Colorado Foreclosure Law Summary
Stop Colorado Foreclosure
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of
Trust, Mortgage
- Timeline: Typically four months
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Colorado, lenders may foreclose on deeds of trusts
or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves
filing a lawsuit to obtain a court order to foreclose, is used when no power of
sale is present in the mortgage or deed of trust. Generally, after the court declares
a foreclosure, your home will be auctioned off to the highest bidder.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when
a power of sale clause exists in a mortgage or deed of trust. A "power of sale"
clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes
the sale of property to pay off the balance on a loan in the event of the their
default. In deeds of trust or mortgages where a power of sale exists, the power
given to the lender to sell the property may be executed by the lender or their
representative, typically referred to as the trustee. Regulations for this type
of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
The foreclosure process in Colorado is quite a bit different than in other states
because here, the governor appoints a "Public Trustee" for each county in the state.
The trustee must act as an impartial party when handling a power of sale foreclosure.
In Colorado, the non-judicial power of sale foreclosure is carried out as follows:
The process begins when the attorney representing the lender files the required
documents with the Office of the Public Trustee of the county where the property
is located. The Public Trustee then files a "Notice of Election and Demand" with
the county clerk and recorder of the county. Once recorded, the notice must be published
in a newspaper of general circulation within the county where the property is located
for a period of five (5) consecutive weeks.
The Public Trustee must also mail, within ten (10) days after the publication
of the notice of election and demand for sale, a copy of the same and a notice of
sale as published in the newspaper, to the borrower and any owner or claimant of
record, at the address given in the recorded instrument. The Public Trustee must
also mail, at lease twenty-one (21) days before the foreclosure sale, a notice to
the borrower describing how to redeem the property.
The owner of the property may stop the foreclosure proceedings by filing an "Intent
to Cure" with the Public Trustee's office at least fifteen (15) days prior to the
foreclosure sale and then paying the necessary amount to bring the loan current
by noon the day
before the foreclosure sale is scheduled.
The foreclosure sale must take place between forty-five
(45) and sixty (60) days after the recording of the election and demand for sale
with the county clerk and recorder. The Public Trustee may hold the sale at any
entrance to the courthouse, unless other provisions were made in the deed of trust.
The lender has the option to file a suit for deficiency
in Colorado and the borrower has up to seventy five (75) days after the sale to
redeem the property by paying the foreclosure sale amount, plus interest.
More information on Colorado foreclosure laws.
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