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How to Stop Foreclosure in Colorado – Quick Strategies For 2024

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how to stop foreclosure in Colorado

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Receiving a notice in the mail from your mortgage lender informing you they’re taking foreclosure action against you is devastating. You can learn how to stop foreclosure in Colorado, and doing so could help you to remain in your home. However, before you make that decision, consider all of your options and then determine which strategy provides you with the best possible outcome.

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Understanding Foreclosure in Colorado

Foreclosure is the legal process a mortgage lien holder can take on a property owner who fails to meet their financial obligations in making on-time payments towards their debt. A mortgage is a legally binding contract that provides the lender with legal rights to seek foreclosure, and as you learn more about how to stop foreclosure in Colorado, it’s essential to know you have rights, too.

Most of the time, mortgage lenders and servicers, the organizations that collect your payment, must give borrowers time and opportunities to mitigate the losses. Foreclosure laws in Colorado make it clear that a person must make payment, including fees, as outlined in the contract, but servicers must abide by the rules to move through this process.

To stop foreclosure in Colorado, consider the opportunities in each of the foreclosure steps that could offer some protections for you.

Also note that, after the foreclosure crisis in 2010, all borrowers sign a promissory note and mortgage, which gives them specific legal rights. Among those rights are:

  • You must receive a PR foreclosure notice
  • You must be given the ability to apply for loss mitigation
  • You have the right to make payment to become current on the loan to stop the sale of the property
  • You have the right to pay off the loan to prevent a foreclosure sale
  • You have the right to stop foreclosure in Colorado through bankruptcy

To stop foreclosure in Colorado, consider the timeline and opportunities you have throughout it:

  • Borrower defaults on the loan: At this point, your payment is 30 days late
  • Pre-foreclosure period begins and continues for 120 or more days
  • Within this pre-foreclosure period, you are likely to receive letters from the legal team representing the attorney and a formal Notice of Default (30 days prior)
  • Foreclosure begins with the Notice of Election & Demand letter being filed
  • The foreclosure process lasts from 110 to 125 days
  • Letters from the public trustee are sent to you
  • The Rule 120 hearing takes place
  • Borrow files Intent to Cure (if you plan to resolve the foreclosure action
  • The property is sold at a foreclosure sale
  • Eviction begins

These are the rules laid out by Boulder County, Colorado. Other counties will have similar processes, but details may be slightly different.  

How to Stop Foreclosure in Colorado: Use These Strategies to Prevent Foreclosure

A borrower can stop foreclosure in Colorado by taking specific steps. Most of the time, that includes making payment of all debts owed – the amount you are behind on the payment as well as the amount of fees related to those late or missed payments.

Loan modification and refinancing to stop foreclosure

Loan modification is not a guarantee, as lenders are not obligated to offer it. However, loan modification is one route to stopping foreclosure. This could include:

  • Extending the loan term to help make catch-up payments
  • Reducing the interest rate on the loan
  • Deferring some of the principal (amount owed) until the end of the loan

Modification, if the lender agrees and you can come to a compromise, could bring your loan current and help you avoid further foreclosure action.

Refinancing to avoid foreclosure in Colorado

If you have stable income and employment, you may be able to refinance your existing mortgage loan with a new lender. This may be an option if you can secure a lower interest rate or your credit is high enough to qualify for a new loan. Refinancing into a longer term can also help because it lowers your monthly payment.

The difficulty with refinancing is qualifying for a new loan. Your home must be worth at least what you owe in total. Some lenders will only refinance up to a certain dollar amount.

Forbearance agreement

Mortgage forbearance can help those struggling to pay their mortgage to stop foreclosure in Colorado for a short period of time. During this time, the servicer of your loan agrees to pause your current payment or allows you to make substantially lower payments.

Forbearance does not discharge or reduce your debt. You still owe the amount you are behind. Moreover, the lender may charge interest on the amount you are behind as well. You may wish to approach your lender to show that you are behind on your mortgage but that this is a temporary solution, perhaps due to:

  • A home damaged by a natural disaster
  • Unexpected, significant medical costs
  • Employment loss

Lenders and servicers are not required to accept these terms. Many will require that you prove that you still have the means to make payment.

Repayment plan

It may be possible to work out a deal with your mortgage servicer to get caught up on the missing payments over time. For example, if you are behind by $5,000, you may agree to make payments on time going forward for the full amount you owe, with an extra $500 per month until you are caught up.

The servicer, depending on your credit history, income, and history with them, may agree to this, with fees and interest applied. If you want to stay in your home and stop foreclosure in Colorado using this method, you’ll need to get a detailed agreement in place with the lender outlining the terms. Be sure you work with an attorney to ensure the agreement is legally binding.


Another right that you have as a mortgage holder is to stop foreclosure in Colorado immediately by filing bankruptcy. Let’s be very clear here. Bankruptcy does not automatically save your home. It does create a freeze on all legal actions taken against you until the court can decide on them.

If you were to file Chapter 7 bankruptcy, your debts would be discharged, but because you are behind on your mortgage, you could still lose your home. The temporary freeze could buy you some time to try to work out a deal with the lender to get caught up.

If you were to file Chapter 13 bankruptcy, your home is immediately protected. However, you would work with the bankruptcy trustee (from the court) to develop a repayment plan. In Chapter 13, you continue to make payments, but the bankruptcy trustee works with your lender to find a way to make payments more affordable, if possible. Then, you spend 3 to 5 years paying the bankruptcy trustee, who will then make payments to your lender on your behalf. If you don’t have income or you cannot afford the payment, you may still need to move forward with foreclosure or lose the home in bankruptcy itself.

The benefit of Chapter 13 is that it enables the bankruptcy trustee to work with you to restructure your debt, which will stop foreclosure in Colorado until an agreement is determined. Keep in mind that it is not always wise to continue to maintain this debt, especially if you are unable to continue to make payments on it.

Short sale

A short sale requires that a homeowner sell the home for less than what is owed with the mortgage servicer’s approval. It’s up to you to find a buyer for the home. The lender must agree to accept less than what you owe.

Often, mortgage companies are willing to do this because it saves them the cost and frustration of the foreclosure process (foreclosure is an expensive legal battle for lenders). Any money received from the short sale of the home is paid to the lender. A short sale can still hurt your credit score, but it can help you stop foreclosure in Colorado.

Deed in Lieu of foreclosure

Another route to consider is a deed in lieu of foreclosure. In short, you are handing the deed (ownership) of the property to the lender in exchange for the mortgage lender to discharge or release you from the mortgage loan.

In this method, the lender cannot foreclose on the property. They now own the property and, as such, sell it to recoup their investment in the property.

Legal Actions and Challenges

Foreclosure is a legal action, one that requires numerous steps and procedures. In some situations, you may be able to challenge the foreclosure action the lender or servicer is taking if that provider does not follow the necessary procedures and specific steps required.

For example, once you learn how to stop foreclosure in Colorado, you may notice that the lender failed to provide you with the necessary legal notification of their intent to foreclosure. If they failed to do so, you may challenge their right to seek foreclosure against you.

If you suspect that there is any potential for wrongdoing like this, or you want to exhaust any opportunity that exists, turn to a real estate or foreclosure attorney. Discuss your case with an attorney openly and honestly. Let the attorney determine if the lender or servicer violated Colorado foreclosure rights and, if so, pursue legal action to terminate the foreclosure actions against you.

Counseling and Mediation Solutions

If you cannot stop foreclosure in Colorado using any of the above-listed methods, you may wish to seek out counseling and meditation. Requesting a professional mediator or counselor to step in could help encourage the mortgage company to work with you a bit more closely.

Counselors and negotiators like this can help to negotiate with lenders to try to find a solution that both parties can agree to move forward. If you want to stop foreclosure desperately and you are confident you can continue to make payments, it’s worth paying for these services.

Selling Your Home

Let’s be quite frank here. Ask yourself this question:

If you were to be able to stay in your home and avoid foreclosure, would you be financially healthy, or would you likely face financial complications in a few months?

In situations where you are not likely to be able to continue to afford to make payments on your home, consider selling your home. This is the best way to stop foreclosure in Colorado without dealing with a negative impact on your credit score. You may even walk away with some money in your pocket, depending on the value of your home. Traditional selling like this is the ideal scenario.

However, some people may find that they cannot sell their home fast enough or for enough on the open market. They may struggle to find a buyer. This is where a fast-cash offer to buy your house could work well for you. An investor offers you the money necessary to pay off your lender, you avoid foreclosure, and the lender gets what they need to settle the debt.

Highlight the importance of consulting with a foreclosure attorney or housing counselor for personalized advice and potential legal defenses against foreclosure.

This is where iBuyer can help you in just 3 steps:

1: Submit your information to us now, including your home address. Answer four basic questions about your home. There is no obligation to move forward at this point. Our Home Value Estimator provides you with a clear estimate of how much you can receive.

2: Receive your options. These are solutions to your current financial situation. You’ll learn how much investors can offer to you. Take the time to compare them.

3: You decide to sell. If you decide to move forward, you pay nothing to the investor at iBuyer, but you do get paid for your home. You can then receive cash quickly for your home so you can stop foreclosure in Colorado immediately.

Keep the Following in Mind

Now that you have learned how to stop foreclosure in Colorado, it’s up to you to make a decision. Don’t wait. The longer you do, the fewer options are available to you. Instead, consult with a professional here at iBuyer or a real estate attorney to learn what legal steps you can take right now to get out from under the financial complications you are facing and prevent foreclosure.

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