For most Colorado residents, the most important asset they own is their home. Understandably then, Colorado residents spend a great deal of time working to pay for, and maintain, their home.
Unfortunately, when financial crises strike, whether in the economy as a whole or through a medical emergency or other event in a person's life, the consequences can be staggering for homeowners. It can be difficult to keep on top of mortgage payments once a person gets deep in debt, which can lead to fears of losing the family home.
This very process happened for thousands who lost their home after the struggles of the economy over the last several years. Now, some are finally seeing some relief from that process, as settlement checks are being mailed out to those who submitted claims in a mortgage settlement deal reached involving five big banks. The checks, sent to nearly 23,000 Colorado borrowers, total more than $32.8 million, with individual checks of about $1,480 each.
Of course, for those who still have their homes and are deep in debt, they may be looking for ways to stop foreclosure. One way individuals can accomplish this goal is by filing for Chapter 13 bankruptcy, which sets up a repayment plan and an automatic stay on collection activities. With the stay in place, individuals may be able to become current on their payments.
What's more, after the repayment plan is set up, individuals can finally accomplish the task of paying down their debt. After the debt is discharged, individuals will achieve a fresh financial start, and can get back to their lives without the stress of worrying about foreclosure.
Source: Denver Post, "Coloradans to get $32.8 million in mortgage-settlement checks," David Migoya, June 5, 2013