Despite a recent decline, the foreclosure crisis continues to hold a grip on Colorado and the rest of the nation. However, it may be possible to prevent foreclosure or to even seek an alternative method of saving your home. One Colorado family may seek compensation for their home that has seemingly been affected by chemical contamination.

When they lived in the home, the family had been suffering from problems such as skin rashes and nosebleeds. When they moved out in early 2011, their medical conditions stopped. The house subsequently entered foreclosure and is now owned by Wells Fargo bank. A foreclosure sale had been scheduled for December 20, but it was delayed until April 11, 2012. The family believes this is due to the hydrogen sulfide inside the home.

The family believes their health issues stemmed from high concentrations of hydrogen sulfide. Hydrogen sulfide is a toxic gas that smells like rotten eggs and is usually associated with gas drilling activities. Indeed, near the family's home is a drilling operation by Antero Resources. The family alleges that the drilling contaminated their well water and rendered their home essentially uninhabitable.

When a house is rendered uninhabitable by outside factors, it is often beneficial to still try to prevent foreclosure lest one's credit report be negatively impacted. Here, the Colorado family may have been able to prevent foreclosure by filing a suit against the drilling company for medical and compensatory damages. In other cases, bankruptcy may be the preferable option. There are many bankruptcy myths out there, but personal bankruptcy can sometimes be a good option for people to regain their financial footing. By entering bankruptcy, it may also be possible to prevent foreclosure while debt obligations are restructured.

Source: Glenwood Springs Post Independent, "Vacated Silt Mesa house stalled in foreclosure process," John Colson, Dec. 20, 2011