Colorado homeowner guide

A Short History of Foreclosure in Colorado and the U.S.

By Jeff Phillips, Vindicator Solutions · Updated October 2026

Colorado handles foreclosures differently from most states. A neutral county official, the Public Trustee, runs the process, and that system grew out of an economic crash more than 130 years ago. Here’s how we got here.

1894: Colorado creates the Public Trustee

The Panic of 1893 hit Colorado hard. Silver prices collapsed, the federal Silver Purchase Act was repealed, and mining towns lost their jobs. At the time, deeds of trust named private trustees, often agents of the lender. They could sell a borrower’s home quickly, with no right to redeem it, and speculators bought distressed property cheaply.

In 1894 the legislature created a Public Trustee in every county: a neutral public official, rather than the lender’s agent, to hold deeds of trust and run foreclosure sales. That is still how most Colorado foreclosures work today. Find your county’s Public Trustee →

1930s: the Great Depression

Mortgage defaults soared during the Depression. The federal Home Owners’ Loan Corporation (HOLC) made loans from 1933 to 1936 and refinanced about one million delinquent mortgages, keeping many families in their homes. It remains one of the largest federal foreclosure-relief efforts in U.S. history.

2006–2010: the housing crash

2006: Colorado launched its Foreclosure Hotline, which connects homeowners with free HUD-approved counselors. It’s still running today: 1-877-601-4673. Colorado also passed the Colorado Foreclosure Protection Act, which sets rules for anyone who buys or helps with a home in foreclosure.
2006–2009: Colorado foreclosure filings climbed from 28,435 in 2006 to 39,920 in 2007, 39,333 in 2008 and a peak of 46,394 in 2009. In 2009, Arapahoe (6,233), Denver (6,141), Adams (5,647) and El Paso (5,470) counties had the most filings.
January 1, 2008: Colorado changed its foreclosure law. Homeowners no longer have a right to redeem the home after the sale. Instead, they get a longer window before the sale to cure the default. Today only certain junior lienholders can redeem after a sale.
2010: Nationwide, a record 2.9 million properties, about 1 in 45 homes, received a foreclosure filing.

2014: a 120-day federal waiting period

Federal mortgage servicing rules from the Consumer Financial Protection Bureau took effect in 2014. They generally bar a servicer from making the first foreclosure filing until a loan is more than 120 days past due, which gives homeowners time to apply for help.

2020–2021: pandemic protections

The CARES Act let homeowners with federally backed mortgages pause payments through forbearance. About 3.4 million mortgages, roughly 7%, were in forbearance at the May 2020 peak. A federal foreclosure moratorium on federally backed loans ended on July 31, 2021. In Colorado, the federally funded Emergency Mortgage Assistance Program later provided $163.6 million to about 10,100 households before it ended.

2024–2026: foreclosures rise again

With pandemic help gone and costs for taxes, insurance and everyday living higher, foreclosures have climbed. Colorado foreclosure filings in the first half of 2026 were up 57% from a year earlier, the second-largest increase of any state with at least 500 filings, though still far below 2009. See the latest numbers →

What hasn’t changed

For more than a century, the Colorado system has given homeowners a public process, notice and time. Time is the most valuable thing you have, because it is what lets you catch up, refinance or sell on your terms. If you have a notice, here’s what it means.

Sources

Common questions

Why does Colorado use a Public Trustee for foreclosures?

Colorado created the Public Trustee in 1894, after the Panic of 1893, so that a neutral county official rather than a lender’s agent would hold deeds of trust and run foreclosure sales.

Can I buy my house back after a Colorado foreclosure sale?

Generally no. For foreclosures under the law in effect since January 1, 2008, homeowners no longer have a redemption period after the sale. Instead they have more time before the sale to cure the default. Only certain junior lienholders can redeem after the sale.

When were Colorado foreclosures at their highest?

The Colorado Division of Housing counted 46,394 foreclosure filings statewide in 2009, the peak of the last housing crisis.

This guide is general information, not legal, tax or financial advice. Foreclosure dates and rules can change — confirm your situation with your county Public Trustee, a HUD-approved counselor (1-877-601-4673), or a Colorado attorney.