNED DOLLARS.

There really is no catch, check out our great Zillow and Google reviews from our clients.

Call Today And Find Out Why We Were Voted The #1 Real Estate Company.

Our Home Buyer Rebate Program is the best you will find in the Denver or Castle Rock Colorado real estate markets. At HQ Homes we make the home buying process simple, fun and profitable to you with our home buyer rebate. If you are like many of today's savvy homebuyers, you are more comfortable doing the initial legwork and research. Perhaps you only want to engage a real estate pro when you are ready and on your terms. If this is you, then you are our ideal client! Please give us a call.

Almost everyone we talk to asks us how we can offer our service at such a low cost while other people are paying commissions up to 7 times what we charge.  The answer is very simple - VOLUME.  We determined that we would rather help more customers, which equates to a  bigger customer base who refer us more business, in turn lowering our costs of doing business. This decision has allowed us through our flat fee listing and home buyer rebate to pass these savings on to you, our clients. We continue leading the Denver real estate market into the next generation of real estate with the highest productivity and customer satisfaction rankings. 

Our clients are so impressed with us that the average client refers 3 new clients to us! That's the nex generation of real estate, treating your customers right!

*Subject to lender approval, RESPA  Act, and our legal disclaimer - We reserve the right to change the home buyer’s rebate program and home seller's program at any time for any reason without notice.