Colorado Foreclosure Help – Stop Foreclosure in Colorado

 


Finding Foreclosure Help in Colorado

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
Regional Director

Denver Regional Office

Department of Housing and Urban Development
1670 Broadway
Denver, Colorado 80202-4801

Phone: (303) 672-5440
Email: CO_Webmanager@hud.gov
Fax: (303) 672-5004
TTY: (303) 672-5022

Jurisdiction: State of Colorado

Colorado Foreclosure Laws Summary

Quick Facts:

  • Judicial foreclosure process is available.
  • Non-judicial foreclosure process is available.
  • The primary security instruments are deeds of trust and mortgages.
  • The timeline can vary by process, which typically takes 60 days.
  • The borrower has the right of redemption.
  • The lender may sue for deficiency judgements.

The judicial and non-judicial foreclosure processes can be used by lenders in Colorado to foreclose on mortgages in default.

Judicial Foreclosure
When no power of sale clause is present in a mortgage deal, the judicial foreclosure process is done. A court order to foreclose is obtained by the lender so that the property can be sold at an auction.

Non-Judicial Foreclosure

The non-judicial foreclosure is used when there is a power of sale clause in the mortgage deal. This means that the borrower has preauthorized the sale of the property in the event of their default. When this happens, the lender or a trustee has the power to sell the property.

Power of Sale Foreclosure Guidelines
In Colorado, the governor appoints a “Public trustee” whose job is to oversee the fair handling of a foreclosure process.

The required documents regarding the mortgage default must be sent by the lender to the Office of the Public Trustee. The Public trustee will then record a “Notice of Election and Demand” with the county clerk, which will then be published in the county newspaper for 5 consecutive weeks. The notice of sale must also be sent by the Public trustee to the borrower within 10 days after its publication in the newspaper, and one more at least 21 days before the sale stating how the property can be reclaimed.

The borrower can stop the foreclosure sale by filing an “Intent to Cure” 15 days before the sale. He will have until 12pm of the day before the sale to pay the corresponding fees.

The sale should take place between 45-60 days after recording of the “notice of Election and Demand.” This is done in front of the county courthouse where the property is located, or in the place stated in the power of sale clause.

A deficiency suit may be filed, and the borrower has until 75 days after the foreclosure sale to reclaim the property by paying the amount for which the property was sold plus interest.