How To Find and Buy a Foreclosed Home in Colorado

By Jeff Ryder

Jeff Ryder moved to Colorado Springs in 1993 as a Flight Paramedic at Fort Carson, serving in the U.S. Army. After his military service, he transitioned into journalism as a news anchor for the local CBS affiliate, KKTV, where he spent three years delivering stories that mattered to the community. His passion for helping people led him into real estate, where he has since built a thriving career, assisting over 1,500 families in making their next move.

Are you wondering how to find and buy a foreclosed home? With today’s market shifting, more buyers are asking me if foreclosures might be the right opportunity to explore getting one.

What is a foreclosure? It’s a property owned by a homeowner who falls behind on their mortgage, and the bank or lender takes the house back. These homes often go back on the market at a lower price than other similar homes in the area.

While we’re nowhere near the levels of the Great Recession from 2006 to 2012, the number of foreclosures has ticked up a bit, making this an interesting time to consider this option.

However, foreclosures aren’t for everyone. They can come with challenges, but with the right guidance and preparation, they can also represent one of the best ways to build equity in today’s market. Here are three important things to keep in mind:

1. Hire an experienced agent. Work with someone who understands foreclosures. Back in the day, one out of every three homes I sold was a foreclosure or short sale.

A seasoned agent can guide you through the process, explain the difference between bank-owned, HUD, and auction properties, and give you access to listings that might not appear on public websites. They’ll also help you handle the paperwork and negotiation, which are often different from a traditional sale.

2. Research and identify foreclosed homes. Your agent is a great resource, but you can also do some digging yourself. Many real estate websites flag foreclosed properties, and there are government resources like the HUD Home Store or Fannie Mae’s HomePath program.

Don’t overlook local banks and credit unions either; sometimes, they have repossessed homes they’re eager to sell. Combine your research with your agent’s experience, and you’ll be ready to move quickly when the right opportunity comes up.

3. Inspect the home thoroughly. Almost all foreclosures are sold as-is, meaning the bank won’t make repairs. That’s why a professional inspection is so important. If issues like roof damage, plumbing problems, or deferred maintenance are found, you’ll know what you’re dealing with.

Sometimes, you can even use the inspection report to negotiate a better price with the bank. Other times, you may decide the property just isn’t worth the risk. Either way, knowledge is your best tool for making a confident decision.

If you’ve been thinking about buying a home and want to stretch your budget, a foreclosure could be worth exploring.

Learn more about foreclosure opportunities and short sales here in Colorado Springs. I’d be happy to walk you through the process and share the latest listings. Call me at (719) 624-0351 or send an email to jeffryder@kw.com, and let’s talk about whether a foreclosure might be the right path for you.