Month: March 2016

Obtaining the Same Protection of Credit Cards When Making a Purchase with Cash or Debit Cards Online

By: Aaron Fransua

Shopping online comes with at least some inherent risks. There’s a risk that the product you purchased doesn’t arrive, a risk that it gets damaged during shipment, or even a risk that the shirt that gets delivered is different from what the seller portrayed online.

Many credit cards offer protections that will cover you in the event any of these problems occurs. But what if you paid for your order using your debit card or an EFT from your bank account? Typically, debit cards and EFT transfers will not cover you if something goes wrong with your online purchase, which is a significant disadvantage if you are trying to be responsible and not use a credit card for every purchase.

Fortunately, there still are methods that you can use to reap still the protections that credit cards provide for online orders even with paying with your debit card or bank account. Services such as Amazon Pay or Paypal are excellent alternatives that will allow you to pay for online orders with your debit or bank accounts while minimizing the typical risks associated with those online purchases.

Both services offer virtually the same guarantees, just operate under different names. For Amazon, it is their “A-to-Z protection.” (Btw here is fun little tidbit for you, this guarantee is portrayed in their logo, with the arrow pointing from the A to the Z). For Paypal, the guarantee operates under their Purchase Protection Plan.

As you can see from the above chart, the two payment options are pretty similar to one another. The largest difference is that Paypal gives the consumer double the time to file claims on any problems they may have.

Since these services allow you to purchase your online orders using debit cards or your bank account, they are excellent alternatives to paying with a credit card, and still have some peace of mind when you buy online.

 

Obtaining the Same Protection of Credit Cards When Making a Purchase with Cash or Debit Cards Online

By: Aaron Fransua

Shopping online comes with at least some inherent risks. There’s a risk that the product you purchased doesn’t arrive, a risk that it gets damaged during shipment, or even a risk that the shirt that gets delivered is different from what the seller portrayed online.

Many credit cards offer protections that will cover you in the event any of these problems occurs. But what if you paid for your order using your debit card or an EFT from your bank account? Typically, debit cards and EFT transfers will not cover you if something goes wrong with your online purchase, which is a significant disadvantage if you are trying to be responsible and not use a credit card for every purchase.

Fortunately, there still are methods that you can use to reap still the protections that credit cards provide for online orders even with paying with your debit card or bank account. Services such as Amazon Pay or Paypal are excellent alternatives that will allow you to pay for online orders with your debit or bank accounts while minimizing the typical risks associated with those online purchases.

Both services offer virtually the same guarantees, just operate under different names. For Amazon, it is their “A-to-Z protection.” (Btw here is fun little tidbit for you, this guarantee is portrayed in their logo, with the arrow pointing from the A to the Z). For Paypal, the guarantee operates under their Purchase Protection Plan.

As you can see from the above chart, the two payment options are pretty similar to one another. The largest difference is that Paypal gives the consumer double the time to file claims on any problems they may have.

Since these services allow you to purchase your online orders using debit cards or your bank account, they are excellent alternatives to paying with a credit card, and still have some peace of mind when you buy online.

 

Understanding Credit Cards

By: stu.climber

Credit cards work on the basis of borrowing money. When a consumer is issued a credit card the credit card company attaches a certain amount of credit to the card. When a consumer uses the credit card to make a purchase the consumer is borrowing money from the card issuer in order to pay for their purchase. Then, at a later date the consumer must pay back the card issuer. If the consumer pays back the card issuer past the statement due date the consumer will typically be required to pay back the money borrowed plus a specified amount of interest.

Credit cards will always require a credit card agreement which describes the features of the card as well as the relationship between the credit card company and the consumer. These agreements are usually dense and complex and anyone interested in understanding these agreements better should check the CFPB credit card agreement webpage. As stated above credit cards work by borrowing money from the card issuer and then paying the card issuer back for all of the authorized charges plus any interest or fees. Once again the CFPB provides excellent resources for the consumer posting a survey of credit card features. This is particularly helpful for consumers who need to find credit cards with features to meet their needs and available in their state.

If a credit card consumer consistently pays their credit card bills on time then the credit card consumer begins to build their credit score, a number used to predict how likely you are to pay back a loan on time, higher. (Anyone interested in finding out more about credit scores should check out CFPB’s “How do I get and keep a good credit score?”). If a credit card consumer is unable to pay their credit card company back the consumer may get hit with extra fees and increased interest rates increasing the consumer’s credit card debt. Unfortunately, once a consumer starts falling behind on payments it becomes more difficult to pay the increasing debt.

One of the main dangers of a credit card are that the consumer can lose track of their spending and spend more than they are able to pay. It is important that a consumer keep track and budget their use of a credit card. Not only will this help a consumer build their credit score and keep their debt low but also notice and report unauthorized charges on the card.

Understanding Pre-paid cards

By: Stu.climber

Many people don’t realize that pre-paid cards and credit cards are not the same thing, although a pre-paid card may have a card network logo (like Visa, MasterCard, Discover, etc.) on it, this card is different from a credit card. When you use a prepaid debit card to make a purchase you are spending money that has already been paid to put on the card. Credit cards and per-paid cards have different advantages and disadvantages for the consumer and it’s important to understand them for more information on credit cards see my previous post .

Typically there are two types of pre-paid cards. “Open-loop” cards are prepaid cards which have a network logo on them (Visa, MasterCard, American Express, or Discover) and can be used at any location that accepts that network. “Closed-loop” cards don’t have a network logo and typically can only be used at one store or group of stores, like a Starbucks gift card. Pre-paid cards that you can only use for a specific purpose, such as a transit card, is also a closed-loop card.

Prepaid cards can be reloadable, meaning you can add more money to them, or non-reloadable, meaning you can’t add money to them. A consumer will put a set amount of money on the card say $50. That card then can be used to purchase up to $50 worth of goods or services from business who accept that pre-paid card. The pre-paid card would then be unable to purchase more goods or services until more money is put back onto the card. However, many pre-paid cards will have additional fees or restrictions associated with its use and it’s important for consumers to understand how these fees and restrictions work.

The most common fees associated with pre-paid cards are monthly maintenance fees and transaction fees. A monthly maintenance fee is exactly what it sounds like a fee charged each month to maintain the card and account. With transaction fees, a fee is deducted from the balance on the card each time you use your card or for using the card more than a certain amount each month. If a consumer uses their card frequently, these transaction fees can add up very quickly. You may pay more for a card with transaction fees than with a card with a monthly fee, so you consumers should think about how they will use their card before deciding what type of card to get. In addition, some prepaid cards will waive the monthly fee if the consumer makes at least a certain number of purchases, loads a minimum amount of money each month, or links the pre-paid account to a direct deposit.

Privacy in the Digital Age: Data Tracking and Data Brokers

By: Dylan Sheji

It’s a bit of an understatement to say that the Internet changed everything, because it most certainly did. Almost all of humanity’s combined knowledge can be found on the Internet. Friends and family members that live thousands of miles away from each other can be brought together with a single click. There are billions of websites are out there that Internet users browse daily that have a wide range of utility. But as you browse the Internet, have you noticed that the ads you see on websites are starting to follow you? And that they relate to previous Internet searches or websites you’ve visited? These targeted ads are consequences of data tracking, the analysis of Internet user behavior on websites in order to identify buying intentions or interests. The blog posts I write will discuss data tracking, the companies tracking data, how Internet data is tracked, and methods we consumers can use to push back against the collection of our data. This blog post will discuss the concept of data tracking, the companies that track consumer data, and methods of data tracking.

As I said above, data tracking is the analysis of our Internet behavior in order to target consistently annoying personalized ads at us. Data tracking monitors your Internet activity similar to how your credit report tracks you with regards to your financial history. The companies that collect this information are called data brokers. Data brokers take the information they gather and sell it to other companies, namely advertising and marketing companies, in order to directly appeal and advertise to specific groups of Internet users. This is the reason why ads seem to follow us; companies are getting your Internet data in real time and directly advertising to you.

Who are these companies that are tracking our data? Some are foreign to a majority of consumers while others are names we see every day. For example, Facebook and Twitter, repositories of much of our personal data, are some of the top data brokers. And for good reason: we willingly publish so much information about ourselves on these public platforms, and as their privacy statements make clear, what we share is readily available to the rest of the world, including other data brokers and advertising companies. Facebook further developed it’s utility to advertisers in 2014, when it bought Atlas, an ad server, from Microsoft. Atlas allows marketers to measure consumer data and target consumers across all digital sites, not just limited Facebook, and even across every type of device. Other data broker companies are relatively unknown to the average consumer, for example the largest data broker, Axciom, which collects on average 1,500 pieces of information on more than 200 million Americans. Another such company is eBureau, a company that sells Internet profiles to online marketers complete with a real-time scoring system for about 220 million Americans, so that marketers can sell you exactly what you need when you need it.

Now that you know who is tracking our data and why, how do these sites collect information from their users in the first place? The main method of tracking is through “cookies,” small bits of text that are downloaded to one’s browser as one uses the web. These text files contain small strings of numbers that can be used to identify individual computers. Cookies can come the website the user is visiting, called first-party cookies, or from some other website, called third party cookies. First party cookies used by websites are typically not used for advertising, but to analyze website traffic and figure out who is visiting the site and why in order to increase traffic. Third party cookies are more insidious, and can come from any of the companies I listed above without consumer approval or awareness. Most websites have a variety of third party cookies hidden within them. Facebook and Twitter widgets that one sees on many websites also contain these third party cookies. Cookies lack any personal identifiers and aggregate a user’s tracking data from multiple sites to infer interests. This “aggregated not personal” concept is the reason why these tactics are legal; they are anonymous data bits used for marketing purposes and not to track your credit or finances, which is heavily regulated by the government.

At this point all of this data tracking sounds a little too Big Brother, and though there can be positive benefits to receiving personalized ads for items you may actually really need, the easy dissemination of our data is nonetheless frightening. Fear not consumers, in my next blog post I will go over various methods to prevent data brokers from analyzing your Internet data.

Privacy in the Digital Age: Data Tracking and Data Brokers

By: Dylan Sheji

It’s a bit of an understatement to say that the Internet changed everything, because it most certainly did. Almost all of humanity’s combined knowledge can be found on the Internet. Friends and family members that live thousands of miles away from each other can be brought together with a single click. There are billions of websites are out there that Internet users browse daily that have a wide range of utility. But as you browse the Internet, have you noticed that the ads you see on websites are starting to follow you? And that they relate to previous Internet searches or websites you’ve visited? These targeted ads are consequences of data tracking, the analysis of Internet user behavior on websites in order to identify buying intentions or interests. The blog posts I write will discuss data tracking, the companies tracking data, how Internet data is tracked, and methods we consumers can use to push back against the collection of our data. This blog post will discuss the concept of data tracking, the companies that track consumer data, and methods of data tracking.

As I said above, data tracking is the analysis of our Internet behavior in order to target consistently annoying personalized ads at us. Data tracking monitors your Internet activity similar to how your credit report tracks you with regards to your financial history. The companies that collect this information are called data brokers. Data brokers take the information they gather and sell it to other companies, namely advertising and marketing companies, in order to directly appeal and advertise to specific groups of Internet users. This is the reason why ads seem to follow us; companies are getting your Internet data in real time and directly advertising to you.

Who are these companies that are tracking our data? Some are foreign to a majority of consumers while others are names we see every day. For example, Facebook and Twitter, repositories of much of our personal data, are some of the top data brokers. And for good reason: we willingly publish so much information about ourselves on these public platforms, and as their privacy statements make clear, what we share is readily available to the rest of the world, including other data brokers and advertising companies. Facebook further developed it’s utility to advertisers in 2014, when it bought Atlas, an ad server, from Microsoft. Atlas allows marketers to measure consumer data and target consumers across all digital sites, not just limited Facebook, and even across every type of device. Other data broker companies are relatively unknown to the average consumer, for example the largest data broker, Axciom, which collects on average 1,500 pieces of information on more than 200 million Americans. Another such company is eBureau, a company that sells Internet profiles to online marketers complete with a real-time scoring system for about 220 million Americans, so that marketers can sell you exactly what you need when you need it.

Now that you know who is tracking our data and why, how do these sites collect information from their users in the first place? The main method of tracking is through “cookies,” small bits of text that are downloaded to one’s browser as one uses the web. These text files contain small strings of numbers that can be used to identify individual computers. Cookies can come the website the user is visiting, called first-party cookies, or from some other website, called third party cookies. First party cookies used by websites are typically not used for advertising, but to analyze website traffic and figure out who is visiting the site and why in order to increase traffic. Third party cookies are more insidious, and can come from any of the companies I listed above without consumer approval or awareness. Most websites have a variety of third party cookies hidden within them. Facebook and Twitter widgets that one sees on many websites also contain these third party cookies. Cookies lack any personal identifiers and aggregate a user’s tracking data from multiple sites to infer interests. This “aggregated not personal” concept is the reason why these tactics are legal; they are anonymous data bits used for marketing purposes and not to track your credit or finances, which is heavily regulated by the government.

At this point all of this data tracking sounds a little too Big Brother, and though there can be positive benefits to receiving personalized ads for items you may actually really need, the easy dissemination of our data is nonetheless frightening. Fear not consumers, in my next blog post I will go over various methods to prevent data brokers from analyzing your Internet data.

Taking Back Our Data: Cutting Down on Data Tracking

By: Dylan Sheji 

In my last blog post, I told you about how data tracking and data brokers operate, and how they are gaining access to your Internet data. Now that you know who is looking at your data and how they are getting it, this blog post will discuss several methods to limit the amount of your data available online for data brokers. These methods range from simple Internet maintenance to downloading third party apps and extensions that inform you what companies are tracking the sites we visit and provide options for stopping this tracking.

The easiest is to delete your browser’s cookies and data every time you finish browsing. To do so, go to your browser’s preferences and go to the “Privacy” section. In this section select either “clear browsing data” or “remove all website data” to remove cookies. Deleting cookies breaks the link between the user and the cookie identifier assigned to the computer. Yet this doesn’t stop the tracking because, upon the next browse, the server will assume a new person has visited the site and re-assign a cookie value. And some cookies can get around deletion entirely. Flash cookies, a newer type of cookie, allows for the “re-spawning” of cookies, which allows companies to reinstate deleted cookies. Still, deleting your cookies and browser data is a helpful method to cut down on tracking and to free up data on your computer.

Browsers also have options to opt out of tracking on the browser. These options are still located in the Preferences > Privacy tabs of the browser. However opting out has limits, and opting out of one company’s data mining doesn’t prevent another company from mining your data. On Google Chrome, you can have Chrome send a “Do Not Track” request with your browsing traffic. On Safari, under “Privacy” options choose to block cookies and other website data from third parties and advertisers and also select “Ask Websites Not to Track Me.” However, as Chrome’s pop up states after selecting “Do Not Track,” a request is sent while browsing. This doesn’t guarantee that tracking will stop, just that a request is sent. Chrome’s “Do Not Track” pop up even states “many websites will still collect your browsing data.” Again despite their limited effectiveness these are the best methods to reduce data collection without using third party programs.

Third party programs are the most effective methods of reducing data tracking. These programs will let you know who is tracking your data and give you options to stop the tracking. The two most effective programs that I found are Ghostery and Disconnect. Ghostery is an extension that allows users to decide which tracking companies to trust and which ones to block, giving users more control over what companies gets their information. When you click on the Ghostery widget on your browser, it will tell you which companies are tracking the site you are on and allow you to shut them off. The only real downside to Ghostery is that users must manually select the trackers they want to block. Because there are hundreds and hundreds of trackers consumers most likely do not know which ones to block. Ghostery compliments this by providing details about the various trackers on each site, so consumers can inform themselves about which tracking companies are present before shutting them off.

Disconnect is similar to Ghostery but acts in an opposite way, automatically shutting down third party trackers that collect and retain data while allowing first party trackers to operate. Disconnect groups trackers into four categories: Advertising, Analytics, Social, and Content. The Content section is not automatically blocked because this could affect what content the webpage you visit shows, but these trackers can also be turned off. By blocking these trackers these apps allow for greater consumer data management and increase browser performance by removing said trackers.

Data tracking has become a profitable and stealthy marketing system that takes advantage of user data to advertise to consumers. With the methods listed above, you the consumer can start to take back control of your private information.

Guide To: How to Bring a Suit in Small Claims Court

By: jjrbennett

Intro

This is a corollary to my previous blog post

  • Guide To:  Landlord/Tenant Security Deposit Dispute.

The scope of this blog relates to bringing suits over security deposits with your previous landlord in small claims courts; however many of these steps can be followed for any suit in small claims court.

Where Can I File My Suit?

Tenants can bring suit in the county which the defendant (landlord), at the time of filing, either

  • Resides
  • Is regularly employed
  • Has an office for the transaction of business, or
  • Is a student at an institution of higher education

Tenants can also bring suit in the county where the subject real property is located (i.e. the county where your rental unit is).

 

Steps to Filing Your Claim

Step 1 – Complete the JDF 250 (Notice, Claims, and Summons to Appear for Trial)

Form JDF 250 can be found here

The form requires you to identify the names and addresses of the parties. In this case

  • Plaintiff = tenant (you)
  • Defendant = landlord

If the defendant is a business, then you must go to the Colorado Secretary of State’s website to determine who is the registered agent to complete service of process.

 

Example: Boulder Property Management Corp.

 

Step 1: Put the business’s name into the first search box, then search

 

Blog Post Pic 1

Step 2: Click on the appropriate # ID Numbe

Blog Post Pic 2

In this case the correct ID Number is #4. To ensure that this is the particular business you are interested in, select the link with:

  • The correct Name of the business
  • The Event listed as “Articles of Incorporation”
  • The Status is listed as “Good Standing”

 

Step 3: Locate their registered agent

Blog Post Pic 3

In this case, the registered agent is Jared E Minor

**If your landlord is a government agent, there are few more pitfalls. This is outside the scope of this blog. However the details can be found in §24-10-109 of the Colorado Revised Statutes

  • Link: https://www.denvergov.org/content/dam/denvergov/Portals/671/documents/CRS%20Title%2012%20Article%2010%20-%20Governmental%20Immunity.pdf

 

Step 2 – File Your Form with the Court

Locate your preferred court that has jurisdiction over this case (see above). Provide the court with your completed JDF 50 and pay the fee. The court will provide you with a court date or instruct you in mediation measures.

 

Step 3 – Serve your Landlord

The landlord must receive notice of the lawsuit. This service must be completed 15 days before the trial date or the trial may be reschedule or dismissed.

There are two options to complete service of process

 

  1. Personal Service

This is the preferred method by the courts. YOU CANNOT SERVE YOUR LANDLORD YOURSELF. Personal service of process can be accomplished in one of three ways:

  • Sherriff’s Department
  • Private Process Server
  • A friend whom is 18 years old or older and not a party to the case.

The process server must be provided with one copy, for each defendant, of the following:

  • The Notice, Claim, and Summons to Appear for Trial
    • Listed as “Defendants Copy” on the JDF 50
  • Affidavit of Service
    • Again, located on the JDF 50

The process server will return the completed Affidavit of Service portion to you. This should be brought to the court at the time of the hearing or filed ahead of time.

 

  1. Certified Mail

You can ask the court to conduct the service of process for you. The courts do not like to do this and it is not preferred. There is a small fee involved and it could delay your case.

**Service of process fees are usually granted to winning party at trial!

 

Preparing for the Court Trial

Small claims courts are informal and without a jury, so forget what you learned in Law and Order. However there are some parallels to what you might have seen on TV.

Gathering Relevant Documents

You must know your state security deposit rules. Don’t worry, they are not that complicated. However it is embarrassing to be dismissed by a judge because you were unaware of the relevant local and state laws. Bringing a copy of these laws is never a bad idea. This webpage provides a nice starting point, along with the Consumer Tips link located at the top of the blog.

You should also bring:

  • A signed copy of the lease or rental agreement and any other supporting documents your landlord provided for you at signing.
  • Receipts or cancelled checks for your security deposit
  • Any cleanings fees you paid to your landlord if applicable
  • Move-in/Move-out photos and videos if applicable
  • Witnesses (See Below)
  • Anything else you deem relevant

Witnesses

It is sometimes beneficial to have one or two witnesses who are familiar with your rental property and can testify on your behalf. The court will accept written statement from witnesses in most cases. Preferably these should be voluntary witnesses. However, if you deem it necessary, you can issue a subpoena to involuntarily bring a witness to court, this can be accomplished through a JDF 79 Form. Link with the Form and instructions on how to file is below

 

You’re Day in Court

These tips may be obvious, however they are important enough to include.

COME EARLY.

  • Judges and magistrates do not like to be kept waiting.
  • Also any courtroom can be an intimidating place. Some judges and magistrates will allow you to observe other trials. This may be a good practice to alleviate some of those fears.

BE PREPARED

  • Make copies, organize, and label all of your exhibits.
    • Exhibits are any documents, photographs, videos, etc. that you will produce as evidence at trial

 

Outcome

If you have a successful outcome, the court will determine the amount of damages owed. You are responsible for collecting this money, not the court. Additional collection information is located below:

 

 

I hope this is helpful. Best of luck with your day in court!

Guide to: Landlord/Tenant Security Deposit Disputes

By: jjrbennett

Guide to: Landlord/Tenant Security Deposit Disputes and Small Claims Court

 

Intro

The primary reason tenants bring suits against landlords is for security deposit disputes. Many of us are angry when we feel we did not receive everything that we are entitled to. However not all security deposit deductions or withholdings are unjustified. For a basic overview of your rights relating to security deposits, see below:

 

When Should I Bring Suit in Small Claims Court over a Security Deposit Dispute?

Nobody wants to go to court. It can be very time consuming and aggravating. However if

  • A landlord has withheld a security deposit for 30 days after you have vacated the premises (or longer if stipulated in the lease, not to exceed 60 days); OR
  • You feel the deductions are unjustified

Then it may be time to go to court.

Landlords can deduct money from security deposits for a number of things (for a fuller understanding, refer to the Consumer Tips webpage link above). Landlords CANNOT deduct for normal wear and tear to the property. For a list of what normally constitutes “wear and tear” versus “damage or excessive filth” see below

 

How Much Can I Collect from My Landlord in Small Claims Court?

Tenants can sue landlords in small claims court for the return of their deposit, up to a dollar amount of $7,500. The amount recovered is usually the amount the judge or magistrate deems the landlord has wrongfully held plus, perhaps, a filing fee. If you believe your claim is for over $7,500, then small claims court is not the place for you, or, you can waive the excess balance.

 

What are the Benefits of Suing in Small Claims Court?

Inexpensive.

  • Filing fees for all Colorado small claims courts are as follows
    • Claim up to $500 = Filing Fee of $31
    • Claim between $500.01 and $7,500 = Filing Fee of $55
  • There could be additional fees for service of process, but these are usually reimbursed if you win your case.
  • NO ATTORNEYS FEES
    • Attorneys aren’t allowed in most small courts claims.
    • Disclaimer:
      • An attorney will be allowed to bring or defend a claim if that attorney is an employee, officer, or partner in a corporation involved in the suit OR an authorized active member of a union involved in the suit.
      • If the other party is represented by an attorney, you may have one as well

Fast

  • Disputes are heard before a judge or magistrate within a month or two

 

What About Mediation

Mediation is where a neutral third party negotiates a mutually acceptable agreement between yourself and your landlord. It is a good method of resolving your dispute without the headache of going to trial. Some magistrates and judges will require mediation before a trial can be heard. Mediation services are available at:

I hope this helps!

 

For an in-depth analysis on how to file a claim in small claims court, see my corollary blog post:

  • Guide to:  How to Bring a Suit in Small Claims court

 

Zombie Mortgages – Don’t Let It Happen to You

By: Beth Michaels

What is a Zombie Mortgage?

Zombie mortgages occur when a bank notifies a homeowner that it is foreclosing; the homeowner vacates the property; but then the bank abandons the foreclosure without notifying the homeowner. This leaves the home in a state of limbo. No one lives there, but the homeowner technically still owns it.

Why Would a Bank Abandon a Foreclosure?

Owning and maintaining a property is expensive and time-consuming. The legal owner has to keep the house in good repair and pay property taxes. Reselling a property can also be costly, and, depending on the sale price, the bank could even lose money on the deal (if the outstanding loan is more than house sells for).

Zombie foreclosures are less common in places like Boulder, where home prices are relatively high and houses sell quickly. But in places like Detroit, where housing prices have not recovered, banks do not want the expense of owning and maintaining properties that they cannot sell. For this reason, the bank may send foreclosure notices as a matter of course but then never pursue the foreclosure because it is just not profitable.

Zombie mortgages can also happen if a homeowner cannot pay their mortgage and wants to voluntarily give the house to the bank in exchange for the bank forgiving their loan. (This is called a “deed in lieu of foreclosure.”) If the bank does not accept the deed in lieu of foreclosure, then the deed remains in the homeowner’s name and he is still responsible for the house and the mortgage, even if he has abandoned the property.

How Does Abandoning a Foreclosure Affect the Homeowner?

Homeowners who are being foreclosed may not be able to fight the foreclosure (usually because they don’t have the money), and so when they get the foreclosure notice, they simply abandon the house. But they still own the property until the bank completes the foreclosure process. As the legal owner, they must maintain the house and pay property taxes. And because the foreclosure was never completed, their mortgage is still alive. That means that even after abandoning the home, the owner is racking up thousands or tens of thousands of dollars in property taxes, fines, and mortgage interest, fees, and penalties.

How to Avoid a Zombie Mortgage

Keep yourself informed about the status of the foreclosure until you are sure it is complete and the deed has been transferred to the bank. You can search for the property status and request documents on the Boulder County Clerk & Recorder website at https://recorder.bouldercounty.org/countyweb/disclaimer.do.

If you want to use a deed in lieu of foreclosure, make sure that the bank is willing to accept the deed and that the deed has actually been transferred to avoid a zombie mortgage.