Homeowner and Mortgage Issues

My House was Damaged, and I Cannot Live in it. Do I Have to Make My Mortgage Payments?

It depends. If the house is uninhabitable, the contract cannot be performed under common-law theories, and should be cancelled due to impossibility. In that case, you would not be required to make mortgage payments.

If the house is livable, but damaged, you will be required to continue making mortgage payments. However, you should negotiate with the insurance company to get the house fixed. See the insurance section of this manual for more information.

Do I Have to Pay My Mortgage Note While I am not Living at the Property?

See the above answer. This largely depends on whether you are not living there because you cannot or because you are choosing not to live there. If it is simply hard to live there due to the damage, but you can make alternative arrangements and want to keep the home, you need to keep paying. If you stop paying, but could have lived there, you are in default.

What Should I Do if I Receive a Notice that My Lender is Going to Foreclose on My Home for Nonpayment of the Mortgage?

You could contact the Colorado Foreclosure Hotline.  Or, you could contact a lawyer. If you cannot afford a lawyer, you can contact Colorado Legal Services.

If you do not want to keep the house or knowingly allow the mortgage to go in to default, you can let the home be sold.

Can My Mortgage Holder Foreclose on My Home if I Cannot Make the Payments?

Yes. A mortgage holder can always foreclose. The only exception is the scenario discussed in the first answer in this section.