Facing Foreclosure in Pueblo County? Here’s What You Can Do to Protect Your Home

Few things in life feel as overwhelming as the possibility of losing your home. If you're struggling to make mortgage payments and worried about foreclosure in Pueblo County, you're not alone. Life can throw unexpected financial hardships your way—job loss, medical bills, divorce, or other setbacks can make it hard to keep up. But foreclosure doesn’t have to be inevitable. You have options, and the sooner you take action, the better your chances of keeping your home or minimizing the long-term impact on your financial future.

At Team Gary Miller The Success Team with RE/MAX of Pueblo, Inc., we’ve worked with many homeowners who found themselves in tough situations. Whether you're looking to prevent foreclosure or need guidance on your next steps, we’re here to help. Here’s what you need to know.

Understanding Foreclosure in Pueblo County

Foreclosure is a legal process in which a lender takes ownership of a property when the homeowner fails to make mortgage payments. In Colorado, the foreclosure process typically goes through the Public Trustee’s Office and follows a structured timeline. Here’s a brief overview of how it works:

1. Missed Payments – Most lenders allow a grace period, but once you’re behind by 90 days or more, they may begin foreclosure proceedings.

2. Notice of Election and Demand (NED) – The lender files this document with the Pueblo County Public Trustee, officially starting the foreclosure process.

3. Cure Period – Homeowners have up to 110-125 days to “cure” the default by paying overdue amounts and fees.

4. Foreclosure Sale – If the loan isn’t reinstated, the property is auctioned at a public sale.

5. Eviction – If the property sells at auction, the new owner may initiate eviction proceedings.

The good news? You have multiple options to stop foreclosure before it reaches the auction stage.

Steps to Avoid Foreclosure

1. Communicate with Your Lender Immediately

Ignoring the problem won’t make it go away. Contact your lender as soon as you realize you may miss a payment. Many banks offer hardship programs, loan modifications, or repayment plans to help homeowners get back on track.

2. Understand Your Loan Options

If your financial troubles are temporary, you may qualify for one of these options:

• Forbearance – Your lender temporarily reduces or suspends payments.

• Loan Modification – Adjusts your loan terms to make payments more affordable.

• Repayment Plan – Allows you to pay overdue amounts in installments.

3. Seek Help from a HUD-Approved Housing Counselor

Free counseling services are available through the U.S. Department of Housing and Urban Development (HUD). A housing counselor can review your options and help negotiate with your lender. Visit HUD’s website or call (800) 569-4287 for assistance.

4. Refinance or Rework Your Mortgage

If you still have decent credit, refinancing could lower your interest rate and reduce payments. You may also be able to switch to a longer loan term to decrease monthly costs.

5. Sell Your Home Before Foreclosure Happens

One of the best ways to avoid foreclosure is to sell your home before reaching that stage. The housing market is still strong compared to what many homeowners originally paid for their properties, meaning you may have enough equity to sell at a profit or at least cover your mortgage balance.

A regular sale allows you to pay off your loan, avoid foreclosure's negative impact on your credit, and possibly even walk away with some financial cushion. The key is acting quickly—waiting too long can limit your options. At Team Gary Miller The Success Team with RE/MAX of Pueblo, Inc., we can help you determine your home’s market value and develop a pricing strategy to sell efficiently.

6. Consider a Short Sale If You Can't Afford to Stay

If keeping the home isn’t an option and selling traditionally won’t cover your mortgage balance, a short sale might be a better alternative to foreclosure. A short sale allows you to sell your home for less than the amount owed, with lender approval. This helps protect your credit compared to a full foreclosure.

As experienced Pueblo County real estate professionals, we at Team Gary Miller The Success Team with RE/MAX of Pueblo, Inc. can guide you through the short sale process, market your home effectively, and negotiate with lenders to get the best outcome.

7. Explore Colorado’s Foreclosure Assistance Programs

Colorado offers resources to help struggling homeowners. The Colorado Housing Connects program (1-844-926-6632) provides foreclosure prevention assistance, while the Emergency Mortgage Assistance Program (EMAP) may help qualified homeowners with past-due payments.

How Foreclosure Affects Your Future

If foreclosure occurs, it can impact your financial future in significant ways:

• Credit Score Damage – Foreclosure can lower your credit score by 100-200 points, making it harder to get loans, rent housing, or even secure certain jobs.

• Deficiency Judgments – In some cases, lenders may pursue a judgment for any unpaid mortgage balance.

• Difficulty Buying a Home Again – Many lenders require a waiting period of at least 3-7 years before approving a new mortgage after foreclosure.

Taking proactive steps now can help you avoid these long-term consequences.

You’re Not Alone—We’re Here to Help

Navigating foreclosure is stressful, but you don’t have to do it alone. Whether you need guidance on loan modifications, short sales, or selling your home before foreclosure, Team Gary Miller The Success Team with RE/MAX of Pueblo, Inc. is ready to assist you. We have extensive experience working with homeowners in Pueblo County and can provide personalized strategies to help you make the best possible decision for your situation.

If you’re facing foreclosure, reach out today. A conversation could be the first step toward a solution that works for you.

📞 Call us at 719-586-8701 or email us [email protected] to learn more about how we can help.