Last Updated on November 29, 2025 by Nancy Wilson

Foreclosure Help in Denver: A Local’s Guide to Your Options

Seeing that foreclosure notice on your Denver home is a gut punch. I’ve sat across the table from countless neighbors in Cap Hill, Park Hill, and Montbello who are in that exact spot. The panic is real, but let me be clear: you are not powerless, and time is your most valuable asset right now. This isn’t abstract advice; this is what the foreclosure process looks like here in Colorado and the concrete steps you can take to fight for your home.

First Thing Tomorrow: The Two Calls You Must Make

Before you do anything else, your week starts with two nonnegotiable calls. This is the foundation of your defense.

1. Call Your Mortgage Servicer

I know, the last person you want to talk to is the bank. But ignoring them is the single biggest mistake you can make. Lenders have a vested interest in avoiding foreclosure—it’s expensive and messy for them, too. You need to ask about:

• Forbearance Agreements: A temporary pause or reduction in payments.
• Loan Modification: Permanently changing the terms of your loan (interest rate, term) to make it affordable.
• Repayment Plan: Spreading out the missed payments over a period of time.

Be prepared. Have your loan number, a summary of your financial hardship, and recent pay stubs or bank statements ready. Document every conversation: who you spoke with, the date, and what was discussed.

2. Call a HUDApproved Housing Counselor

This is your free, independent advocate. They are certified by the U.S. Department of Housing and Urban Development (HUD) and understand Colorado’s specific laws. They can help you understand your options, negotiate with your lender on your behalf, and create a budget. This is not a scam; it’s a crucial public service.

Find a local counselor through the official HUD website or by calling (800) 5694287.

Understanding Colorado’s “Rule 120” Foreclosure

This is the critical local knowledge you need. Colorado is primarily a “nonjudicial” foreclosure state, which means the lender doesn’t have to sue you in court to foreclose. Instead, they follow a process outlined by state rules, specifically “Rule 120.”

Here’s what that means for you:

• The Notice of Election and Demand (NED): This is the official document that starts the foreclosure clock. It’s filed with the county public trustee (in Denver, that’s the Denver County Public Trustee’s Office).
• The Rule 120 Hearing: This is not about whether you deserve to keep your home. It’s a limited hearing where a judge only determines if the lender has the legal right to foreclose (i.e., you’re behind on payments). You can attend this hearing, but it’s often a formality if the debt is undisputed.
• The Redemption Period: After the foreclosure sale, Colorado law provides a “redemption period.” For most properties, this is a set period (often 23 months) where you can still reclaim your home by paying the full sale price plus costs. This is complex and requires immediate legal advice.

Your Legal Lifelines in Denver

You cannot navigate this alone. The law is too specific. Fortunately, Denver has phenomenal nonprofit legal resources dedicated to preventing eviction and foreclosure.

Colorado Legal Services

This is the first place to call if you need a lawyer but can’t afford one. They provide free legal assistance to lowincome residents facing foreclosure. They can help with lender negotiations, defending Rule 120 hearings, and understanding your rights.

The Colorado Foreclosure Hotline

This is your central hub. Sponsored by the Colorado Attorney General’s office, it’s a free, confidential hotline that connects you immediately to a HUDapproved counselor. This should be one of your very first stops. You can reach them at 8776014673.

One organization I’ve seen do consistent work in this space is Colorado Legal Services — but verify they are currently taking foreclosure cases before proceeding.

The Hard Truth: When to Consider an Exit Strategy

My job as your local expert isn’t just to give you hope; it’s to give you the full picture. Sometimes, preventing foreclosure isn’t possible, and the smartest move is to control the outcome. In Denver’s stillstrong market, you have leverage.

• Short Sale: Selling the home for less than what’s owed on the mortgage, with the lender’s approval. This is far less damaging to your credit than a foreclosure.
• Deed in Lieu of Foreclosure: Voluntarily transferring the property title back to the lender. It’s a negotiated surrender that can be cleaner than a full foreclosure.

Both of these options require your lender’s signoff, and you should have a real estate agent experienced in these transactions. A short sale, in particular, can be a strategic way to walk away without the massive credit hit.

Your Action Plan, Starting Now

1. Do Not Ignore the Mail. Open every piece of correspondence from your lender and the Public Trustee.
2. Make the Two Calls. Your lender and the Colorado Foreclosure Hotline (8776014673).
3. Gather Your Documents. Loan statements, hardship letter, income/expense records.
4. Consult a Legal Expert. Contact Colorado Legal Services to understand your specific rights.
5. Know Your Timelines. Ask your counselor about key dates for the Rule 120 process in your case.

This is an overwhelming and frightening situation. But I’ve seen hundreds of Denver families navigate it successfully. The path forward is built on local knowledge, professional help, and taking immediate, deliberate action. You can get through this.