Timeline:
2-6 months
Redemption:
75 days after sale
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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The
Judicial Foreclosure process is used in Colorado when there
is no “power of sale” clause in the original loan documents.
The lender must sue the borrower to obtain a court order to
foreclose on the property.
The
Non-Judicial Foreclosure process is used when there is a “power
of sale” clause in the original loan documents. The Governor
of Colorado appoints a Public Trustee for each county. This
Public Trustee acts as a disinterested third party to handle
the foreclosure process.
The
lender's attorney files documents with the Public Trustee, who
records a notice of election and demand. This is filed with
the county clerk, and the Public Trustee then publishes the
notice of election and demand in a newspaper in the county for
five (5) consecutive weeks. |
A copy of the notice of election
and demand is mailed to the borrower within ten (10) days of
the publication. A notice of sale is also mailed to the borrower.
At least twenty-one (21) days before the sale, the Public Trustee
must mail the borrower a notice containing instructions on how
to redeem the property.
The
sale may be stopped by the borrower by filing a notice of intent
to cure. This must be filed with the Public Trustee at least
fifteen (15) days before the sale. The borrower has until noon
of the day before the sale to bring the loan current.
Within
forty-five (45) to sixty (60) days of the notice of election
and demand being filed, the sale must be conducted. The sale
takes place at any entrance to the county courthouse, unless
the deed of trust specifies otherwise.
The
borrower has seventy-five (75) days to redeem the property.
The amount the property sold for at the auction, plus interest,
is the redemption amount.
f the
property does not sell for the loan balance plus costs, the
lender has the right to sue the borrower for a deficiency judgment.
Colorado Foreclosure Law