All the news about  Colorado Springs real estate seems to be bad..."The highest foreclosure rate ever"-"more people losing their homes" etc.  There are options for people who are in trouble with their mortgage company.  ONE THING YOU MUST KNOW: Most mortgage companies don't want to foreclose.  It costs them too much money.  It is cheaper to work something out with the borrower.  The typical choices are:

1.  Short sale.  The borrower agrees to sell but they owe more then the home is worth.  The lender can agree to accept a short sale.  A short sale is when the lender takes less then they are owed.  It helps the borrower avoid having a foreclosure on their record and it helps the lender not own any houses.  Mortgage companies are in the business of collecting mortgage payments not owning houses.  If the lender agrees to a short sale there may be tax consequences to the borrower.  Talk to a CPA about tax issues.

2.  Loan mods-Loan modifications.  A loan mod is when the mortgage company agrees to change the terms of the existing loan in hopes that the borrower will start paying again.  The different types of modifications include changing the length of the loan, the interest rate, or the amount owed. Usually the lender requires a financial statement and supporting documentation from the borrower to show that they can make the new payment.