Judicial and Nonjudicial Foreclosures Lawyers in Denver Helping Clients in Need
Life events such as job loss, medical debt, divorce, emergencies, or illness, among others, can put you behind on your mortgage payments and cause you to default on your home.
If a foreclosure is the only option, foreclosures take one of two paths—judicial foreclosure or non-judicial foreclosure. In Colorado, if you default on your mortgage payments, the lender may foreclose using either method.
In a Colorado foreclosure you’ll most likely get the right to:
- Preforeclosure notice
- Apply for loss mitigation
- Receive certain foreclosure notices
- Get current on the loan and stop the foreclosure sale
- Attend a court hearing
- Receive special protections if you’re in the military
- Pay off the loan to prevent a foreclosure sale
- File for bankruptcy
- Get any excess money after a foreclosure sale
When you are faced with a tough situation, you don’t have to go it alone with Ragab Law Firm, P.C. We can help you understand the judicial and non-judicial foreclosure process in Colorado if it reaches that point and other possible alternatives that could save your home or offer you a better path forward.
What is a Judicial Foreclosure?
A judicial foreclosure starts when a lender files a lawsuit asking the court for an order allowing a foreclosure sale. This type of foreclosure goes through the state court system, while a nonjudicial foreclosure requires no court supervision or limited court supervision.
While nonjudicial foreclosures are quicker and more inexpensive, a lender may choose a judicial foreclosure due to the following situations:
- The mortgage or deed of trust wasn’t recorded and thus, there is no lien priority. This process allows the lender to establish a priority as to who gets paid first from the sale, including any land records and second mortgages.
- An inaccurate legal description of the property or any changes to the property might force the need for a judicial foreclosure to confirm the property.
- A release was filed by accident, which shows the mortgage or deed was paid off, but a partial loan still exists
- State law changes might demand foreclosure mediation or a judicial or nonjudicial foreclosure process
- A missing junior lienholder might dictate the need for a nonjudicial foreclosure process to eliminate the lien altogether
If you are faced with a judicial foreclosure process on your traditional mortgage, don’t hesitate to call Ragab Law Firm, P.C., so we can discuss a potential and actionable plan to give you some needed peace of mind. Get started today with a free consultation at 303-557-2011.
What is a Nonjudicial Foreclosure?
Lenders will use a nonjudicial foreclosure process, which does not require court involvement when deeds of trust or power-of-sale clauses are involved. A nonjudicial process is not available for traditional mortgages.
In a nonjudicial foreclosure process, the borrower typically receives:
- A notice of default followed by a notice of sale
- A combined notice of default and sale
- A notice of sale stating that the property will be sold on a certain date, or
- Notice by publication in a newspaper and posting on the property or in a public place
In this scenario, a nonjudicial foreclosure process allows you to reinstate the loan and get caught up on what you owe, plus fees and costs, by a certain deadline prior to the sale.
While nonjudicial foreclosures are often quicker than the traditional foreclosure process, you might need help navigating some of the “what if” potential scenarios to ensure you’re protected. For example, a lender could file a lawsuit if the proceeds of the sale did not fully pay off the debt. You could be responsible for the outstanding balance of the loan.
Alternatively, in the instance this makes sense, Ragab Law Firm, P.C. can help you contest a nonjudicial foreclosure and file a lawsuit. This temporarily stops the court from selling the home until you can resolve the legal issues at hand. You will be granted a temporary restraining order, a preliminary injunction, and a permanent injunction to be used if the judge decides in your favor.
How Do I Avoid Foreclosure?
If you are behind on your house payments, it’s important to call an experienced foreclosure lawyer like Ragab Law Firm, P.C., and avoid a “wait and see” approach. This might prevent you from tapping into other alternatives available to you, and avoiding the foreclosure process altogether.
The more proactive you are after defaulting on your home payments, the better. We will explore all potential solutions, including:
- Working with your lender to discuss possible interim solutions such as forbearance
- Looking into Colorado state relief programs
- Loan modifications
- Selling the home
- Repayment plans
- Short sales
- Deeds in lieu of foreclosure
When life changes and you have to deal with the unexpected, you can turn to Ragab Law Firm, P.C. We will work to help you keep your home or find the best possible solution despite a challenging situation. Speak with a judicial and nonjudicial foreclosures lawyer today to discuss your options.
Discuss Options and Alternatives to Foreclosure
If you are behind or falling behind on your mortgage payments, you could be in danger of foreclosure without the help of an experienced estate lawyer.
When you aren’t sure where to turn or what step to take next, Ragab Law Firm, P.C. is here for you. Our goal is to share our knowledge and ensure you don’t get too far down the road without knowing all of your possible avenues, further damaging your credit or financial situation.
Our team of judicial and nonjudicial foreclosures lawyers will work diligently to identify the best strategies and possible alternatives to foreclosure and handle all legal aspects, including court proceedings and mortgage company negotiations.
If a lender didn’t follow protocol, you have a government loan, or you are in the military or experiencing pandemic-related complications, a simple consultation with Ragab Law Firm, P.C. can uncover your potential options and possible defenses if we need to represent you in court.
We have resources and options for you as soon as you pick up the phone. Call Ragab Law Firm, P.C. today and get much-needed legal advice and support from our team of knowledgeable foreclosure lawyers at 303-557-2011.