Ever since the real estate bubble burst you can’t find a single American who doesn’t know what the word “foreclosure” means. Most people have a decent grasp on the concept that the bank can reclaim your property if you’re not paying your mortgage, but beyond that, a foreclosure is a mystery of the financial world. The banks have been exposed as the culprits of thousands of foreclosures due to the surge in sub-prime lending (lending to individuals that should have never qualified for the loans they were given) in the early 2000’s. What most people know is that a bank can foreclose on your home, wrecking your credit for about seven years leaving you homeless and basically starting over in attempting to own property. These consequences, however, are just the tip of the iceberg for some.

That’s right, foreclosures can actually mean years of legal action for your family, with lenders, lien holders, tax collectors and insurance companies coming after you even after you’ve moved out of the property and on with your life. These foreclosures are being called “zombie foreclosures” and can haunt a family for years after the property is supposedly gone from their lives. There are a few ways this can happen, and if you’re facing foreclosure you should absolutely contact a real estate attorney before allowing the bank to take over your property. Real estate attorneys understand the laws in your state and can tell you all of the ways that the bank may be able to come back at you after you’ve relinquished your rights to the property. Here are just a few that we know of:

Banks coming back on dismissed foreclosures – Just because you’ve gone to court with the banks and your case has been dismissed does not mean you’re in the clear. Often times attorneys will be able to get your foreclosure dismissed if there was illegal or egregious conducts by the bank. This could be as simple as the lender’s attorney failing to prove that the borrower owes the money. Sometimes cases can be dismissed because of other technical, legal or constitutional reasons. If you owe the banks money and your case was dismissed due to a technicality, however, does not mean that you’re in the clear. You may have bought yourself some time for your attorney to work out a payment plan or settle with the banks, but don’t assume the war has been won.

The bank does not foreclose – Another way a bank can ruin your financial future is by telling you your home is being put up for auction, then for some reason the bank never follows through. You, as the owner, are under the assumption that you’ve walked away without a fight and that the bank will now handle the property. If something happens along the way and the house remains in your name, debt collectors can come after you for back taxes, debt to you lien holders, sewer removal, and more. As an Aurora real estate office, we highly recommend contacting a real estate attorney as soon as you’re in danger of foreclosure. Find out about your rights and how you may be able to save your property.

About PorchLight Real Estate: PorchLight Real Estate Group has the most experienced and knowledgeable Denver real estate agents in Colorado. For more information about homes for sale in Denver CO or specific neighborhood homes please visit www.porchlightgroup.com.

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