Colorado
Foreclosure Law
Summary
Quick Facts
- 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 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.
DISCLAIMER
