Why It Matters
Colorado homeowners are facing mounting financial pressure as pre-foreclosure filings climb across the Front Range, with some counties recording sharp year-over-year increases. Real estate professionals report conversations with clients three to four payments behind on mortgages—discussions that were rare 18 months ago. While the numbers remain well below Great Recession levels, the trend signals growing strain on household budgets amid rising costs and affordability challenges.
El Paso County leads the state with 307 pre-foreclosure properties so far this year, according to market researcher ATTOM. Adams County saw the steepest jump, with filings up 60 percent year-over-year to 283 properties. Statewide, Colorado recorded 1,945 pre-foreclosures during the second quarter, a 12 percent increase from the prior year.
What Happened
Pre-foreclosures begin when lenders file a Notice of Election and Demand, the first step in the foreclosure process. Patrick Muldoon, a real estate agent specializing in bank-owned properties in the Colorado Springs and Pueblo area, said these NED filings have been climbing for more than a year along the Front Range.
Pueblo County saw a 51 percent drop in pre-foreclosures to 167 properties, but actual foreclosures surged 91 percent to 37 in the same period. Denver County saw little change in pre-foreclosures but recorded the highest number of vacant properties held by investors. Colorado’s residential vacancy rate stood at 0.9 percent in the second quarter, below the national average of 1.3 percent.
Calls to Colorado Housing Connects, a nonprofit helpline for homeowners facing foreclosure, jumped 47 percent in the first four months of this year compared to the same period in 2025. The organization recorded 1,739 contacts from January through April, with April marking the highest monthly volume since 2020. About 80 percent of callers are already behind on mortgage payments.
By the Numbers
El Paso County: 307 pre-foreclosure properties, up 4 percent year-over-year. Adams County: 283 pre-foreclosures, up 60 percent. Pueblo County: 167 pre-foreclosures, down 51 percent; 37 actual foreclosures, up 91 percent. Statewide: 1,945 pre-foreclosures in Q2, up 12 percent. Colorado Housing Connects: 1,739 contacts January-April, up 47 percent from prior year.
Zoom Out
Foreclosure activity nationwide remains well below pre-pandemic levels, according to ATTOM CEO Rob Barber. During the height of the Great Recession, Colorado Housing Connects received 3,500 to 4,500 inquiries per month. This year’s busiest month saw just over 450 inquiries. Zombie foreclosures—vacant homes in pre-foreclosure with no occupants—rose nationally by 18 percent year-over-year, though they declined 8 percent from March. Colorado’s zombie foreclosure rate reached 3.8 percent of pre-foreclosure properties in the second quarter, above the national rate of 3.4 percent.
Real estate agents report seeing delinquencies rise not only in housing but also in auto loans and credit card debt. Muldoon said short sales are appearing in subdivisions where they were previously rare, and brokers are fielding more calls from clients in serious arrears.
What’s Next
Real estate professionals anticipate further increases in pre-foreclosure filings as affordability pressures persist. Colorado Housing Connects continues to provide assistance to homeowners through its helpline at 1-844-926-6632, which offers guidance on avoiding foreclosure and navigating default situations. Lenders are working through distressed properties where homeowners face affordability challenges, though the overall volume remains a fraction of what occurred during the 2008 financial crisis.