Colorado Foreclosures Are Up 57%: What Are My Options If I'm Behind on My Mortgage?
Short answer: if you're behind on your mortgage in Colorado, you usually have more options than you think. You can catch up (reinstate), ask your lender for a loan modification or repayment plan, sell the house while you still have equity, or do a short sale if you owe more than it's worth. The key is time. In Colorado, a foreclosure sale is usually set 110 to 125 days after the lender records its foreclosure notice, so the earlier you act, the more choices you keep.
And you're not alone. Colorado foreclosure filings jumped about 57% in the first half of 2026 compared to 2025, one of the biggest increases in the country (ATTOM).
I'm Simon Dzienis, a real estate broker with Your Castle Realty in Littleton. I've been in Colorado real estate for more than 20 years, and a big part of my work, together with my team partner Ewelina Kurka, is helping homeowners across the Denver metro who are behind on payments, underwater, or scared of losing their home. This guide explains how it works in plain English, and what you can do this week.
Why are so many Colorado homeowners falling behind in 2026?
According to ATTOM's Mid-Year 2026 Foreclosure Market Report, 3,943 Colorado properties had a foreclosure filing in the first half of 2026. That's up about 57% from the same period in 2025 and about 121% from 2024, the second-biggest jump of any state with at least 500 filings.
The reasons are the ones I hear every week: higher insurance, rising HOA dues and property taxes, adjustable payments, job changes, divorce, medical bills, and prices that went flat in parts of the metro. On top of that, the average 30-year mortgage rate hit 7.40% on October 8, 2026 (Freddie Mac), which makes refinancing out of trouble much harder.
Colorado's foreclosure rate is still lower than the national average, about 1 in every 657 homes. But if it's your home, statistics don't matter. The plan does.
How does foreclosure work in Colorado?
Most Colorado home foreclosures go through the county Public Trustee, not a long court case. The usual steps:
Missed payments. Your servicer sends late notices and usually a demand letter. Federal rules generally don't allow a servicer to start foreclosure until you're more than 120 days behind.
Notice of Election and Demand (NED). The lender files it with the Public Trustee, who records it in the county (Arapahoe, Jefferson, Douglas, Denver and so on). This is the official start.
Notices to you. The Public Trustee mails a notice within about 20 days of recording and another 45–60 days before the sale. The sale is also published in a newspaper for five weeks.
Rule 120 hearing. A short court step that authorizes the sale.
Foreclosure sale. For most homes, the sale date is set 110–125 days after the NED is recorded.
Colorado law also requires your servicer to give you a single point of contact, and it generally can't push a sale forward while it's reviewing a complete loss mitigation application (this is called "dual tracking").
Can I still stop a foreclosure in Colorado?
Often, yes. The main ways:
Cure (reinstate) the loan. File a written Intent to Cure with the Public Trustee at least 15 days before the sale, then pay the past-due amount plus fees in certified funds by noon the business day before the sale.
Loan modification or repayment plan. Call your servicer, ask for loss mitigation, and send a complete application as early as you can.
Sell the home. If you have equity, a regular sale pays off the loan and you keep the rest.
Short sale. If you owe more than the home is worth, your lender may agree to accept less than the full payoff.
Deed in lieu. You give the home back to the lender by agreement. Less common, and it needs lender approval.
Bankruptcy. Can pause a sale. That's a legal decision, so talk to a bankruptcy attorney.
Short sale vs. foreclosure: which is better?
A short sale is a normal sale on the open market where your lender agrees to take less than what you owe. Foreclosure is when the lender takes the home at a Public Trustee sale. For most people, a short sale is the better outcome:
Control: with a short sale, you and your agent pick the buyer and the timing. With foreclosure, the lender and Public Trustee do.
Buying again: Fannie Mae's waiting period for a new mortgage is 4 years after a short sale (2 with extenuating circumstances), compared to 7 years after a foreclosure (3 with extenuating circumstances). FHA, VA and other loans have their own rules.
Moving out: a short sale has a planned closing date. Foreclosure runs on the lender's schedule.
Privacy: a short sale looks like a normal sale. A foreclosure is published in the newspaper.
Whether the lender forgives the rest of the balance (the "deficiency") depends on the approval letter. Read it carefully and ask a Colorado attorney or CPA about any tax effect.
What if I still have equity in my home?
A lot of Denver-metro homeowners who are behind still have real equity, because prices rose so much over the last decade. If that's you, foreclosure is the worst way to lose it. A well-marketed regular sale lets you pay off the loan, cover your costs, and keep what's left. If a home does sell at a Public Trustee sale for more than is owed, the extra (surplus) goes to the owner, but you have to claim it, and you've lost all control over the price.
How long does a short sale take in Colorado?
Plan on roughly 60 to 120 days after a buyer's offer is sent to the lender, sometimes longer if there's a second mortgage or an HOA lien. If your sale date is close, the lender may agree to postpone it while the short sale is reviewed, but that's never automatic. Start the day you know you're in trouble, not the week before the sale.
A common example
This is a typical situation I see, with details combined and changed. It is not one specific client.
A homeowner in Littleton loses hours at work, falls four payments behind, and stops opening the mail because it feels too heavy. By the time they call me, the Notice of Election and Demand is already recorded. We get the real value of the home first. In this case they still have equity, so instead of a short sale we list right away, I am at every showing, and we go under contract before the sale date. The loan gets paid off at closing, the foreclosure is stopped, and the family walks away with the equity instead of losing it at a Public Trustee sale.
What should I do this week?
Open every letter from your servicer and the Public Trustee. Write down any sale date.
Call your servicer, ask for loss mitigation options, and get the name of your single point of contact.
Talk to a free HUD-approved housing counselor. Find one at hud.gov or call HUD at 800-569-4287.
Find out what your home is really worth today, from a local agent who knows your neighborhood, not just an online estimate.
Talk to an agent who handles short sales before you sign anything with a "we buy houses" company.
Watch out for scams. Never pay anyone upfront to "save" your house, and never sign your deed over to someone who promises to fix everything. If it sounds too easy, talk to an attorney first.
How I help Littleton homeowners facing foreclosure
Nobody plans to fall behind. It happens to good people. I start with a free, confidential conversation with no judgment and no pressure. Then I lay out every option side by side with real numbers: keep the house, sell with equity, or short sale.
Short sale and pre-foreclosure focus. I handle the lender paperwork, the buyer, and the timeline with you.
I'm at every showing. No lockbox. I (or Ewelina, my team partner) meet every buyer and buyer's agent in person, so your home and your privacy are protected.
Local. Based in Littleton, serving the Denver metro and the Front Range from Colorado Springs and Monument to Fort Collins and Windsor, including Evergreen.
Two languages. I work in English and Polish (mówię po polsku).
Frequently asked questions
How many payments can I miss before foreclosure starts in Colorado?
Federal rules generally keep servicers from starting foreclosure until you're more than 120 days behind. After the Notice of Election and Demand is recorded, the sale is usually 110–125 days later.
Can I sell my house if it's already in foreclosure in Colorado?
Yes. You can sell up until the Public Trustee sale. If you owe more than it's worth, the sale needs lender approval as a short sale.
Does a short sale hurt my credit less than a foreclosure?
Both hurt your credit, but the waiting period to get a new Fannie Mae loan is shorter after a short sale: 4 years instead of 7. Ask a lender about your situation.
Do I have to pay anything for a short sale?
In most short sales, the lender pays the real estate commissions and normal closing costs out of the sale. The exact terms depend on the lender's approval.
Are foreclosures going up in Colorado?
Yes. Colorado foreclosure filings were up about 57% in the first half of 2026 versus 2025 (ATTOM), though the state's overall foreclosure rate is still below the national average.
Who can help me with a short sale in Littleton, Colorado?
Simon Dzienis of Your Castle Realty, with team partner Ewelina Kurka, helps Littleton and Denver-metro homeowners with short sales and pre-foreclosure options. Call or text for a free, confidential consultation.
Talk to me today. It's free and confidential.
Simon Dzienis: 720-936-7873
Your Castle Realty (team with Ewelina Kurka) · Littleton, Colorado · 5280HomeSold.com · SoldInOneWeekend.com
Related: Is Denver's Condo Market Crashing? · House Didn't Sell? What to Do Next
Sources: ATTOM 2026 Mid-Year U.S. Foreclosure Market Report; Boulder County Public Trustee foreclosure guide; Chicago Title Colorado, "Colorado Foreclosures 2026"; Fannie Mae Selling Guide B3-5.3-07; Freddie Mac Primary Mortgage Market Survey (Oct 8, 2026). This article is general information, not legal, tax or credit advice. Talk to a Colorado attorney, CPA or HUD-approved housing counselor about your situation.
