The first step to recover foreclosures in Colorado is to inform your lender when you can't make your payments on time. Lenders do not want your home because they usually end up losing money in the foreclosure recovery process.

Lenders are therefore motivated to try all options in the Colorado foreclosure recovery process which may include forbearance, partial claim, payment modification and payment suspension. However, you will have more options if you are only a payment or two behind.

There are three key actions to take when seeking Colorado foreclosure help:

1. Answer any correspondence that you receive from your lender. These notices will contain important information on the foreclosure recovery process in Colorado and pending legal action.
2. Raise short-term money to make a missed payment. This may include the sale of a second car or jewelry, or a currently-unemployed household member may be able to get a job.
3. Avoid foreclosure recovery scams. Many companies that claim to be able to stop your foreclosure will charge you for free information. Others may attempt to obtain the title to your house.

Action Steps
The best contacts and resources to help you get it done

Know how Colorado foreclosure laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in Colorado. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: Foreclosurelaw.org offers a summary of Colorado foreclosure laws and a glossary of common foreclosure terminology.

Get assistance with Colorado foreclosure recovery information

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender if needed.

I recommend: DebtAdvice.org is a service provided by the National Foundation for Credit Counseling and allows you to locate housing counselors based on your zip code and search radius. The Homeownership Preservation Foundation offers a hotline that provides free foreclosure prevention counseling by HUD-approved agencies.

Retain one of the many foreclosure attorneys in Colorado

You may need one of the available Colorado foreclosure lawyers to protect your interests, especially if you need to sign documents. If your regular attorney does not handle Colorado foreclosure law, he or she may be able to make a referral.

I recommend: The Rechlitz Law Firm in Englewood primarily practices real estate law for businesses and individuals. M. C. Williams and Associates has an office in Denver and specializes in real estate law.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Speak with a manager when you contact your mortgage company as part of your Colorado home foreclosure recovery. The front-line operator will normally be interested only obtaining your payments that are past due. Ensure you have your loan number, household expenses and recent pay stubs handy and provide a brief, honest account of your financial circumstances. You will also want to get the direct contact information for the manager to whom you are speaking.