Colorado Homeowner Resource

Having Trouble Making Your Mortgage Payment? Options for Colorado Homeowners

Quick answer: Contact your mortgage servicer as soon as you expect a problem, ask for its mortgage assistance process and speak with a HUD approved housing counselor. Depending on the loan and hardship, possible paths may include forbearance, a repayment plan, payment deferral, loan modification or selling the home before the situation advances.

Call John: 720.877.1940 Start the Action Plan Could Selling Help?

Start earlyMore time usually means more choices

Free counselingForeclosure prevention counseling through HUD approved agencies is free

Missed payments remain dueForbearance is temporary relief, not automatic forgiveness

Do Not Wait for a Missed Payment

What should you do when the mortgage payment may become difficult?

Mortgage relief options for Colorado homeowners begin with early, direct communication. Call the company shown on your mortgage statement as soon as you know there may be a problem. Explain whether the hardship appears temporary or lasting, ask for the mortgage assistance or loss mitigation department and request a written list of the documents needed for review.

ContactCall the mortgage servicer and respond to every letter, secure message and request.

DocumentWrite down dates, names, confirmation numbers, deadlines and every document submitted.

Get guidanceUse a HUD approved housing counselor for free foreclosure prevention counseling.

Compare pathsReview both home retention options and a possible sale while time remains.

Keep paying what the servicer instructs you to pay. Do not stop or redirect payments because a third party tells you to. Do not assume an application, phone call or pending home sale changes the loan requirements unless the servicer confirms it in writing.

Find the Right Door

Why does the owner or insurer of the mortgage matter?

The company collecting the payment is the mortgage servicer. Another entity may own, insure or guarantee the loan. That distinction can affect which assistance options the servicer is allowed to offer.

Conventional

Fannie Mae or Freddie Mac

Many conventional loans are owned by Fannie Mae or Freddie Mac. Their online lookup tools can help identify ownership.

Government insured

FHA

FHA provides servicers with defined home retention and home disposition options for eligible borrowers.

Military benefit

VA

VA borrowers can contact the servicer and request help from a VA loan technician when payments become difficult.

Rural housing

USDA

USDA Direct and Guaranteed loans use different servicing channels. Start with the statement and confirm the correct program.

If you are unsure, use the Consumer Financial Protection Bureau guide to working with a mortgage servicer. It includes official contacts and explains how to identify who owns, insures or backs the loan.

Possible Home Retention Options

What options might help a homeowner stay in the home?

Availability and eligibility depend on the loan, servicer, investor rules, payment history and financial information. These are categories to ask about, not guaranteed offers.

Forbearance

Payments may be paused or reduced for a limited period. The unpaid amount is not automatically forgiven, so ask exactly how and when it must be resolved.

Repayment plan

A portion of the past due amount may be added to regular payments for a set period. Confirm that the larger payment is sustainable before agreeing.

Payment deferral or partial claim

Some programs may move eligible past due amounts to a later payoff point or separate subordinate balance. Terms and availability vary by loan.

Loan modification

The servicer may permanently change one or more loan terms. Past due amounts may be added to the balance, and the term or payment may change.

Refinance

A new loan may help in some circumstances, but approval, value, equity, credit, income, rates and closing costs all matter. Refinancing is not guaranteed hardship relief.

Could selling before foreclosure help protect the homeowner’s equity?

Yes, when keeping the home is no longer financially sustainable and the likely sale proceeds can pay the mortgage, liens and selling expenses. Starting early may give the homeowner more control over pricing, preparation, timing and the move. A completed sale does not erase any late payments already reported and cannot guarantee a particular credit result.

How John can help

Turn the property into a real decision

Estimate a supportable market value range
Compare the estimated mortgage payoff with likely selling expenses
Prepare an estimated seller net sheet
Review a traditional, limited preparation or as is launch
Build a listing and closing timeline around known deadlines

What remains with specialists

Keep every professional in the correct role

The servicer decides mortgage assistance and payoff requirements
A HUD approved counselor helps evaluate foreclosure prevention options
An attorney advises on legal rights and deadlines
A tax professional addresses possible tax consequences
A credit professional can discuss the individual credit file

Do not list the home on an assumption. Request current payoff information, identify every lien and compare a realistic sale range with the complete cost of selling. If the proceeds may be insufficient, the servicer must be involved before representing that a short sale or other alternative is possible.

Talk With John Early Understand Home Equity Read the Colorado Seller Guide

A Simple Illustration

How can an early equity review change the conversation?

Consider a homeowner whose property may sell near $600,000 and whose approximate mortgage payoff is $410,000. The difference is $190,000 in estimated gross equity, not cash at closing.

Possible sale value

$600,000

A working estimate based on local comparisons, current competition and property condition.

Approximate payoff

$410,000

The servicer’s official payoff may include interest, fees or other adjustments not shown on the monthly balance.

Estimated gross equity

$190,000

Selling costs, repairs, concessions, other liens, taxes and moving expenses would reduce the amount available after closing.

If a reasonable net estimate leaves enough room to pay the mortgage and other obligations, an ordinary sale may be possible. If it does not, the homeowner should speak with the servicer and a housing counselor about a potential short sale, deed in lieu or another available option. Never assume the servicer will accept less than the full payoff.

Be Precise About Credit

Will selling the home prevent damage to the seller’s credit?

No one should promise that outcome. A mortgage servicer may report delinquent payments, and a sale does not remove accurate payment history that was already reported. A repayment plan may also leave the loan classified as delinquent until the missed amount is resolved.

Before a missed payment

An early conversation may preserve more options. Ask the servicer how each available path may be reported and obtain the terms in writing.

After payments are late

Act quickly. Selling may help stop the situation from advancing, but it does not erase prior delinquency or guarantee how a future creditor will evaluate it.

When foreclosure is moving

Deadlines become critical. Contact the servicer, a HUD approved counselor and a qualified attorney, and never assume a listing pauses the process.

Credit information is individual. Ask the servicer about reporting, review your own credit reports and consult a qualified credit or financial professional when you need advice about a personal credit profile.

Prepare Once, Use It Often

What should a homeowner gather before asking for help?

A complete, organized file makes it easier to explain the hardship, respond to the servicer and compare a retention option with a possible sale.

The most recent mortgage statement and every letter from the servicer
A clear explanation of what changed and whether it appears temporary or lasting
Recent income records, bank statements and a realistic household expense list
Property tax, homeowners insurance, HOA and metro district information
Other liens, judgments, home equity loans or credit lines tied to the property
Repair concerns that could affect value, insurance, financing or marketability
Every assistance application, document request, deadline and confirmation number
A possible move plan if keeping the home no longer appears sustainable

Protect the Homeowner

What are the warning signs of a mortgage relief scam?

Legitimate help is available directly through the mortgage servicer and through HUD approved housing counseling. Be cautious when someone creates urgency, guarantees a result or asks to control the payment or title.

A company demands an upfront fee to stop foreclosure or obtain a modification.
Someone guarantees the loan will be modified or the home cannot be lost.
You are told to stop paying the servicer or send the mortgage payment somewhere else.
You are pressured to sign over the deed, share sensitive information or sign documents you do not understand.
A company claims to be an official government program but cannot be verified through an official government source.

The Consumer Financial Protection Bureau’s foreclosure relief scam guide explains these warning signs and where to report a problem.

Colorado and Federal Help

Where can Colorado homeowners find legitimate assistance?

Use official sources and confirm the address before sharing financial information. Eligibility and available solutions can change, so start with the current mortgage statement and the resources below.

Consumer Financial Protection BureauPlain language mortgage hardship options and a guide to contacting the servicer. HUD Approved Housing CounselingLocate a housing counseling agency. Foreclosure prevention counseling is free. Colorado Housing ConnectsColorado homeowner assistance, including help with avoiding foreclosure and refinancing questions. Colorado Attorney GeneralMortgage servicer consumer information and the Colorado complaint process. FHA Loss MitigationOfficial FHA home retention and home disposition options. VA Home Loan AssistanceGuidance for veterans having trouble making mortgage payments.

Direct Answers

Frequently asked questions about mortgage hardship

Should I wait until I miss a mortgage payment before calling the servicer?

No. Call as soon as you expect a payment problem. Early contact provides more time to understand the application, collect documents and compare available choices.

Does mortgage forbearance forgive the missed payments?

No. Forbearance temporarily pauses or reduces payments. The unpaid amount remains owed and must be resolved using the terms offered by the servicer.

What is the difference between forbearance and a loan modification?

Forbearance is temporary payment relief. A loan modification permanently changes one or more mortgage terms. Eligibility, payment treatment, interest and repayment details vary.

Can I sell my home if I am behind on the mortgage?

It may be possible. The sale must address the mortgage payoff, other liens and selling expenses. If the expected proceeds are insufficient, a short sale would require the servicer’s approval. A listing does not automatically stop foreclosure activity.

Can selling before foreclosure protect my credit?

A completed sale may prevent the situation from advancing to foreclosure, but it does not erase accurate late payments already reported and cannot guarantee a credit score or future lending result. Ask the servicer how each option may be reported.

What if the home is worth less than the mortgage payoff?

Contact the servicer and a HUD approved housing counselor. Possible options may include a short sale, deed in lieu or another loan specific solution, but approval and terms are not guaranteed.

Can John negotiate a loan modification for me?

No. John’s role is real estate advice related to market value, property condition, sale strategy, likely expenses, estimated net proceeds and timing. Mortgage assistance belongs with the servicer and a housing counselor, while legal, tax and credit questions belong with the appropriate qualified professionals.

What can John do before I decide whether to sell?

John can review local comparable sales, estimate a possible value range, discuss preparation choices and create an estimated net sheet. That information can help a homeowner compare selling with other written options before committing to a path.

Is foreclosure prevention counseling really free?

HUD states that foreclosure prevention counseling through HUD approved housing counseling agencies is always available free of charge. Other housing counseling services may have reasonable fees.

Official Sources

Information used for this homeowner guide

Reviewed October 21, 2026. Mortgage assistance options, program terms and agency guidance can change. Confirm the current requirements with the mortgage servicer and the official agency responsible for the loan.

Educational information only: This article is not mortgage servicing, credit repair, lending, legal, tax, accounting or financial planning advice. It does not guarantee assistance, a sale, net proceeds, foreclosure prevention or a credit outcome. Obtain advice about your own circumstances from the appropriate qualified professionals.