Foreclosures in Denver, etc.

Good day Bloggees!

Today's post will be fairly short, and sweet. It has to do with a very close thing to every dealmaker's heart- the latest and greatest on foreclosures.

Colorado state legislation just changed the Foreclosure laws in Colorado, which means:
1. Colorado is a Public Trustee state. This means that a Non-Election of Demand (NED) is filed with the public trustee, starting the foreclosure process.
2. All things said and done, the changes to Colorado Foreclosure Law is this: instead of the sale taking place no less than 45 days and no more than 60 days to the Public Trustee. However, under the new law, the owner has a longer period of time to cure- no more than 125 days. The new law also takes away a redemption right after the sale. Here is a good explanation of this new change: http://www.cohoalaw.com/money-matters-the-new-foreclosure-laws-and-the-right-to-cure-and-redeem.html

Any Title Company and Title Rep will be able to explain this process.

So many people have caught the fever of buying incredibly low ("hey, I am looking at a deal! I want a full list of foreclosures!") Foreclosures are a difficult piece of the real estate market. I like to call it the Boulevard of Broken Dreams. The radio and newspaper ads aren't lying, but anyone looking for lists of foreclosures, it isn't like a list of doctor's offices.

Now is a great time to buy, but trying to find a "steal"- you may not want to subject yourself to the headache.

There are a lot of time frames and laws that you need to follow to make sure it is done correctly. Additionally, people are not quite ready for what they walk into. Many foreclosures are a result of poorly structured loans. Someone said that the current market conditions took renters, made them homeowners, then made them renters again. This is exactly true.

The foreclosure process is painful, and really difficult. Other than the legal and real estate side of things, there is a lot to consider. How much work are you going to put in to this home? Do you want to put this much work in this home? Is it possible to even subject yourself to the kind of things you will find in a foreclosure?

This picture was taken yesterday at a foreclosure. About $40,000 (that is right, I said 40) worth of work needed to be put into this house. This picture was taken of the boiler, which was completely rusted out. A new boiler needed to be put into a tiny crawlspace, littered with rat droppings. The plumber working on this thing said: "I will not do this boiler, nor subject my employees to this kind of envionment." 'Nuf said.

You can find certified foreclosure experts, but make sure they have an active real estate license, and make sure that they know what they are talking about.

Thanks for reading- I am heading to the mountains to do some ski-camping! More on this stuff later!

Ed