According to RealtyTrac, there were 494 foreclosure filings in September 2009 against Colorado Springs home owners. This takes the total to about 29,511 active Colorado Springs foreclosures.

One of the questions that we hear a lot is:

My Colorado Springs Home is in Foreclosure. When Do I Need to Move Out?

If there are almost 30,000 Colorado Springs foreclosures, then this question is being asked a lot.

GOOD NEWS:  Just because you fall behind on your mortgage payment, and cannot catch up, does NOT mean that you need to move out immediately.

In fact, you may have up to 7 months to stay in your home before you need to move out!*

Let’s understand the foreclosure process in Colorado:

• You are a few days late on your mortgage payment (but less than 30 days). This means that you are DELINQUENT. You do not need to move out.

• Once you become 30 days late, you are in DEFAULT. (Usually this is because you are in a financial situation that has made it difficult for you to keep up on your bills – NOT because you just “don’t want to” pay your mortgage.) This is when the collections departments start harassing you endlessly. They can be outright mean. You do not need to move out.

• During this time, you may qualify for either a loan modification (where the lender changes the terms of your loan to accommodate your current financial situation) or they may agree to work with you to catch up on your payments a different way. The ONLY way that his can happen is if you ASK THEM and explain your financial situation – and why you have been unable to pay. Right now, banks and lenders are more than willing to work with people to get caught up on their mortgages, as long as they know what is going on …
  
  
• If your loan is an FHA loan, it will become a FORECLOSURE after 3 missed payments. If your loan is NOT an FHA loan, then the lender can decide to start the foreclosure process the MINUTE you miss just ONE payment. This just means that the lender has transferred your “file” to foreclosure attorneys to start processing it to be sold at the public auction. You will start getting all kinds of legal notices and even more harassing phone calls.  You do not need to move out.

• Once your “file” has been transferred from the attorney to the Public Trustee, your home will be placed on the Election and Demand list, with a date that the home will be auctioned off. This date is generally between 110-125 days in the future (roughly 3-4 months). [FIND YOUR FORECLOSURE DATE HERE] You will get even MORE legal notices and harassing phone calls. This is also when you will start getting a bunch of mail from both real estate agents and investors asking you to sell your home. [Beware of Foreclosure Assistance Scams!] You do not need to move out.

• If you do not catch up on your mortgage (which will include all your missed payments, late fees and legal fees) OR if you do not CURE the loan through selling your Colorado Springs home (or short selling the home – see below), then your home will be SOLD AT THE PUBLIC AUCTION on the date posted by the Public Trustee. MOVE OUT BEFORE THIS DATE or you will be evicted. (Should this be the option you take, consider asking your bank for a “Cash for Keys” option, where they may give you a few hundred bucks to leave the property on time and in decent shape.)

Based on this information, you could possibly live in your home for up to another 7 months after your 1st missed payment, before HAVING TO MOVE. Use this time to save your money to get into another home.

More Questions? Contact us for a free, no-obligation,
PRIVATE consultation regarding your situation: 719.434.7525

Now,there are options that could both have you AVOID foreclosure AND stay in your home even longer.

Read More: Foreclosure SUCKS – You Have Options

Currently, the Colorado Springs Pikes Peak MLS only shows 1,056 foreclosures either for sale or under contract (as of 11/2/2009). This means that there are about 28,000 people out there who MAY not know that they have a LEGAL and EFFECTIVE way to avoid a foreclosure. This is called a short sale.

Read More: Why a Colorado Springs Short Sale is a Great Alternative to Foreclosure

If you owe more than your home could sell for, a Colorado Springs SHORT SALE may be a perfect option. Not only will a short sale be a softer hit on your credit than a foreclosure, but a competent real estate agent may also be able to push back the foreclosure date to accommodate a successful closing – giving you even more time to prepare to move.

Additionally, when a Colorado Springs home forecloses the bank has the right to go after the foreclosed homeowner for the DEFICIENCY between the loan amount and what the home sold for (after fees). In a short sale, a competent real estate agent can negotiate with the banks to NOT go after the homeowner for this amount, but, instead 1099 (tax) them for the amount.

Example:

• Foreclosure: The deficiency (minus fees) in the foreclosure was $30,000. The homeowner MUST pay back the bank that $30,000.
• Short Sale: The deficiency between what was owed and what the home sold for (minus fees) was $30,000. The bank will send the homeowner a 1099 for $30,000. This shows up as “income” for the homeowner and that homeowner will be taxed on that amount.** My thought? It is better to pay the TAX on the amount than pay the WHOLE amount … yes?

*Please contact a real estate attorney to see how this does or does not apply to you.
**Consult with a tax attorney on how this will affect you, specifically.

If you are still trying to decide what to do, please give us a call. We understand that you are in a crazy and emotional situation and we may be able to help you … with NO OUT OF POCKET EXPENSE TO YOU.

We are Certified Distressed Property – Colorado Springs Short Sale Experts and know how to help you.

Contact us: 719.434.7525 or ShortSaleHelp@wagneriteam.com

 

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
Pictures of Colorado Springs
(719) 434-7525

As a licensed Colorado Springs Realtor®, I ALWAYS recommend that potential home buyers and sellers interview several different agents before deciding who they will work with. This gives them the security of knowing that they made the right choice when working with an agent.

Read Also: What is a Realtor®?

However, there some times when the line is fuzzy … Some times when a home buyer or seller may want to work with more than one agent. Here are some guidelines for figuring out when and HOW to work with more than one Colorado Springs real estate agent.

Home Sellers

In most cases, if you are looking to sell your home, you will interview several agents and then choose the agent who is a best fit for you and your needs. In most cases, you will sign “An Exclusive Right to Sell” and only work with ONE agent for the duration of the contract or until the home sells.
Read Also: The Difference Between Exclusive Right to Sell and Exclusive Agency [Colorado]

Home Buyers

Many first time home buyers (and several “seasoned” home buyers) will call on signs and advertisements and talk with MANY real estate agents until they find a home that they want to buy … and then just work with the listing agent to buy the home. Honestly, this is not a good idea, as the home buyer will NEVER get a “better deal” than if they had their own representation (Buyer Agent). Remember … the listing agent is only looking out for the best interest of the seller … not the buyer.

Sometimes, a home buyer understands this and decides to “work” with several different Buyer Agents to see who will find them the best deal. This is ALSO not a very good idea for a couple reasons …

1. All Buyer Agents have the exact same access to the exact same homes for sale via the local MLS. No one has “special” knowledge or access to homes that others do not, so they all have the potential of finding the “best deal”.
2. Buyer Agents only get paid when they successfully find a home for a home buyer … and it closes. All the up front work of finding the home is done without pay and in good faith that the home buyer that they are working with is using them to represent them. If a home buyer is not disclosing that they are potentially working with other agents, then the Buyer Agent does not have the ability to fairly weigh out the situation and determine whether or not they want to work with that home buyer.
3. If a home buyer has signed a “Buyer Agency Agreement” with ONE agent, then they are breaching a contract to work with another agent. This can get ugly … and no one wants “ugly” …

Read Also:

• Top 5 Ways to Choose the BEST Real Estate Agent When Buying a Home in Colorado Springs
• 3 Easy Ways to Find a Buyers Agent to Represent You
• Top 7 Questions to Ask Your Buyer’s Agent

However, there ARE some exceptions.

1. If a home buyer wants to work with more than one agent (for whatever reason), the proper etiquette is to NOT sign a Buyer Agency Agreement and to notify each agent of this decision.
2. If a home buyer is considering buying different types of property or different areas, they may consider hiring an “expert” for each area. Example: Sally and Sam don’t know if they want a downtown condo or horse property, so they hire a “ranch” expert to help them find horse property and a “condo” expert to help them find a condo. This is actually a GREAT idea, as it ensures the home buyers that they are getting the best possible representation in their home search and purchase.
3. This is kind of an exception, but more of an FYI … Some people work with more than one agent because they don’t know if they are going to “like” being “married” to just one agent. In this case, a home buyer should consider just signing a week long Buyer Agency agreement – If after that week, the agent is not a good fit, then the home buyer can move on and find a new agent.

Realtors® are professionals and should be always looking out for a home buyer and seller’s best interests. Finding ONE agent to work with is generally going to be your best bet.

 

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
Pictures of Colorado Springs
(719) 434-7525

The biggest confusion that I see, as a Colorado Springs real estate agent, is understanding the difference between an Exclusive Right to Sell and Exclusive Agency, both by home sellers AND other agents.

There are 4 ways that a home seller in Colorado could choose to sell their home:

1. Exclusive Right to Sell with an agent
2. Exclusive Agency with an agent
3. Open Listing with multiple agents/offices
4. For Sale By Owner with NO agent

An open listing is basically an agreement between the home seller and multiple agents to get their home sold. Whoever sells it first, gets the commission. The major issue with this is that a property can only be active in the MLS with one agent at a time, so there is no incentive for the 2nd or 3rd agent to even enter into such agreement.

If you decide to sell For Sale By Owner you are opting to sell your home without the assistance of an agent. (Hint: most home buyers DO work with agents, so co-op’ing something to a Buyer Agent would definitely get you more buyer traffic, and a better chance at selling.)

Now, the first two listing agreements are the most common and also the most misunderstood:

Exclusive Right to Sell

An Exclusive Right to Sell agreement is when a home seller signs an “exclusive” agreement with an agent. The agent represents the interests of the home seller and gets paid the agreed upon commission at time of successful close, regardless of the source of the Buyer.

In most cases, the home seller agrees to pay the listing agent X% commission*. If the Buyer is represented by another agent, then that X% commission is split between the listing agent and the Buyer Agent.

*Note: Commissions are always negotiable and are decided between the agent and client at time of signed listing agreement.

This is the most common form of listing agreement in Colorado, as it takes most of the marketing, negotiating, selling and closing responsibility OFF the homeowner.

Read More: Colorado State Exclusive Right to Sell Contract

Exclusive Agency

An Exclusive Agency Listing Addendum is used when the listing agent agrees to EXCLUDE the home seller from the “source” of the Buyer. Basically, if the home seller is the one who finds and secures the home buyer, the listing agent will not get paid.

Per the Exclusive Brokerage Listing Addendum:

“This Seller Listing Contract does not apply to a Sale of the Property to a buyer procured solely by Seller without the assistance of Broker or any other person (Seller Sale).”

This addendum is usually used with former FSBO home sellers who may already have a few potential home buyers interested in the home before they listed with an agent. Or, when a home seller has the potential to sell it to a friend or family member, but lists with an agent “just in case” that buyer doesn’t work out.

Hopefully these explanations will clear things up next time YOU enter into a listing agreement.

For more information on listing your Colorado Springs home with a Realtor®, contact us today: 719.434.7525

 

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
Pictures of Colorado Springs
(719) 434-7525

The average sales price for a Colorado Springs home is $233,070. (Based on MLS data for April 2009)

We get a lot of inquiries from folks who think that the current economy will get them a “great deal”, or a super-cheap house. And although that is true in some parts of the country, Colorado Springs has a relatively stable economy, so the “deals” are not necessarily found in home prices.

See, Colorado Springs is home to 6 military bases, so there is a higher level of economic “balance” than in other areas of the country. I’m not saying that we are not feeling the crunch – just that Colorado Springs will NEVER see the high HIGH’s, nor the low LOW’s that other markets experience (like Florida, Nevada, California …).

Colorado Springs Real Estate Deals

If you are looking for a real estate “deal” they ARE out there. They are just not wrapped in the package of a super-low price. A Colorado Springs real estate deal means that you are getting MORE for your money. Maybe that plain-Jane 4 bed 3 bath home you wanted to buy in 2006, now comes with fresh paint, hardwood floors, a finished basement and a hot tub. Same price – More amenities.

Colorado Springs Cheap Homes

There are only 63 homes in all of Colorado Springs that are for sale under $100,000. (MLS info as of 5/21/2009) Most of these homes are only 1-2 bedrooms and well under 1,000 sf. and many of them also require some degree of fix-up before they are livable.

There are only 92 homes in all of Colorado Springs that are for sale between $100,000 and $125,000. (MLS info as of 5/21/2009).

Compared to the well over 4,000 homes for sale in the Colorado Springs real estate market, this really is not much of a selection.

Search All Colorado Springs Homes for Sale by Price Range

Colorado Springs Average Sales Price By Area

• West: $380,000
• Northgate: $371,918
• Black Forest: $328,032
• Briargate: $314,817
• Northwest: $259,673
• Northeast: $224,685
• Southwest: $219,319
• Marksheffel: $212,279
• Powers: 193,870
• East: $157,025
• Central: $128,801
• Old Colorado City: $127,511
• Southeast: 111,987

Check Out our monthly Colorado Springs Real Estate Market Reports

So, if you are looking for a “deal” you should be willing to spend about $200,000 … but you will get a great house!

“Based on information from the Pikes Peak REALTOR Services Corp. (”RSC”), for April 1-30, 2009 and May 21, 2009.  RSC does not guarantee or is in any way responsible for its accuracy.  Data maintained by RSC may not reflect all real estate activity in the market.”

 

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
Pictures of Colorado Springs
(719) 434-7525

A Colorado Springs HUD home is a single family residence (or duplex, tri-plex or 4-plex) that has been acquired by HUD (US Department of Housing and Development) as a result of a Colorado Springs foreclosure on a FHA-insured mortgage.

Once the home has gone through the entire foreclosure process, the property gets listed on the local Pikes Peak MLS as well as on the Colorado HUD Homes For Sale website.

HUD homes can be in various states of repair – ranging from great condition to homes that need quite a bit of help. If you are interested in a home that needs repairs, there are FHA Loans* that you may qualify for that enable HUD home buyers the ability to purchase the home and include funds to help cover the cost of the needed repairs.

*The 203(k) and the Streamline 203(k) loans allows the home buyer to include extra funds into their new FHA loan to cover rehabilitation, repairs, improvements and upgrades. Read More: About HUD and FHA 203(k) Rehab Loans

For more information on these types of loans, contact HUD directly for a list of a local FHA-Approved Lenders who offer the 203(k) loans: 1-800-CALL-FHA

HUD prefers to sell the homes to people looking to live in the home – as opposed to selling them to investors, so the homes will only be available to owner-occupants for the initial period of time.

Your Colorado Springs real estate agent can help you locate HUD homes for sale in different areas of Colorado Springs, Monument, Fountain and Manitou Springs and submit an offer on your behalf.

 

Thanks for reading our Colorado Springs Real Estate Blog!
Posted By: Mariana Wagner - Colorado Springs Real Estate Agent - Wagner iTeam
The Wagner iTeam is a power team of Keller Williams Realty,
specializing in Colorado Springs Real Estate and Monument Real Estate
Pictures of Colorado Springs
(719) 434-7525