Mitigation Counseling

Mediator Diagnosis – The Situation

  • Homeowner Borrower Property Notice of Election for Demand (NED) Filed
  • Trigger: Action Bank files NED with CO County Public Trustee’s Office against Borrower & Property
  • (The Public Trustee sets the Sale Date between 110-125 calendar days after the NED is recorded)

Counselor Diagnosis – Personal Conversation Diagnosis:

  1. Situation Diagnosis Analysis – Change-In-Circumstances (CIC) causing Difficulty in Paying Mortgage
  2. Homeowner Still Residing in Property & Need For Appropriate Housing Going Forward
  3. Likelihood of Homeowner to Again Beginning Mortgage Payments Going Forward

Counselor Services – Review & Corrective Course of Action (COA) & Solution Selection
(No Foreclosure Recorded)

  1. Based on Change In Circumstances (CICs) & Ability Cure Loan Deficiencies – Review Corrective Action Options (COAs)
  2. Assist Homeowner to Understand:
    1. Their Situation Course-of-Action (COA) Homeowner Options
  3. Homeowner must choose best COA for them

Counselor Solutions – Based on COA Homeowner Selected – Provide Referrals –
(No Foreclosure Recorded):

  1. Able to Recover – Recommend Homeowner Contact Their Mortgage Company to Negotiate:
    1. Loan Modification
    1. Forbearance Agreement
    1. Refinance
  2. Want to buy more time to stay in property and determine if can Recover:
    1. Have Homeowner Contact Their Bankruptcy Attorney to File Bankruptcy
  3. Equity Partnering or Subject-To or Short Sell – Refer Investor (YC Investor) Subject to Deficiency Judgement
  4. Sell As-Is – Refer Real Estate Broker (YC Broker)

Counselor Solutions – Based on COA Homeowner Selected – Refer to Homeowner to their Mortgage Company

  1. Deed-In-Lieu of Foreclosure (Giving Up & Anxiety Ridden) – (Foreclosure Recorded Against Homeowner Credit) & Eviction? Subject to Deficiency Judgement

Counselor Solutions – Based on COA Homeowner Selected – Refer Homeowner to County Public Trustee

  1. Do Nothing Stay/Leave Property & Have Foreclosure Go Full Term (Sold at Auction) & Eviction… if sold for less than owed Deficiency Judgement If sold for more than owed excess returned to borrower (Foreclosure Recorded Against Homeowner Credit) & Eviction! Subject to Deficiency Judgement and may require court action to collect excess purchase funds from bank

Important Information

We are Foreclosure Counselors and when, it is determined that the homeowner can no longer service the mortgage loan, our affiliates, may in fact provide services involving partnering ownership when providing funds to: 1. Cure the homeowner’s mortgage loan, 2. Paying off the mortgsage or contining to make homeowner’s mortgage payments and 3. Provide improvements to the make the property highly marketable, optimizing net equity if sold or put into property management. Then sharing the net proceeds (above mentioned costs) with the homeowner estate. All of these affiliate services greatly increase the homeowner’s estate net worth.

Understanding Colorado’s Foreclosure Protection Act