Breckenridge Foreclosures and Summit County Foreclosures

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Foreclosures in Breckenridge and Summit County have increased in 2008 and we expect a further increase in 2009.  Due to Summit County and Breckenridge being second home markets, our foreclosure rate is much less than in other parts of the country.   We have foreclosure properties that vary from studio condos to multimillion dollar homes and lodges.

This page will guide you on how foreclosures happen, the different stages of foreclosure, and you will learn about short sales.

Basically, the foreclosure process starts when a homeowner quits making mortgage payments.  Most lenders start the process when the borrower is about 90 days in arrears.  After sending letters to the borrower, the lender will hire an attorney to begin the foreclosure.  The attorney will start the process and record a notice of default against the borrower at the Summit County Courthouse.  During this time period the borrowers will list their property for sale with a Realtor.

This notice is sent to the borrower and is printed in the newspaper for public notice.  The borrower will have 45-60 days to cure the default before the property is auctioned off to the public at the courthouse.  To cure the default, many times the lender wants the loan balance paid in full.  Other times the lender will want the delinquent amount paid plus legal fees.  The lender and attorney will decide.

If the property goes to auction, a buyer that bids on it must have certified funds at the time of auction to be able to buy, and must be physically present at the time of the auction. 

If the property has more than one loan against the property a foreclosure usually wipes out the debt of the second mortgage company.  This is one of the reasons short sales happen.   The second mortgage holder is usually willing to negotiate a smaller payoff than loose the whole mortgage balance. 

If the property being foreclosed has a good amount of equity above the mortgage balance, there is a good chance that the bank(s) that hold the mortgage(s) will buy it at auction and then turn around and sell it with a Realtor.

Short Sales

A short sale occurs when the borrower that is in default gets an offer on the property for sale.  Sometimes the offer is for less than the loan balance.  If this happens, the borrowers Realtor will negotiate with the lender(s) to see if they will accept less than what is owed on the property.  Some lenders will do short sales and others will not.   If the lender agrees to consider a short sale, there are several steps that must occur. 

1. The lender will call another Realtor and get a CMA.  This is a market analysis that gives the lender an idea of value of the property. 

2. The lender will than contract with a licensed appraiser to appraise the property.  The appraiser will do an appraisal and determine the value.

This process can take from one to two months.  Once the lender determines the value, they will negotiate with the Realtor and will get a limited power of attorney to do so.  The buyer of the property has a very good chance of getting a great deal at this point. 

To learn about Breckenridge foreclosures, Summit County foreclosures, or short sales contact us here.