Understanding Mortgage Default Rate in Denver, Colorado
What is mortgage default?
According to RocketMortgage, “Mortgage default occurs when a homeowner fails to uphold the agreed-upon terms defined in their promissory note or deed of trust they signed when taking out their mortgage. It’s possible to default on a mortgage loan in a few ways, the most common being if a homeowner stops making monthly payments.”
Statista.com says that in the United States, the delinquency rate on payments (over 30 days) reached 3.5 percent in the first quarter of 2023, down from 8.22 at the beginning of the pandemic.
How does the mortgage default process work in Colorado?
The mortgage default process begins when your Denver mortgage loan payment is 30 days overdue. At this point, the lender will send you a warning letter giving you a chance to catch up on your payments. If you don’t have the funds, your mortgage lender can start looking into selling the house.
Common causes of mortgage default
Bad luck can hit anyone in Denver and cause them to get behind on mortgage loan payments and go into mortgage default, and it can happen quickly. According to Kiplinger.com, “Some 61% of Americans of all income brackets were living paycheck to paycheck as of July.” That’s the majority of us!
Common problems that cause mortgage default include loss of employment, high mortgage rates, medical problems, death, inflation, or anything that negatively affects household income.
What can you do if you’re facing mortgage default in Denver?
Fortunately, there are a few things you can do if you’re in mortgage default:
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Try to refinance your house to get lower mortgage payments.
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Talk to your lender and see if you can work out a payment plan. According to the U.S. Department of Housing and Urban Development (HUD), “If you are experiencing difficulty communicating with your mortgage lender or servicer about your need for mortgage relief, there are organizations that can help by contacting lenders and servicers on your behalf. HUD also provides other assistance to people who are facing mortgage default and foreclosure.
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If you have an FHA loan, call the agency at 800-225-5342 to see if any help is available.
How selling your house to We Buy Ugly Houses® in Denver can help
If you’re dealing with mortgage delinquency in Denver and you decide you want to sell your house, you can work with We Buy Ugly Houses. We close fast, often in as little as 3 weeks. We pay cash, which you can use to pay off your mortgage debt. Our property specialists give fair offers for houses in Denver because they are real estate experts who live there and know the local housing market. They can determine your house value by its condition and the prices that houses are selling for around you.
If your house isn’t in optimal condition, that doesn’t matter to us because we buy houses “as is.” To learn more, simply contact us and we’ll set up a free, no-obligation consultation at your Denver house. While there, our friendly property specialist will do a tour of your Denver house and answer all your questions. We can often give you a fair cash offer on the spot.
We Buy Ugly Houses is America’s #1 cash home buyer, in business since 1996 with a 95%* customer satisfaction rating and fantastic reviews. Contact us to learn how we can help if you are facing mortgage default in Denver.
