Colorado Foreclosure Process and Laws
Quick Facts About the Colorado Foreclosure Process
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Primary Security Instruments: Deed of Trust, Mortgage
Timeline: Typically 60 days
Right of Redemption: Yes
Deficiency Judgments Allowed: Yes
In Colorado, lenders may use a judicial or non-judicial foreclosure process on mortgages in default.
When no power of sale is present, a judicial foreclosure process is done. This entails obtaining a court order to foreclose. The property can then be sold to the highest bidder.
The non-judicial foreclosure process is done when there is a power of sale clause. This means that the borrower has pre-authorized the sale of the property in case of a default. The lender or his representative, called a trustee, has the power to sell the property.
Power of Sale Foreclosure Guidelines
In Colorado, a “Public Trustee” is appointed by the governor to oversee the fair handling in a power of sale foreclosure. This process is done by:
The lender with the help of his lawyer must send the required documents to the Office of the Public Trustee. The Public Trustee will then record a “Notice of Election and Demand” with the county clerk. This notice will then be published in the local newspaper for five consecutive weeks.
The Public Trustee must also send the notice to the borrower and any other owner of the record within 10 days after its publication in the newspaper. In addition to this, another letter must be sent to the borrower 21 days before the foreclosure sale stating how to reclaim the property.
If the borrower plans to stop the foreclosure, he may file an “Intent to Cure” 15 days before the sale and pay the corresponding fees by12pm of the day before the foreclosure sale.
The foreclosure sale must be made within 45 to 60 days after recording of the election and demand for sale. This sale is usually done in front of the county courthouse or in the provision stated in the deed of trust.
The lender may file a deficiency suit and the borrower has up to 75 days to reclaim the property by paying the amount it was sold plus interest.
Foreclosure Avoidance Counseling
HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.
If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.
Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.
RICK M. GARCIA
Denver Regional Office
Department of Housing and Urban Development
Denver, Colorado 80202-4801
Phone: (303) 672-5440
Fax: (303) 672-5004
TTY: (303) 672-5022
Jurisdiction: State of Colorado