Many Colorado homebuyers are familiar with the process of flipping a house. By buying a house, investing some work and materials into the house and then selling it to a new homebuyer, those in the practice of flipping a house hope to make a profit.
Despite the lackluster housing market over the past several years, a new report suggests the Colorado home flipping market is booming. What's more, it appears the struggles some Colorado residents have for debt relief is behind the boom.
The report indicates the number of homes flipped has increased 28 percent from the first half of 2012 as compared to the first half of 2011. It appears the surge is due, in part, to the high number of home foreclosures. Because of the lack of housing construction, those who flip homes are buying up foreclosed homes and selling them to buyers.
While that may be good news for those who flip homes, it may difficult news for those facing financial challenges who are trying to prevent foreclosure. Fortunately, for those residents, there may be alternatives that can stop foreclosure before the person loses their home.
By filing for bankruptcy, individuals may be able to impose a stay on foreclosure proceedings and stay current with their mortgage payments. The impact on the foreclosure will depend on the type of bankruptcy a person files for, as Chapter 7 and Chapter 13 bankruptcy have different requirements.
About half of the states also allow homeowners to regain ownership of their home under statutory redemption laws. These laws give the homeowner a period of time to pay the foreclosure sale price, while retaining possession of their home. Ultimately, individuals in need of debt relief and foreclosure help should consult a qualified bankruptcy attorney who can help determine the best option.
Source: NBC 11 News, "Foreclosures paving the way for house flipping," Christy Dimond, Dec. 13, 2012