We are often asked about foreclosure opportunities in Aspen. Though more prevalent now that in years past, for 2008 Pitkin County foreclosure filings numbered 30, about twice that of 2007-yet only 5 each year actually made it to auction. For May of 2009, county records indicate 11 properties were in foreclosure proceedings. One notable sale that occurred just prior to auction was the sale of a ski-in/out 13,544 square foot home on Buttermilk Mountain popular during the X Games. Originally listed for $26 million, this home sold during foreclosure proceedings for $12 million, according to an article published in the Aspen Times.
1. Foreclosures. Here a foreclosure occurs when a borrower defaults on an obligation and is sent a Notice of Election and Demand by his/her lender, which is filed with the Public Trustee of Pitkin County. Once that document is filed, potential buyers can request a list of homes about to be auctioned and attempt to purchase those properties. (In the vast majority of cases, these properties are already listed for sale, and a knowledgeable broker will know about them in advance).
The next stage is that the auction date is published in the newspaper 45 to 60 days before the home is sold. The owner has an option to cure by filing a Notice of Intent to Cure. Once purchased at auction, junior lien holders have eight days in which to purchase the property from the buyer for the sale amount plus interest. There is no longer a redemption period in Colorado following the sale.
After foreclosure, if no other buyers come forward, the home is returned to the lender who then lists the property as an REO (Real Estate Owned) opportunity.
2. Short Sales. A short sale occurs when the net proceeds from the sale of a property are not enough to cover the seller’s mortgage obligations and closing costs, and the seller is either unwilling or unable to cover the difference. Some short sellers may be pre-foreclosure. The lender has the right to go after other assets of the borrower to make up for the deficiency. The best time for a borrower to consider short sale options with their lender is when they have had a catastrophic life change, i.e. illness, divorce, death, etc.
3. Deed in Lieu. Another option for borrowers to avoid foreclosure is doing a “deed in lieu” with their lender. Essentially the borrower agrees to give a deed to the lender for the property in satisfaction of the amount due on the loan.
I am very familiar with distressed property and can help guide you through the sale process or help you purchase one of these opportunities.
Tags: Deeds in Lieu, Foreclosed Homes, Housing Market, Real Estate Agent, Short Sales
Avg. Sales Price: $5,282,737
Avg. Days on Market: 316
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