100 questions homeowners ask, answered with sources

The Notice of Election and Demand (often called a Notice of Default) is recorded by your county Public Trustee and starts the foreclosure. A sale date is set about 110 to 125 days later. You still own the home and still have options until the sale.

Sources: Our guide: Notice of Default in Colorado · Every Colorado Public Trustee

For most homes, the Public Trustee sets the sale 110 to 125 days after the notice is recorded, and sales can be continued to later dates. Nationally, foreclosures took an average of 563 days to complete in mid-2026.

Sources: Our guide: Colorado foreclosure timeline · ATTOM: Mid-Year 2026 foreclosure report

Federal mortgage servicing rules generally prevent a servicer from making the first foreclosure filing until the loan is more than 120 days past due. That window is meant for you to apply for help.

Sources: Our guide: Missed a mortgage payment · CFPB: Housing help

Usually, yes. You can cure (catch up) the default, get a loan modification or other workout, sell the home before the sale, or file bankruptcy with an attorney’s advice. In Colorado you must file a Notice of Intent to Cure at least 15 calendar days before the sale.

Sources: Our guide: Stopping a foreclosure sale · CFPB: What is a mortgage loan modification?

Curing means paying everything that is past due, plus allowed fees and costs, to bring the loan current. In Colorado, the Public Trustee gets a cure statement from the lender, and the money is due by noon the day before the sale.

Sources: Our guide: Stopping a foreclosure sale · Every Colorado Public Trustee

Yes. You own the home until the sale, so you can sell it, pay off the loan at closing and keep the remaining equity. This is often the best way to protect your equity if you can’t keep the home.

Sources: Our guide: Stopping a foreclosure sale · IRS Publication 523: Selling Your Home

Generally no. Under the law in effect since January 1, 2008, Colorado homeowners no longer have a redemption period after the sale; the time to act is before it.

Sources: History of foreclosure in Colorado

Extra money from the sale (an overbid) is held by the Public Trustee and may go to junior lienholders and then to the former owner. Contact your county Public Trustee to ask about overbid funds.

Sources: Every Colorado Public Trustee

A foreclosure generally stays on your credit report for seven years. Selling, modifying or catching up before the sale can avoid it.

Sources: CFPB: Housing help

In some cases a lender can seek a deficiency (the difference between what you owed and what the home sold for), and forgiven debt can have tax effects. Talk to a Colorado attorney about your situation.

Sources: IRS Topic 431: Canceled debt · IRS: Reporting debt forgiven after foreclosure, modification or short sale

Every Colorado county’s Public Trustee posts foreclosure information, including the file number and sale date. We link all 64 counties in one directory.

Sources: Every Colorado Public Trustee

Yes. ATTOM reported 3,943 Colorado properties with foreclosure filings in the first half of 2026, up 57% from a year earlier, though still far below the 2009 peak.

Sources: Colorado foreclosure statistics · ATTOM: Mid-Year 2026 foreclosure report

Call your servicer right away, ask what help is available, and keep notes of every call. A free HUD-approved housing counselor can help you prepare: 1-877-601-4673.

Sources: Our guide: Missed a mortgage payment · HUD: Find a housing counselor

Ask your servicer about forbearance or a repayment plan, apply for unemployment, and talk to a housing counselor. If you have equity, a short-term loan or a planned sale can protect it while you regroup.

Sources: CFPB: What is mortgage forbearance? · HUD: Find a housing counselor

PITI is principal, interest, taxes and insurance. If your income can’t support it long-term, options include a loan modification, lowering taxes or insurance, renting part of the home, refinancing, or selling before you fall far behind.

Sources: CFPB: What is a mortgage loan modification? · Colorado Division of Insurance: Homeowners insurance affordability

Your escrow covers property taxes and insurance, and when those rise, your payment rises. Ask your servicer for an escrow analysis and whether a shortage can be spread over 12 months.

Sources: CFPB: Housing help · Colorado Property Tax Division: Rebates, exemptions and deferrals

Call the Colorado Foreclosure Hotline at 1-877-601-4673 to reach a free HUD-approved counselor, or search HUD’s counselor directory.

Sources: HUD: Find a housing counselor · HUD: Housing counseling

Ask your servicer how partial payments are handled; some hold them in a suspense account until a full payment is received. Get the policy in writing and keep records.

Sources: CFPB: Housing help

A repayment plan lets you catch up by paying your regular payment plus part of the past-due amount each month until you’re current. It works best when the hardship is over.

Sources: Fannie Mae: Options to stay in your home · Freddie Mac: Options to stay in your home

Usually recent pay stubs or income proof, bank statements, tax returns and a hardship letter explaining what happened. Sending a complete application early can trigger more protections.

Sources: CFPB: What is a mortgage loan modification? · HUD: Housing counseling

Sometimes, but check your loan terms, HOA rules and local rental laws, and plan for vacancy and repairs. Rental income has tax rules covered in IRS Publication 527.

Sources: IRS Publication 527: Residential Rental Property

Colorado offers a senior property tax exemption for qualifying owners and a property tax deferral program. A HUD-approved counselor can review other options, including reverse mortgage counseling.

Sources: Colorado Property Tax Division: Senior exemption · Colorado Treasury: Property tax deferral program

The Servicemembers Civil Relief Act can offer protections for servicemembers, including limits on some foreclosures. Talk to your base legal office as early as possible.

Sources: VA home loans · CFPB: Housing help

It can be when you have strong equity and a clear way to repay or refinance. Our private money page explains the 50% loan-to-value rule we use.

Sources: Private money loans

A loan modification is a change to your loan terms, such as a longer term, lower rate or adding past-due amounts to the balance, to make payments affordable. You apply through your servicer.

Sources: CFPB: What is a mortgage loan modification?

Forbearance temporarily pauses or reduces your payments. It does not erase what you owe, so ask how the missed amount will be repaid when it ends.

Sources: CFPB: What is mortgage forbearance?

A payment deferral moves missed payments to the end of the loan, so they are repaid when you sell, refinance or pay off the mortgage. Fannie Mae and Freddie Mac both offer deferral options for eligible borrowers.

Sources: Fannie Mae: Payment deferral · Fannie Mae: Options to stay in your home

Forbearance pauses payments for a while, deferral moves missed payments to the end of the loan, and a modification permanently changes the loan terms. Your servicer decides which you qualify for.

Sources: CFPB: What is mortgage forbearance? · CFPB: What is a mortgage loan modification?

It varies by servicer and how complete your application is. Apply early, send every document requested, and follow up in writing; don’t assume a pending application stops the sale.

Sources: CFPB: What is a mortgage loan modification? · HUD: Find a housing counselor

Missed payments before the modification affect your credit, and how the modification is reported varies. Ask your servicer and a housing counselor how it will appear.

Sources: CFPB: What is a mortgage loan modification?

Ask for the denial reason in writing, check whether you can appeal, and talk to a housing counselor. Other options include a repayment plan, a sale or a short-term private loan.

Sources: HUD: Find a housing counselor · Our guide: Stopping a foreclosure sale

No. Applying is free, and free HUD-approved counselors can help. Be wary of anyone who charges upfront fees to “save” your home.

Sources: FTC: Could that mortgage relief offer be a scam? · HUD: Find a housing counselor

For FHA loans, a partial claim is an interest-free second lien held by HUD that covers missed payments, repaid when you sell, refinance or pay off the loan. Ask your servicer if you qualify.

Sources: HUD: FHA and housing resources

Yes. Fannie Mae, Freddie Mac, FHA and VA offer disaster forbearance and relief options. Contact your servicer as soon as possible after a disaster.

Sources: Fannie Mae: Options to stay in your home · Freddie Mac: Options to stay in your home

Use their free online lookup tools. Knowing who owns your loan tells you which relief programs you may qualify for.

Sources: Fannie Mae loan lookup · Freddie Mac loan look-up tool

Fannie Mae-owned loans may qualify for forbearance, repayment plans, payment deferral and Flex Modification through your servicer.

Sources: Fannie Mae: Options to stay in your home

Freddie Mac-owned loans may qualify for forbearance, repayment plans, payment deferral and modifications through your servicer.

Sources: Freddie Mac: Options to stay in your home

The U.S. Department of Housing and Urban Development oversees FHA loans, approves housing counseling agencies and funds rental assistance programs.

Sources: HUD: Housing counseling · HUD: Helping Americans (rental and housing help)

FHA loans have loss-mitigation options that can include forbearance, partial claims and modifications. Ask your servicer and a HUD-approved counselor.

Sources: HUD: FHA and housing resources · HUD: Find a housing counselor

The VA provides loan servicing help and technicians who can talk with your servicer for you. Contact VA home loans as early as possible.

Sources: VA home loans

A housing counselor from a HUD-approved agency gives free or low-cost advice on foreclosure, budgeting and reverse mortgages. They are neutral and don’t sell you anything.

Sources: HUD: Housing counseling · HUD: Find a housing counselor

A Home Equity Conversion Mortgage (HECM) lets homeowners 62 and older borrow against their equity. Taxes and insurance must still be paid, and counseling is required first.

Sources: HUD: Reverse mortgages for seniors (HECM)

Yes, if property taxes, insurance or other loan terms aren’t met, or when the loan comes due after the last borrower leaves the home. Heirs have options and timelines.

Sources: HUD: Reverse mortgages for seniors (HECM) · CFPB: Mortgage information about a home you inherited

They are government-sponsored enterprises that buy mortgages from lenders, which is why their rules apply to many home loans even though you pay a different company (your servicer).

Sources: Fannie Mae loan lookup · Freddie Mac loan look-up tool

Filing triggers an automatic stay that pauses most collection, including a foreclosure sale. Chapter 13 can let you catch up over three to five years. Talk to a bankruptcy attorney.

Sources: U.S. Courts: Chapter 13 basics · Our guide: Chapter 13 and foreclosure

Chapter 7 is a liquidation that discharges many debts but has no catch-up plan. Chapter 13 is a three-to-five-year repayment plan that can help save a house.

Sources: U.S. Courts: Chapter 7 basics · U.S. Courts: Chapter 13 basics · Our guide: Chapter 7 vs. Chapter 13

A discharge can end your personal liability on many debts, but the lien on the house stays. If payments stop, the lender can still foreclose.

Sources: U.S. Courts: Chapter 7 basics · Our guide: Chapter 7 vs. Chapter 13

Colorado’s homestead exemption is $250,000, or $350,000 if the owner, spouse or dependent is 60 or older or disabled (according to Nolo). Confirm current amounts with an attorney.

Sources: Our guide: Chapter 7 vs. Chapter 13

Chapter 13 generally stays on your credit report for 7 years and Chapter 7 for 10 years from filing.

Sources: Our guide: Chapter 7 vs. Chapter 13

Yes. Individuals generally must complete approved credit counseling within 180 days before filing.

Sources: U.S. Courts: The bankruptcy process

Court fees are $313 for Chapter 13 and $338 for Chapter 7, plus attorney fees. Fees can change, so check with the court.

Sources: Our guide: Chapter 13 and foreclosure · U.S. Courts: The bankruptcy process

It depends on whether you want to keep the home and can afford a plan. Selling before foreclosure can protect equity without a bankruptcy; compare both with an attorney and real numbers.

Sources: Our guide: Chapter 7 vs. Chapter 13 · Our guide: Stopping a foreclosure sale

Secure the home, keep insurance and utilities on, find the will, and contact the mortgage servicer. An estate attorney can explain whether probate is needed.

Sources: Our guide: Inherited a house in Colorado · Colorado Judicial Branch: Open an estate

No. Small estates may be handled with simpler procedures, and assets held in a trust or with a beneficiary designation can pass outside probate. Real estate titled only in the person’s name often needs probate.

Sources: Colorado Judicial Branch: Open an estate · Colorado Judicial Branch: Closing a small estate (JDF 958)

You file with the district court in the county where the person lived. The Colorado Judicial Branch has self-help instructions and forms.

Sources: Colorado Judicial Branch: Open an estate · Colorado Judicial Branch: Self-help resources

It is a simpler way to collect property when an estate is below a limit set by Colorado law. Real estate usually can’t be transferred this way. Check the current rules with the court.

Sources: Colorado Judicial Branch: Closing a small estate (JDF 958)

Usually yes. Federal law generally prevents a lender from calling the loan due when a home passes to a relative at death, and servicers must communicate with confirmed successors.

Sources: CFPB: Mortgage information about a home you inherited · Our guide: Inherited a house in Colorado

Contact the servicer, tell them the borrower died, and ask to be confirmed as a successor in interest. Send the death certificate and proof of your interest.

Sources: CFPB: Mortgage information about a home you inherited

A will directs how property passes and usually goes through probate. A living trust holds property during life and can pass it without probate for assets titled in the trust.

Sources: Colorado Judicial Branch: Open an estate · CFPB: Guides for managing someone else’s money

Colorado allows a beneficiary deed, which names who receives real estate at death without probate. It must be recorded before death. Ask an estate attorney if it fits your situation.

Sources: Colorado Judicial Branch: Self-help resources

Inheriting usually isn’t taxed as income, and the tax basis is generally the home’s value at the date of death. If you sell later, gain is measured from that basis.

Sources: IRS Publication 551: Basis of Assets · IRS Publication 523: Selling Your Home

Colorado’s intestacy law decides who inherits, and the court appoints a personal representative. An estate attorney can guide the family through probate.

Sources: Colorado Judicial Branch: Open an estate

Get a neutral valuation, review buyout options, and consider mediation. If you can’t agree, a court can order a partition, which is slow and costly.

Sources: Colorado Judicial Branch: Self-help resources · Our guide: Inherited a house in Colorado

The loan becomes due. Heirs can typically repay it, sell the home or refinance, and they should contact the servicer quickly about timelines.

Sources: HUD: Reverse mortgages for seniors (HECM) · CFPB: Mortgage information about a home you inherited

The personal representative usually needs court authority (letters) to sell. Once appointed, they can often sell during probate.

Sources: Colorado Judicial Branch: Open an estate

The estate or the heirs usually keep paying to avoid default. Talk to the servicer and the personal representative early.

Sources: CFPB: Mortgage information about a home you inherited · CFPB: Problems with mortgage companies after divorce or death

The court or your settlement decides who keeps it, whether one spouse buys out the other, or whether it is sold. The mortgage is separate: both borrowers stay liable until it is refinanced or paid off.

Sources: Colorado Judicial Branch: Divorce and separation · CFPB: Problems with mortgage companies after divorce or death

Yes, unless the loan is refinanced or the lender releases you. A divorce decree doesn’t remove you from the loan.

Sources: CFPB: Problems with mortgage companies after divorce or death

Run the full PITI plus repairs against one income before deciding. If it doesn’t fit, selling may protect both spouses’ credit and equity.

Sources: CFPB: Housing help · IRS Publication 523: Selling Your Home

Equity is usually divided as part of the property settlement, often through a buyout or a sale. Get a professional valuation first.

Sources: Colorado Judicial Branch: Divorce and separation

The Colorado Judicial Branch has self-help pages and forms for divorce and legal separation.

Sources: Colorado Judicial Branch: Divorce and separation

Missed payments hurt both borrowers. Keep paying or agree on a sale quickly, and tell the servicer if there’s a hardship.

Sources: CFPB: Problems with mortgage companies after divorce or death · Our guide: Missed a mortgage payment

Many homeowners can exclude up to $250,000 of gain ($500,000 for married couples filing jointly) if they owned and lived in the home for two of the last five years.

Sources: IRS Publication 523: Selling Your Home

Canceled debt is generally taxable income unless an exclusion applies. The IRS explains how to report debt forgiven after a foreclosure, short sale or modification.

Sources: IRS Topic 431: Canceled debt · IRS: Reporting debt forgiven after foreclosure, modification or short sale

Shop several companies using the Division of Insurance’s premium comparison reports, raise your deductible if you can afford it, bundle policies, and ask about mitigation discounts.

Sources: Colorado Division of Insurance: Premium comparison reports · Colorado Division of Insurance: Homeowners insurance

Colorado created a FAIR Plan as an insurer of last resort for homeowners who can’t find coverage. The Division of Insurance also has affordability resources.

Sources: Colorado Public Radio: Colorado FAIR Plan launches · Colorado Division of Insurance: Homeowners insurance affordability

Colorado premiums have risen with wildfire, hail and rebuilding costs. The Division of Insurance explains what is driving costs and how to shop.

Sources: Colorado Division of Insurance: Homeowners insurance affordability · Colorado Division of Insurance: Homeowners insurance

Check whether you qualify for the senior or disabled-veteran exemptions, and review your assessed value; you can appeal to your county assessor during the protest period.

Sources: Colorado Property Tax Division: Rebates, exemptions and deferrals · Colorado Property Tax Division: Senior exemption

The state’s property tax deferral program lets qualifying homeowners defer part of their property taxes. Check eligibility with the Colorado Treasury.

Sources: Colorado Treasury: Property tax deferral program

Possibly. Forgiven debt can be taxable unless an exclusion applies, so read the IRS guidance and talk to a tax professional.

Sources: IRS: Reporting debt forgiven after foreclosure, modification or short sale · IRS Topic 431: Canceled debt

Your county assessor’s value, recent comparable sales and a professional appraisal are the best guides. Online estimates can be far off. We give free, no-pressure value reviews.

Sources: FHFA House Price Index datasets · FRED: Case-Shiller Denver Home Price Index

Many owners bought near the 2022 peak, when mortgage rates were very low. Higher rates reduce what buyers can pay, and some Colorado markets have softened since.

Sources: FRED: Case-Shiller Denver Home Price Index · Freddie Mac: Weekly mortgage rates (PMMS)

Higher mortgage rates, more homes for sale and slower job or income growth reduce buyer demand. In July 2026, FHFA reported prices in the Mountain region fell 0.8% for the month, the largest monthly drop of any region.

Sources: FHFA House Price Index, July 2026 · Freddie Mac: Weekly mortgage rates (PMMS)

Slowly. FHFA reported U.S. home prices up 2.6% from July 2025 to July 2026, while the Mountain region was up just 0.6%.

Sources: FHFA House Price Index, July 2026

By the data so far, it is a slowdown, not a 2008-style crash. Prices are still up slightly nationally, and foreclosures are rising but remain far below 2009–2010 levels.

Sources: FHFA House Price Index, July 2026 · Colorado foreclosure statistics

No one can reliably predict it. What you can do is watch the warning signs and keep your own finances flexible.

Sources: Federal Reserve History: The Great Recession · HousingWire: MBA delinquency survey, Q2 2026

Watch rising mortgage delinquencies and foreclosure starts, growing inventory, higher unemployment and falling sales. In 2026, delinquencies and foreclosure inventory have been rising.

Sources: HousingWire: MBA delinquency survey, Q2 2026 · Scotsman Guide: ICE mortgage performance, August 2026

Home prices peaked in mid-2006 and fell about 30% on average by mid-2009, according to the Federal Reserve. Risky subprime lending and falling prices led to record foreclosures.

Sources: Federal Reserve History: The Great Recession · Federal Reserve History: Subprime mortgage crisis

Colorado recorded 46,394 foreclosure filings in 2009, its peak. Today’s filings are rising but are a fraction of that.

Sources: History of foreclosure in Colorado · Colorado foreclosure statistics

Protect cash reserves, avoid selling in a panic if you can afford to wait, don’t take on payments you can’t sustain, and act early if you fall behind; equity disappears fastest in foreclosure.

Sources: CFPB: Housing help · Our guide: Stopping a foreclosure sale

Rents rose sharply in 2021–2022 and have cooled since. In Denver, average apartment rent was $1,764 in Q2 2026, down 5.5% from a year earlier, according to CBRE.

Sources: CBRE: Denver multifamily figures, Q2 2026 · FRED: Rent of primary residence (CPI)

It depends on your rate, taxes, insurance, repairs and how long you’ll stay. Compare HUD’s Fair Market Rents for your area with your full monthly ownership cost.

Sources: HUD: Fair Market Rents · Freddie Mac: Weekly mortgage rates (PMMS)

Freddie Mac publishes average weekly mortgage rates in its Primary Mortgage Market Survey.

Sources: Freddie Mac: Weekly mortgage rates (PMMS)

There’s no right number. Own only what your cash reserves, time and insurance can support through vacancies and repairs, and understand the tax rules for rental income.

Sources: IRS Publication 527: Residential Rental Property

HUD lists rental assistance programs, and Colorado’s housing finance authority (CHFA) and local housing authorities manage many affordable homes and vouchers.

Sources: HUD: Helping Americans (rental and housing help) · HUD: Fair Market Rents

Never pay upfront fees to “save” your home, never sign over your deed under pressure, and get every promise in writing. Report scams to the FTC.

Sources: FTC: Could that mortgage relief offer be a scam?

Colorado offers a property tax exemption for qualifying disabled veterans. Apply through the state’s Property Tax Division.

Sources: Colorado Property Tax Division: Rebates, exemptions and deferrals

Colorado’s LEAP program helps eligible households with winter heating costs, which can free up money for the mortgage. Ask a housing counselor about other local help.

Sources: HUD: Find a housing counselor

The CFPB has free guides for people managing someone else’s money, including powers of attorney and trustees.

Sources: CFPB: Guides for managing someone else’s money

For free counseling, call the Colorado Foreclosure Hotline at 1-877-601-4673. For a local, no-pressure look at your options, call or text Jeff at (559) 393-1310.

Sources: HUD: Find a housing counselor