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Colorado foreclosures are back in the headlines, and Colorado runs above the national average on empty "zombie" foreclosures. ATTOM reported on October 30 that 4.1% of Colorado homes in foreclosure sit vacant, against 3.0% nationally. FHA-backed foreclosure auctions are up 73% from a year ago, HousingWire reported from Auction.com data. For Denver buyers shopping Colorado foreclosures, bank-owned homes and Denver HUD homes, and for owners who are behind on payments, here is what the new numbers say and what to do next.
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Send me new listingsWhat is my home worth?4.1% Colorado zombie foreclosure rate ATTOM, Q4 2026; U.S. rate 3.0% | +73% FHA foreclosure auctions, year over year Auction.com Q3 2026, via HousingWire |
152 Denver homes sold at trustee auction, 2026 Denver Public Trustee, more than all of 2025 | 134 Bank-owned homes for sale, 10 counties kennarealestate.com, Nov. 3, 2026 |
Colorado's zombie foreclosure rate is above the national average
A zombie foreclosure is a home in the foreclosure process that the owner has already left. ATTOM's fourth-quarter 2026 vacant property and zombie foreclosure report (Oct. 29) and its state-by-state ranking (Oct. 30) found:
| ATTOM, Q4 2026 | Homes in foreclosure that are vacant | Zombie rate |
|---|---|---|
| Colorado (18th of 50 states) | 108 | 4.1% |
| United States | 8,040 of 269,195 | 3.0% (3.3% last quarter) |
ATTOM CEO Rob Barber said vacant and abandoned homes "continue to represent a relatively small share of the nation's housing stock." 108 homes across Colorado is not a wave. Vacant homes still matter more than the count: an empty house going into a Colorado winter picks up frozen pipes, roof leaks and break-ins, and many of these homes come back to market as bank-owned properties sold as-is.
FHA loans are driving more foreclosure auctions
Auction.com's third-quarter 2026 data, reported by HousingWire on Oct. 23, showed completed foreclosure auctions up 25% from a year earlier, the highest quarterly total since early 2020. FHA-insured loans led the increase: FHA auction volume rose 73% and made up 43% of all foreclosure auctions, the highest share since 2015. Colorado's completed auctions ran 246% above the state's own early-2020 level.
That is where HUD homes come from. When an FHA-insured home goes to a foreclosure sale and no outside bidder buys it, the lender conveys it to HUD to settle the insurance claim, and HUD lists it for sale. More FHA foreclosures this fall point to more HUD homes on the market in the months ahead. Read how they sell on our Colorado HUD homes page and FHA post-foreclosure homes guide.
What Denver's own foreclosure filings show
The Denver Public Trustee posts running foreclosure totals for the City and County of Denver. The page lists no cutoff date for its 2026 figures; we checked it on Nov. 3, 2026.
| Denver Public Trustee | 2026 year to date | All of 2025 |
|---|---|---|
| Foreclosure starts | 496 | 677 |
| Withdrawals (cured or stopped) | 294 | 475 |
| Certificates of purchase (sold at auction) | 152 | 129 |
| Confirmation deeds | 140 | 126 |
The number to watch is the certificates of purchase. A certificate goes to the winning bidder at the public trustee sale, so it counts homes that actually went to auction rather than filings later cured. Denver has already passed its 2025 total with two months left in the year.
Bank-owned and short-sale homes for sale today
Active and coming-soon listings marked bank-owned (REO) or short sale on kennarealestate.com, November 3, 2026.
| County | Bank-owned (REO) | Short sales | REO median list price |
|---|---|---|---|
| Denver | 31 | 92 | $249,000 |
| Arapahoe (Aurora) | 37 | 82 | $152,000 |
| Adams | 24 | 76 | $325,000 |
| Jefferson (Lakewood) | 13 | 20 | $329,000 |
| Weld | 8 | 23 | $462,200 |
| Larimer | 7 | 9 | $124,500 |
| Douglas | 5 | 20 | $665,000 |
| Boulder | 5 | 3 | $674,900 |
| Broomfield and Clear Creek | 4 | 3 | - |
| 10 counties | 134 | 328 |
41 of those 462 homes hit the market in the last 7 days, 11 of them bank-owned homes in Arapahoe County. In the last 90 days, 61 bank-owned homes and 118 short sales closed in these counties. Browse every listing on Colorado foreclosure homes for sale, short sale homes and distressed homes for sale.
How this affects you
Buyers. Denver's bank-owned median list price is $249,000, well under the city's overall median. Know the three doors: public trustee auctions are paid in certified funds with no inspection; bank-owned homes are listed with an agent and inspected like any sale; HUD homes are bid through a HUD-registered broker, with owner-occupant buyers getting the first round of bids. Ask your lender about an FHA 203(k) renovation loan before you shop; see Colorado FHA loans explained and FHA-eligible homes in Denver.
Sellers. 328 short sales are competing for buyers right now. If you have equity and a payment problem, a regular sale beats an auction: price it to sell in 30 days, before the trustee sale date. Start with a home value report.
Homeowners who are behind. Denver withdrew 294 foreclosures this year, which means owners stopped them. Call your servicer, ask about a repayment plan, forbearance or modification, and talk with a HUD-approved housing counselor (their help is free). Read behind on your mortgage in Colorado, how to stop a foreclosure in Colorado and stopping a Denver foreclosure. If you owe more than the home is worth, see am I underwater?, compare your options and short sale help.
The Colorado market. Distressed sales are still a small slice: 462 listings in these 10 counties, while Colorado had 27,141 homes for sale on Nov. 2. They add price pressure in Aurora, Denver and Adams County, where most of them sit. See the Denver real estate statistics and Colorado market reports.
What to watch out for
- Winter damage. Vacant homes freeze. Budget for an inspection, a sewer scope and a repair cushion.
- Auction rules. Trustee sales want certified funds, and you buy without seeing inside.
- Title and liens. Get a title commitment. HOA liens and tax liens follow some properties.
- Foreclosure rescue scams. Never pay an upfront fee to "save" your home or sign over your deed. Housing counselors are free.
- Deadlines. Colorado foreclosures run on a public trustee timeline with a cure deadline. Ask the trustee for yours.
This article is general information, not legal or financial advice. Talk with a Colorado real estate attorney or a HUD-approved housing counselor about your situation.
Sources
- ATTOM, Zombie Foreclosure Rates by State, Q4 2026, Oct. 30, 2026
- ATTOM, Q4 2026 Vacant Property and Zombie Foreclosure Report, Oct. 29, 2026
- HousingWire, Foreclosure auctions up 25% in the past year, hit a post-pandemic peak (Auction.com Q3 2026 data), Oct. 23, 2026
- City and County of Denver, Denver Public Trustee foreclosure statistics, checked Nov. 3, 2026
- kennarealestate.com active and coming-soon bank-owned and short-sale listings, 10 counties, Nov. 3, 2026
Denver foreclosure, bank-owned and short sale homes
Newest distressed listings in Denver County on kennarealestate.com, updated daily.
