I Can’t Make My Mortgage Payment – What Happens Now?

Missing your mortgage payment feels like the world is crashing down. Your stomach drops every time you see that bill in the mail, and you’re probably lying awake at night wondering if you’re about to lose your Denver home.

Take a breath. You’re not alone, and you have more time and options than you think.

The Real Timeline: You’re Not Losing Your House Tomorrow

Here’s what actually happens when you miss mortgage payments in Colorado – not the scary version the banks want you to believe:

Month 1-2: Late Fees and Phone Calls You’ll get late fees (usually $50-100) and some calls from your lender. Your house is completely safe right now.

Month 3-4: More Serious Letters Expect certified mail and “pre-foreclosure” notices. Still no immediate danger to your home ownership.

Month 4-6: Notice of Default Filed This is when things get real. The lender files paperwork with Jefferson County, Boulder County, or wherever your Front Range home is located. You typically have 110-125 days from this point before any auction.

Month 8-10: Notice of Sale The foreclosure auction gets scheduled. This is your final warning.

The key point? You have roughly 8-10 months from your first missed payment before you could actually lose your Denver area home.

What’s Really Happening Behind the Scenes

Your lender doesn’t want your house. Banks hate foreclosures because they lose money on every single one. A typical foreclosure costs them $50,000-80,000 in legal fees, maintenance, and selling costs.

They’d much rather work with you or have someone else buy your Lakewood, Littleton, or Highlands Ranch home before it gets to auction.

Your Options Right Now (Before Panic Sets In)

Option 1: Contact Your Lender Immediately

Call the number on your mortgage statement and ask about:

• Loan modification (lower payment or interest rate)
• Forbearance (temporary payment pause)
• Repayment plan (catch up gradually)

Don’t be embarrassed. Lenders have entire departments for this because it happens constantly, especially in expensive markets like Denver.

Option 2: Sell Your House Traditionally

If you have equity and time (3-6 months), listing with a realtor might get you the highest price. But this only works if:

• Your house doesn’t need major repairs
• You can wait 60-120 days for a buyer
• You can afford to keep making payments while it’s listed

Option 3: Sell to a Cash Buyer

This is often the fastest solution for Front Range homeowners. Cash buyers can:

• Close in 7-14 days
• Buy your house as-is (no repairs needed)
• Stop foreclosure immediately
• Handle all paperwork and closing costs

Yes, you’ll get less money than a perfect traditional sale, but you’ll avoid foreclosure damage to your credit and get out from under payments you can’t afford.

Real Examples from Denver Area Homeowners

Sarah in Englewood: Lost her job at Denver International Airport during COVID. Three months behind on her $2,400 mortgage payment. Sold to a cash buyer in 12 days, walked away with $23,000, avoided foreclosure completely.

Mike in Castle Rock: Divorce left him with a house payment he couldn’t handle alone. Rather than fight it out in court for months, sold for cash in two weeks. Used the money to get an apartment and start over.

The Johnson Family in Lakewood: Medical bills from their son’s cancer treatment made the mortgage impossible. Sold their 1960s ranch house as-is to an investor, moved to a smaller rental, kept their credit intact.

What About Short Sales?

A short sale means selling your house for less than you owe on the mortgage, with the bank’s permission. In Colorado, this can work if:

• You owe more than the house is worth
• You can prove financial hardship
• You have 3-4 months for the process

The bank forgives the remaining debt, and you avoid foreclosure. But short sales are complicated and take longer than cash sales.

Red Flags: Avoid These Common Scams

When you’re desperate, scammers come out of the woodwork. Never work with anyone who:

• Asks for upfront fees before helping
• Tells you to stop talking to your lender
• Wants you to sign over your deed immediately
• Promises to “stop foreclosure guaranteed” without reviewing your situation
• Has no local Colorado address or references

Colorado-Specific Protections

Colorado law gives you some protection:

• You have the right to “cure” (catch up on payments) up until 12:00 PM the day before foreclosure auction
• You get a 10-day “right of redemption” after foreclosure to buy back your property
• The lender must follow strict notice requirements

But don’t count on these last-minute options. It’s better to act early.

Your Action Plan Starting Today

This Week:

1. Call your lender and ask about workout options
2. Get quotes from 2-3 legitimate cash buyers
3. Talk to a HUD-approved housing counselor (free service)

Next Week: 4. Compare your options: loan modification vs. traditional sale vs. cash sale 5. Make a decision based on your timeline and financial needs

This Month: 6. Execute your chosen plan 7. Get everything in writing 8. Use a legitimate title company for any sale

The Bottom Line

Missing mortgage payments feels terrifying, but you have options and time. Many Denver area homeowners have been exactly where you are and found solutions.

The worst thing you can do is ignore the problem and hope it goes away. The best thing? Take action now while you still have choices.

Whether you work with your lender, sell traditionally, or choose a fast cash sale, you can get through this. Your house payment doesn’t have to ruin your life or your credit.

Need help evaluating your options? Contact a HUD housing counselor at 1-800-569-4287 or visit www.ColoradoHousingAssistance.org for free, confidential guidance specific to Colorado homeowners.

You’re going to be okay. Take it one step at a time.

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This article provides general information about foreclosure timelines and options in Colorado. Every situation is different, so consult with housing professionals, attorneys, or financial advisors for advice specific to your circumstances.