Pre-foreclosure in El Paso County, Colorado: what investors should know
A county of 736,008 people, mostly owner-occupied homes and a heavy military presence. Here is what that means when an owner falls behind on a deed of trust.
What El Paso County housing looks like
If you are researching pre-foreclosure in El Paso County, Colorado, start with who owns the homes. The county has 296,753 housing units and about 66% of homes are owner-occupied. The median home value is $431K, and the county seat is Colorado Springs.
Less free-and-clear ownership. Just 28% of owner-occupied homes have no mortgage, compared with 39% across the U.S. In practice, more owners here have a loan attached to the house. That makes a missed payment a more common route to a distressed sale than it would be in a county full of paid-off homes.
Newer, single-family stock. About 67% of homes are single-family detached (U.S.: 61%), and only 5% were built before 1940 (U.S.: 12%). Fewer very old houses usually means fewer surprises like knob-and-tube wiring or failing foundations, though you should still inspect every property.
Tight vacancy. Vacant units are 5% of the total, half the U.S. figure of 10%. Homes here tend to be occupied, so you will often be talking to a family still living in the house.
Source data: U.S. Census Bureau, American Community Survey.
Source: U.S. Census ACS 2023
Which court filings come before a sale here
Different filings point to different kinds of sellers. In El Paso County the lead types worth understanding are pre-foreclosure, probate, divorce and tax sale.
- Pre-foreclosure: the owner has missed payments and the lender has started the process to sell the property. The owner often still wants options.
- Probate: an owner has died and the estate has to be settled. The home may sit with heirs who live elsewhere.
- Divorce: a couple needs to divide a shared asset, and a sale is sometimes the cleanest answer.
- Tax sale: unpaid property taxes lead first to the Treasurer's yearly auction of a tax lien, not of the property itself; at least three years after that lien sale, the lien holder can apply for a public auction of an option for a treasurer's deed to the property (C.R.S. 39-11-109, 39-11.5-102).
Residents 65 or older make up 14% of the county, below the U.S. figure of 17%, and the median age is 35.0 against 38.9 nationally. This is a younger county. Expect mortgage stress and household changes to drive more activity than estates alone, although probate still matters, especially for older homeowners who did own free and clear.
The Fourth Judicial District has judicial officers presiding over Domestic, Civil, Probate, Juvenile, Criminal and County Court areas, and the El Paso County Combined Court is housed in one facility, the largest in the state. These are public records. Keystone delivers them matched to the owner and property so you can spend your time on conversations, not paperwork.
How foreclosure works in Colorado, in plain terms
Colorado foreclosures on deeds of trust are generally handled outside a full trial. In El Paso County, the Public Trustee's office manages the foreclosure of deeds of trust on properties within the county, following the guidelines and timelines set by the Colorado Revised Statutes. The office is in the Citizens Service Center in Colorado Springs.
A court step still exists. Before a public trustee sale can go forward, the lender has to obtain a court order authorizing the sale, known as a Rule 120 order (C.R.S. 38-38-105). Exact notice periods, cure rights and sale timing are set by statute and can change, and a Colorado attorney can confirm the current deadlines before a date is relied on.
What it means for you. The owner is not out of options on day one. They may cure the default by filing a notice of intent to cure at least 15 calendar days before the sale (C.R.S. 38-38-104), or sell, refinance or negotiate with the lender. Your offer is most useful when the owner has enough time to think, so do not push someone to decide in a hurry.
Probate and divorce differ. Probate is handled in the district court, with a personal representative who has authority to act for the estate (C.R.S. 15-10-201, 15-12-711). Divorce runs through the domestic docket, and the district runs an Office of Dispute Resolution mediation program. A sale in either case often depends on agreement between people, so patience matters.
What the rent and permit numbers say about exit strategies
Not every deal is a flip. HUD's Fair Market Rent for Colorado Springs is $1,621 a month for a two-bedroom and $2,245 for a three-bedroom. With vacancy at 5%, a renovated single-family home has a credible rental exit if the numbers work at your purchase price.
New supply is growing. Builders were permitted for 5,707 new housing units in 2025, up 48% from 2024. More new construction can compete with your resale or rental, particularly for buyers who want newer homes, so price your exit with that in mind.
Military demand. The district is home to five military installations, a major part of the local economy. Service members and families move on regular cycles, which can create both rental demand and sudden sales. Treat these sellers with extra care, since they may be dealing with orders and deadlines as well as debt.
Sources: HUD Fair Market Rents and Census Building Permits Survey.
How to approach owners respectfully and legally
An owner in pre-foreclosure is often scared, embarrassed or both. A short, honest introduction works better than a pitch.
- Say who you are, why you are reaching out and what you can offer. Do not suggest you are from the lender or a government office.
- Do not pressure anyone or imply that time is running out when it is not.
- Accept a no right away. If an owner asks you to stop, stop.
- Put terms in writing and encourage the owner to talk with an attorney or a housing counselor.
If you phone. Telephone solicitations are covered by the National Do Not Call Registry rules, the federal Telemarketing Sales Rule and the Colorado No-Call List Act (C.R.S. 6-1-901 et seq.), and federal rules also limit calling hours and require consent for some automated calls and texts (47 CFR 64.1200). The FTC's guide to the Telemarketing Sales Rule is a good starting point, and an attorney can confirm Colorado requirements.
Grief and divorce. With probate and divorce leads, lead with condolence or patience, not urgency. A brief letter that gives them room to reply often lands better than a call.
What to look for before making an offer
Fewer paid-off homes means thinner equity in many deals, so do the math carefully. A home with a median-range value of $431K can still leave little room if the owner carries a large loan and the lender adds fees.
- Total debt against value. Confirm what is owed on the property and whether other liens exist, using a title professional.
- Condition. Newer single-family homes are common here, but inspect anyway. Deferred maintenance is common when an owner is under financial stress.
- Occupancy. With low vacancy, expect an occupied home. Plan for a respectful move-out timeline.
- Exit. Compare resale prices with the HUD rent figures and with the new supply coming online.
- Legal timing. An attorney can confirm cure rights, sale dates and any authority needed in probate or divorce before anything is signed.
A fair offer that solves the owner's problem is more durable than a low offer that falls apart at closing.
Questions investors ask
Is foreclosure in El Paso County judicial or non-judicial?
It is mainly handled through the Public Trustee under Colorado statute, which makes it non-judicial in structure. A court order authorizing the sale, known as a Rule 120 order, is still required before a public trustee sale (C.R.S. 38-38-105). A Colorado attorney can confirm the current process.
Who runs foreclosure sales in El Paso County?
The El Paso County Public Trustee's office manages foreclosures of deeds of trust on properties within the county. It follows the timelines set in the Colorado Revised Statutes. The office is located in the Citizens Service Center in Colorado Springs.
Why are pre-foreclosure leads more relevant here than in some other counties?
Only 28% of owner-occupied homes are owned free and clear, compared with 39% nationally. That means more owners have a mortgage, so missed payments are a likelier source of distress than in counties with many paid-off homes.
Can I call homeowners in pre-foreclosure?
Calls are allowed, but telephone solicitations must comply with the National Do Not Call Registry rules (47 CFR 64.1200(c)(2)), the federal Telemarketing Sales Rule and the Colorado No-Call List Act (C.R.S. 6-1-901 et seq.). Keep calls honest and low-pressure, and stop when asked. A letter is often a gentler first contact.
Do probate and divorce matter as much as pre-foreclosure in this county?
They matter, but the county skews younger, with a median age of 35.0 and 14% of residents aged 65 or older. Pre-foreclosure and divorce may lead more often than estates, though probate remains a real source of sales.
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