Can a lawyer give me help with a deficiency judgment in Colorado?

Legal help in the case of homeowner’s agreements, or really any binding legal transactions, is advised in virtually all situations. An attorney’s practiced eye can often pick out minor details, inconsistencies, and contradictions that someone without extensive legal training may miss. This generally results in an outcome advantageous to the party that sought legal counsel. At the very least, it can help an average person prevent undue expenses due to a less in-depth knowledge of all the processes at work.
Furthermore, any following actions taken against a homeowner or contract-holder due to a failure to uphold some aspect of the agreement can often be either mitigated entirely or worked out in a way beneficial to both parties.
This can manifest itself as, in this particular instance, preventing a lender or bank from obtaining the right to claim a deficiency judgment in the first place. 

How does living in Colorado affect this?

Events in the last 5 years created the need for protections for homeowners under Federal Law due to unfair bank practices, bringing about the inception and ratification of the Mortgage Forgiveness Debt Relief Act of 2007. However, this is only applicable in the case of tax liability, not the amount owed to the lender per the deficiency award.
Living in Colorado can affect outcomes of court proceedings because of that clause. As per the Colorado Division of Real Estate, short sales can be pursued by lenders as they can create a deficiency in the form of a court-awarded judgment. A short sale transaction therefore can create a deficiency liability in the same manner as a foreclosure sale.
Past and present Colorado foreclosure statutes allow lenders to pursue and collect deficiency judgments against borrowers. In addition to that, second and third mortgages secured against a property in foreclosure, which can be sold by the lender, can result in a deficiency judgment as well. 

What are my options as a homeowner?

In Colorado, homeowners are allowed to contest an unfavorable difference between the amount owed and the true value of the property. At the outset a buyer has the ability and legal right to set up the terms of a loan agreement so as to pre-empt a lender’s ability to collect a deficiency judgment in the first place. Some lenders will not agree to contracts set up in such a manner and others may require a buyer to sign a contract that specifically allows them that right.
In these cases, this is where it becomes advantageous to a homeowner or contract holder to consult a lawyer before signing into any legally binding agreements. A lawyer can see to it that contracts are fair as well as ensure that a client receives the best possible outcome in court proceedings following any wrong-doing.
 
Consult a lawyer immediately, if faced with court proceedings. There are many legal consultants that will offer counsel free or at low cost. Know, and exercise, your rights.