With millions of homes across the country going into foreclosure, it’s important for both buyers and mortgage holders to understand the process.

So what is a pre-foreclosure in Fort Collins anyway?

Many homeowners across America and Fort Collins are facing difficulties making their monthly mortgage payments. When a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.” Banks and mortgage lenders typically provide three months for the homeowner to become current. Of course this number can vary by bank and situation sometimes. If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming ownership, and evict the homeowner. Thankfully, during this stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to prevent losing their home.

Pre-foreclosure Options for Borrowers

If you’re behind on mortgage payments, you’re likely to receive a “notice of default” from your mortgage lender. This document will state that you have not made mortgage payments for the last 90-180 days. It’s important not to panic. You have options that can delay or even prevent losing your home:

If your mortgage is “above water,” (meaning you have equity in your house) you may be able to refinance your mortgage, receiving lower monthly payments. Check with your local Fort Collins mortgage broker… or contact us and we can connect you with a reputable one.
You may be able to quickly sell your home to a real estate investor that’s reputable in Fort Collins like us at Grail Capital, using the cash acquired to pay the months of back-payments owed (or we *may* be able to work out something with the lender that relieves all or part of your back payments.We can buy your Fort Collins CO area home quickly, often in just a week or two, will pay in cash, and takes the stress out of trying to find a buyer.
You can contact the bank and ask them to permit a short sale. In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off. In some short sales you may still be required to pay the difference to the bank if the house doesn’t sell for what is owed on the loan.
You may be able to declare bankruptcy, which can buy you time to pay your debt. Bankruptcy will remain on your credit report for years, and can cause significant damage.

Lenders are very much aware of the widespread financial troubles across the country and they’re willing to work with borrowers a lot of the time. If you’re honest and communicate with your lender, you’ll often find that there are options that will allow you to remain in your home, or at least salvage your credit rating. A foreclosure can often negatively affect your credit score by 200-400 points and can prevent you from obtaining a loan of any sort for 5-7 years, so be very dutiful if you’ve received a Notice of Default from your lender. But if you’re not able to find a solution with your lender working directly with them… connect with us. We may be able to help.

Ways We Can Help If You’re In Pre-Foreclosure

We can potentially help with a short sale – Submit your info on this website so we can evaluate your situation to see if we can help.
We can buy your Fort Collins area house – We buy houses in Fort Collins and would love to make you an all-cash offer on your house too. Just fill out the form here to get started >>
You can ask us questions and we can provide you FREE guidance and resources so you can make a well educated decision. This costs you nothing, there’s absolutely no pressure, no obligation… just free guidance without a catch.

If you’re in the pre-foreclosure stage… you’ve still got time to fix this situation. Just connect with your bank to see if they’re willing to work with you… or contact us if you’d like to see what we can buy your house for or to tap into our free foreclosure foreclosure resources.

Want To Discuss Your Pre-Foreclosure Options? Call Us at 970-682-3306 Or, Submit Your Info Here To Get A Cash Offer On Your House >>

Facing a Colorado foreclosure timeline? A public trustee sale is typically set 110 to 125 days after the Notice of Election and Demand is recorded, and a sale that pays the loan in full can stop it right up until the auction. See what the timeline actually looks like, or call or text 970-682-3306.

What “pre-foreclosure” means under Colorado law, by statute

The 30-day letter comes first

“Pre-foreclosure” is not a filing. In Colorado it describes the stretch between your default and the moment the county public trustee records the foreclosure.

The first formal step belongs to the servicer. Where the default is solely nonpayment, the holder or servicer must mail the grantor a notice at least 30 days before filing the Notice of Election and Demand, and at least 30 days after the default (C.R.S. 38-38-102.5). That notice has to include the Colorado Foreclosure Hotline number, a contact for loss mitigation, and the up-front-fee warning under C.R.S. 6-1-1107. If a letter like that arrived, you are in pre-foreclosure with roughly a month before anything is recorded.

The NED is the line

Pre-foreclosure ends when the public trustee records the Notice of Election and Demand. The lender’s attorney files the NED and supporting documents with the public trustee for the county the property sits in (C.R.S. 38-38-101(1)), and the trustee reviews and records it within 10 business days (C.R.S. 38-38-102(1)). From that recording, every later deadline runs.

Once it is recorded, the sale date is set no less than 110 and no more than 125 calendar days out for non-agricultural property (C.R.S. 38-38-108(1)(a)). Agricultural property runs 215 to 230 calendar days.

The notices you should receive after the NED

A combined notice of the sale, your right to cure and the right to redeem, mailed no more than 20 calendar days after the NED is recorded (C.R.S. 38-38-103(1)(a)), and mailed again 45 to 60 calendar days before the first scheduled sale (38-38-103(1)(b)).
Publication of the sale beginning 45 to 60 calendar days before the first scheduled sale date, once a week for five consecutive weeks (C.R.S. 38-38-103(5)).
A Rule 120 hearing notice posted on the house at least 14 days before the hearing, for residential property (C.R.S. 38-38-105(3)(a)). The lender must obtain a court order authorizing sale under C.R.C.P. Rule 120 before the trustee can sell, and a sale without a compliant order is invalid (38-38-105(2)(a)).

Why pre-foreclosure is the cheapest place to act

Your options narrow on a schedule rather than gradually:

Before the NED: you can reinstate privately, refinance, list conventionally, or sell. Nothing is recorded against the property and nothing is published in the newspaper.
After the NED, more than 15 calendar days before the sale: the statutory cure right is still live. The notice of intent to cure must be on file with the trustee at least 15 calendar days before the sale (C.R.S. 38-38-104(1)), and the cure funds are due by 12 noon the day before (38-38-104(2)(b)).
Inside 15 days: the statutory cure right is gone. A payoff still works, but only if the lender files a written withdrawal of the NED with the trustee before the sale (C.R.S. 38-38-109(3)(a)), which is now discretionary on its part.
After the sale: nothing. Colorado eliminated the owner’s post-sale redemption right for foreclosures under the law in effect on and after January 1, 2008; C.R.S. 38-38-302 runs to lienors only.

Does pre-foreclosure show up on your record?

The NED is a recorded document, so it is public from the day the trustee records it, and the sale is published in a newspaper for five consecutive weeks. That is where the mail and the knocks on the door come from. Everything before the NED is between you and your servicer. It is the single best reason not to wait.

Statutes cited above are current through the 2026 Colorado legislative session. Figures that move on a schedule should be confirmed for your year. This is general information about Colorado law, not legal advice — have a Colorado attorney or title professional review anything you intend to rely on.

Related guides

We buy houses from owners facing foreclosure across the Front Range, including Brighton, Commerce City and Thornton. See every Colorado city we buy in.

Written by Luke Angerhofer, founder of Grail Capital and an active Colorado employing real estate broker (licence ER 100018905, issued 2007). Luke began his career as a licensed Colorado real estate appraiser and has been buying houses directly from Front Range homeowners since founding Grail Capital in 2016. Grail Capital buys across Northern Colorado and the Denver metro. This article is general information about Colorado real estate and is not legal, tax or financial advice. More about Luke and Grail Capital.

What is a Pre-Foreclosure in Fort Collins?