Behind on Your Mortgage in Colorado?

If you're reading this, something hard is happening. Maybe a job loss, medical bill, divorce, or just a mortgage that stopped fitting your life. The first thing to know: you are not out of options yet, and you are not alone — thousands of Colorado homeowners work through this every year. The second thing: predatory operators target people in this exact situation, so be careful who you talk to.

This guide explains how Colorado foreclosure actually works, the five paths you can take before a public trustee sale, and what to avoid. It is written by a Colorado real estate company that buys houses directly from homeowners — we have skin in this game, but we'd rather you know your options than make a rushed decision.

Colorado's foreclosure timeline

Colorado uses a Public Trustee foreclosure process. It's faster than judicial foreclosure but slower than the "auction tomorrow" panic that some letters imply. The full process is governed by Colorado Revised Statutes § 38-38-101 et seq.

From the first missed payment to a public trustee sale typically runs 110 to 150 days. Here's the rough sequence:

The big takeaway: the earlier in this timeline you act, the more options you have. Once the NED is recorded, certain choices (like a clean private sale that doesn't show on a credit report as foreclosure) get harder.

Five options before foreclosure

1. Loan modification

Your lender re-negotiates the terms of your existing loan — rate, term, missed-payment forbearance baked into principal — to make it affordable. Federal CARES Act protections expired in 2023, but most major servicers still offer modifications. The HUD-approved housing counselor directory lists Colorado-based counselors who can walk you through a modification application for free. Don't pay anyone for this service — HUD counselors do it at no cost.

2. Forbearance

The lender agrees to pause or reduce payments for a defined period, with the missed amount repaid later (added to the end of the loan, paid in a lump sum, or absorbed into a modification). Get the agreement in writing. Verbal forbearance promises don't survive a servicer-employee turnover.

3. Short sale

You sell the property for less than the loan balance, and the lender agrees to accept the proceeds and (often) write off the difference. This is the right path when the property is underwater — you owe more than it's worth. Short sales take longer than regular sales (typically 60–120 days for lender review and approval), so start early. There can be tax implications if the lender forgives debt; consult a Colorado tax professional.

4. Sell to a cash buyer before NED is recorded

If you have equity in the property — the home is worth more than what you owe — selling for cash is often the cleanest path. A direct cash buyer like EZ Investments can close in 2 to 3 weeks at a Colorado title company, with no repairs, no commissions, and no financing contingencies. The title company pays off the mortgage at closing, and you walk away with the rest. If the sale closes before the lender records the NED, the foreclosure never enters the public record.

5. Deed in lieu of foreclosure

You voluntarily transfer the deed back to the lender, and they cancel the loan. This avoids the formal foreclosure process and may be less damaging to your credit than a completed foreclosure. Lenders only accept deeds in lieu when there are no junior liens (no second mortgage, HELOC, or judgment liens), so it's not always available.

What EZ Investments does for distressed sellers

We work with homeowners who are behind on payments and want to sell before things escalate. The process:

1. You tell us about the property and your situation. We respond within 24 hours. There is no charge for this conversation.
2. We make a direct cash offer. If you have equity, you keep the difference between sale price and what you owe.
3. If the property is underwater (short sale), we submit our offer to your lender for approval. You work with a HUD counselor or Colorado attorney to manage the lender side; we handle the buyer-side paperwork.
4. We close at First Integrity Title. The mortgage is paid off at closing, you sign the deed, and the foreclosure process stops.

We've worked with sellers who were 30 days out from a public trustee sale. We've also worked with people who simply saw it coming and wanted to step ahead of it. The earlier we talk, the more we can do.

What NOT to do

• Don't ignore mail from the lender. Open everything. The cure-period letter is the one that buys you the most time.
• Don't pay anyone for loan-modification help. HUD-approved counselors do it for free. Anyone charging up-front fees for "foreclosure rescue" is at minimum a bad deal and at worst a scam — the Colorado Attorney General has prosecuted these.
• Don't sign a deed transferring ownership without a Colorado attorney reviewing it. Once the deed is signed and recorded, the property is gone.
• Don't trust verbal promises from anyone — lender, buyer, or anyone else. Get every agreement in writing.
• Don't wait until the week before the sale to act. Most options take time. The earlier you start, the more you can do.

Where to get free help

Frequently asked questions

Related reading

• Inherited a House in Colorado? A Seller's Guide
• How EZ Investments works for sellers
• About EZ Investments