As bank foreclosures and foreclosed FHA homes drag the housing market of Colorado down, another problem has reportedly emerged which is making the lives of homeowners worse – that of lost foreclosure paperwork. According to a number of homeowners, banks are pursuing foreclosures despite the fact that they remain current in their loans.
Several owners of Colorado Springs distressed homes and homeowners from other areas of the state who are facing foreclosures have reported that even after they have paid their mortgage, some banks continue pursuing foreclosure proceedings, mainly because paperwork are not in order and lenders seemed to have lost payment documents.
According to housing market observers, the high number of Colorado distressed properties and foreclosed homes has strained the processing system and caused documents to get lost. A couple has reported that they paid their mortgage last April, but after six months, their property title has yet to be given and their lien was not released by CitiMortgage.
The family revealed that Castle Meinhold and Stawiarski, the law firm for CitiMortgage, has not stopped pursuing the sale of their home through foreclosure despite the fact that a judge has already ruled that the couple is not in default. Housing experts have stated that foreclosures due to documentation problems are probably in equal number or even more than the number of foreclosed FHA homes in the state.
The confusing process involved in foreclosures has resulted in people investing in fixer uppers and buying foreclosed properties to shy away from the market as most of them have expressed fears over the validity of documents associated with foreclosures. In most cases, industry analysts report that documentation problems happen because the true owner of the mortgage has become hard to determine.
They stated that as mortgages are sold multiple times, ownership becomes a complicated matter to resolve. A number of cases have demonstrated this common problem, with homeowners not only having problems establishing their claim to the property but also facing mounting legal fees and other expenses that are supposed to be charges for processing and paperwork.
With these documentation problems becoming more prevalent in the state, analysts are predicting that the number of bank foreclosures and FHA homes in Colorado will continue to rise in the coming months.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites