Representing Your Client in a Foreclosure

There are two main sides to a foreclosure – the borrower and the lender. There are many considerations when representing either side, but you can start by reviewing the following:

If you represent the borrower, begin by analyzing the client’s options.  A list of available workout options can be found at the Colorado Foreclosure Hotline website – Foreclosure Hotline Workout Options. Identify those that apply to your client and then contact the Lender to discuss the options for which your client will qualify. You will first need written authorization from your borrower-client, before the Lender will discuss the matter with you. You will also so need identifying information for your borrower – Social Security number and Loan number. If you are uncertain whether your client will qualify for certain programs, such as the FHA interest-free loan, explore this option with the Lender and review the programs and incentives they can offer.

If representing the Lender, you are probably handling the matter at one of the following points in the process: notice to cure, forbearance, foreclosure, deed in lieu or sale of the property (including short sales). You will need to make sure you comply with the Fair Debt Collection Practices Act and its Colorado equivalent during your negotiations with the borrower. The FDCPA is discussed in more detail in other blog posts.  Also in handling the case, be sure you are aware of your different roles under the Colorado Rules of Professional Responsibility. We will discuss the ethics involved in the foreclosure process in a later blog post.

By: Jean Arnold, Esq. Copyright 2013. Arnold & Arnold, LLP

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