Short sale & foreclosure FAQ

In Colorado, recording an NED starts a Public Trustee foreclosure. It is not merely a warning letter. The file becomes public, a sale date is set, and notices — including newspaper publication — follow. Your combined notice and Public Trustee communications control the exact dates for your property.

Once the NED is recorded, the foreclosure generally moves toward a scheduled sale on a fixed calendar (often on the order of a few months for a typical residential file — your notice controls). Mail notice, newspaper publication, cure deadlines, and the sale itself leave limited time to market a short sale, get an offer, and obtain lender approval. Packages submitted with almost no runway often fail for lack of time, not for lack of effort.

Often yes, if you follow Public Trustee and loan rules — typically including a Notice of Intent to Cure filed by a deadline before sale and payment by a strict cutoff. Confirm exact requirements and amounts with the Public Trustee and your servicer. Curing can stop that foreclosure path for that file; recorded history may still exist in county records.

A short sale is when your lender (and often the investor / mortgage insurer) agrees in writing to let the home sell for less than the total debt, and the sale closes before the Public Trustee auction. Approval is required and is never automatic.

Foreclosure: the Public Trustee sale path started by the NED — public notice, auction timeline, typically severe credit impact, and possible deficiency pursuit in a recourse state like Colorado.

Short sale: open-market sale for less than owed, with written lender approval, closed before auction. More control over marketing and (if approved) contract-based possession — but still uncertain.

Deed-in-lieu: you deed the property to the lender if they accept. Can avoid an auction, but the lender must agree; junior liens and written deficiency terms still matter. High-level only — ask a Colorado attorney which path fits your facts.

For many homeowners, a completed short sale means an open-market sale, more say over move-out (via the contract after approval), often less severe credit reporting than a completed foreclosure, and a chance to negotiate a deficiency waiver. Foreclosure still proceeds on a public auction timeline with newspaper notice. Whether a short sale is available or preferable depends on your loan, equity, timing, hardship, and junior liens. Peter can discuss the short-sale path; an attorney advises on legal options. No outcome is guaranteed.

Colorado is a recourse state, so deficiency risk exists after foreclosure and can exist after a short sale or deed-in-lieu unless the lender waives it in writing. Read every approval letter carefully. Do not close without understanding deficiency language. This is not legal advice — have counsel review documents if needed.

Missed payments, short sale, deed-in-lieu, and foreclosure all hurt credit. A completed foreclosure is typically among the most severe. Waiting periods for a future conventional, FHA, or VA loan vary by program and change over time — ask a mortgage professional for current rules that apply to you; we do not invent waiting-period statistics here. Move-out after foreclosure often follows the new owner’s timeline; after a short sale it is usually negotiated in the purchase contract once the lender approves.

Peter assembles and submits the short-sale package, markets the home, presents offers to the servicer’s short-sale / loss-mitigation desk, responds to document and valuation requests, and coordinates title and closing if an approval issues. The broker does not decide the approval, set investor rules, or guarantee a deficiency waiver or sale postponement.

No. Lenders can decline offers, demand different terms, run out of time before the Public Trustee sale, or require conditions you cannot meet. Junior lienholders may refuse to release. Treat every file as uncertain until you have a signed approval letter and a closed transaction.

Forgiven mortgage debt can appear as income on a Form 1099-C unless an exclusion applies. Tax rules are personal — talk to a CPA before you rely on any assumption.

The initial consultation to discuss whether a short sale may fit your situation is framed as no-cost. Real estate brokerage compensation on a short sale is typically addressed in the listing agreement and lender approval (often paid from sale proceeds per the approval). Ask Peter to explain how fees work on your file.

As soon as you know an NED was recorded — or earlier if you are already behind. Short-sale reviews take time. Reach Peter at (720) 299-7373 or [email protected].

We focus on metro Denver / Front Range and many mountain and resort counties (see the home page list). If your property is elsewhere in Colorado, call or email — we’ll tell you if we can help or point you in a useful direction.

No. Peter Janisch is a licensed Colorado real estate broker (Broker/Owner, Professional Brokers Group) with 20+ years of Colorado short sale experience. This site and any brokerage conversation are not legal advice. For legal questions about your rights, foreclosure defense, or bankruptcy, consult a Colorado attorney.