How does the foreclosure process work in Denver?

How does the foreclosure process work in Denver? It is always a tough call to receive, the last thing as a Realtor I want to hear is that one of my past clients has fallen behind on their mortgage payments and is thinking they will have to let their house go to foreclosure. It is rather a long process that luckily gives the sellermany options to sell the house prior to foreclosure and even catch up on their payments ifthey are able. So before you just "let it go" make sure to talk to your agents about your options.

The foreclosure process involves six phases. These six phases are outlined in detail in a great article found on MSN.com, click here. Below is a synopsis of the process with more details available online.

Phase 1: Payment default
A payment default occurs when a borrower has missed at least one mortgage payment. The lender will send a missed-payment notice indicating that it has not yet received that month's payment.

Phase 2: Notice of default (NOD)
A notice of default is sent after 90 days of missed payments. In some states, the notice is placed prominently on the home.

Phase 3: Notice of trustee's sale
If the loan has not been brought up-to-date within the 90 days after the notice of default, a notice of trustee's sale will be recorded in the county where the property is located. The lender must also publish a notice in the local newspaper for three weeks indicating that the property will be available at public auction.

Phase 4: Trustee's sale
The property is placed for public auction and will be awarded to the highest bidder who meets all of the necessary requirements. The lender, or firm representing the lender, will calculate an opening bid based on the value of the outstanding loan, any liens and unpaid taxes, and any costs associated with the sale.

Phase 5: Real-estate owned (REO)

If the property is not sold during the public auction, the lender will become the owner and will attempt to sell the property on its own, through a broker or with the assistance of an REO asset manager. These properties are often referred to as "bank-owned."

Phase 6: Eviction
The borrower can often stay in the home until it has been sold either through a public auction or later as an REO property. At this point, an eviction notice is sent demanding that any people vacate the premises immediately.