COLORADO FORECLOSURE LAW
Here you will find information specific to Colorado foreclosure law. A brief breakdown of foreclosure facts are listed in the table and are defined more thoroughly just below:
- Judicial Foreclosures YES
- Non-Judicial Foreclosures YES
- Primary Security Instruments Deed of Trust, Mortgage
- How long does it take? About 4 months
- Right of Redemption 75 days
- Deficiency Judments Allowed? YES
- Sale Publication Period 60 days
- Sale/NTS PublicTrustee
Overview
In Colorado foreclosure law, a non-judicial form of foreclosure is the prime method used to foreclose on a property. With non-judicial foreclosures, a court ruling is not necessary to complete the foreclosure process. When the trust deed is signed at the time of purchase, it will include a clause usually referred to as the 'Power of Sale' clause, which allows the trustee to sell the property in case of default. The trustee in the state of Colorado, unlike many other states, is a part of the local government and works to represent the lender in order to sell a property in default at a local auction.
Judicial Foreclosures
Judicial foreclosures also take place in Colorado. In this instance, Colorado foreclosure law allows mortgages to serve as liens on real property. If this is the case, a decision will be made by the court to determine the ultimate fate of the property. The circumstance which allows judicial foreclosure to take place is if the power of sale language is not included in the deed of trust. A lender only needs to file a lis pendens with the recorder to indicate it will be foreclosing on the property.
Non-Judicial Foreclosures
Since Non-Judicial foreclosures account for majority of the foreclosures, this is the method we will focus on more closely. In the state of Colorado, the court's involvement is not necessary and there are strict requirements on how and when notices should be filed. Before beginning the foreclosure process, a lender is obligated to file a 'Notice of Election and Demand' with the local county's public trustee. As regulated by the state, that notice must be recorded with the recorder's office within 10 business days. A copy of that notice will then enter the 60 day sale publication period where it is published once a week for up to 5 weeks. A copy of the notice must also be sent to the borrower within twenty days after the first time it is published.
Once the sale publication period has expired, a notice of sale will be filed with a recorder, which includes the following information: the recording information from the deed of trust, intent of sale, time of the sale, date of the sale, and the location of the sale. At this point, the borrower can still take action by filing intent to cure with the Public Trustee. If a borrower chooses to satisfy the amount that is default, an intent to cure must be filed within 15 days of the actual auction date to sell the property. As long as the borrower pays the amount owed, the foreclosure proceedings will stop. If the foreclosure is uncontested, a non-judicial foreclosure usually takes between 60-70 days to complete.
Right of Redemption
There is a right of redemption period in Colorado foreclosure law. If a borrower has been foreclosed on and their property has been sold in auction already, the borrower has the right to redeem their property. The borrower has up to 75 days after the sale of the property to get the property back as long as long as they pay, in full, the amount of the unpaid loan, taxes, and interest. If one is to redeem their property, they must file an intent to redeem at least 15 days before the end of the right of redemption period.
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