Selling a Home
Facing Foreclosure.
If you're behind on your mortgage,and worried about foreclosure,first know this:you're not alone,and there are options. This page is about what those options actually are,how they work,and what to do first,with no judgement,and no pressure,and no promises we can't keep.
We're Jeff and Lane Morrell,a Colorado Springs real estate team with 24+ years in real estate,and 2,000+ homes sold,working with eXp Realty. We've helped homeowners facing financial stress understand their choices,and sell when selling made sense,and we know the right answer depends entirely on your situation,your lender,and your timeline. Here's what the possibilities look like,so you can see where you stand.
The Paths Homeowners Actually Have
Sell Before Foreclosure
List and sell the home before the foreclosure sale happens,and use the proceeds to pay off what you owe. You control the timing and the offer,your record avoids a foreclosure,and whatever equity remains stays yours. It requires listing before it's too late,and pricing at what the market will actually pay.
Short Sale
The lender agrees to accept less than the full amount owed,because the home is worth less than the loan. The home sells to a normal buyer,and the lender approves the price before closing. It takes patience,and paperwork,andi won't pretend otherwise,but for many homeowners it's the difference between a foreclosure,and a negotiated exit.
Loan Modification or Repayment Plan
Your lender agrees to change the loan terms,or spread missed payments out,to make the mortgage affordable again. This keeps you in the home,and it's worth asking about before anything else moves. Eligibility,and outcomes,are completely the lender's call,and yours to pursue with them directly.
Deed-in-Lieu of Foreclosure
You voluntarily transfer ownership of the home back to the lender,and they cancel the debt,or a portion of it,per your agreement,and skip the foreclosure process. It's typically considered only after other options are exhausted,and a lender has to accept it. It can be cleaner than a foreclosure,but it's not automatic,and it's not right for everyone.
The honest truth:the right answer depends on your situation,your equity,your lender,and your timeline. We can walk you through what each option looks like,and we'll never push you toward one. We also encourage you to talk with your lender,a housing counselor,and an attorney,because this is a moment where more good advice is never a bad idea.
What Is a Short Sale,and How Does It Work?
Price at the Market,Not at the Loan Balance
A short sale price is set by what buyers will actually pay for the home,not by what's owed on it. That's the part we handle,and we show you the data,so it's not a mystery.
Submit the Hardship Package
Your lender wants to see why the loan can't be repaid:income loss,medical bills,a move,and the rest. An experienced agent,or a short sale attorney,helps you assemble it properly,and completely.
Market It Like Any Other Home
Short sales still have to attract a real buyer,at areal price. That means photos,staging where it helps,and honest pricing,exactly like a traditional listing.
The Lender Approves,or Rejects,the Offer
Once an offer arrives,your lender reviews the price,and terms,and makes their decision. Sometimes they counter,or ask for more paperwork. The outcome is theirs,and ours is to present an offer as cleanly as possible.
Close,anda Settle the Remaining Debt
At closing,the lender receives the agreed amount,and any remaining balance is resolved per your written agreements with them. What that leaves for you,if anything,depends entirely on your lender,and your loan,and we'll tell you straight that we can't promise it in advance.
One more honest note:very generally speaking,a short sale is commonly understood to hurt credit less severely than a foreclosure,but the exact effect depends on your lender,your loan,and the rest of your financial picture. Only your lender can tell you what it means for you,your credit,and any future home purchase,and we'd rather point you to them than guess.
Start Here,Beyond Feeling Behind
Don't Panic
Foreclosure is a process,not an ambush,and it runs on a timeline you can know. The earlier you act,the more options exist,and most of them are calmer than the default.
Know Your Timeline
In Colorado,after your lender files the foreclosure packet,the sale is typically scheduled about110 to125 days after the notice is recorded,and lenders generally can't begin until the loan is roughly120 days delinquent. The exact dates for your case come from your lender's attorney,and the public trustee,so ask.
Talk to Your Lender Now
Your lender,or servicer,controls most of your options:forbearance,loan modification,payment plans,and short sale approvals all start with a conversation. Ignoring the letters is the one move that reliably makes things worse.
Talk to an Agent Who Knows the Process
We've handled pre-foreclosure,and short sales,for Colorado Springs homeowners,and we'll tell you honestly what your home could sell for,and how fast,along with what each path realistically looks like.
Get the Right Advice
A HUD-approved housing counselor can review relief options with you,often for free,and an attorney can explain your legal position,and Colorado specifics. We're happy to point you the right way,whether or not you ever use us.
What We Can Do,and What We Can't
What We Can Do
Price your home objectively,market it quickly,negotiate with buyers,and coordinate with your lender's approval process. We can also be straight with you about timelines,and realistic outcomes,and that's our job.
What We Can Do
Communicate respectfully,and without judgement,no matter when you call us,or how behind you are. There are no emergencies here,and no shame here,either.
What We Can't Do
Promise you a specific outcome. Your lender makes the final calls,and anyone who guarantees otherwise isn't being honest with you.
What We Can't Do
Forgive debts,or act as your attorney. We know our lane:real estate. For the legal,and credit sides,we'll point you to the people who actually do that work.
Foreclosure Questions,Answered Honestly
Can I sell my house if I'm behind on mortgage payments?
What is a short sale,and how does it work?
Should I sell my house before foreclosure?
How much debt will I owe after a foreclosure or short sale?
Who do I talk to if I'm facing foreclosure?
How long does the foreclosure process take in Colorado?
There Are No Emergencies in Real Estate.Let's Look at Your Options Together.
Text us at 719-321-0335 or book a free consultation and we'll help you see where you actually stand,and what your options really are,whether or not selling turns out to be the right one for you.