Colorado Foreclosure Information
When you develop a definite plan of action with well-timed, well-informed
steps, you can stop the foreclosure process and save your home. We have outlined the foreclose
process for the state of Colorado.
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: Yes
Public Trustee - A Colorado Concept
In contrast to most states, where the trustee is usually the hired gun of the lender, Colorado
has an impartial, accountable, "public trustee" appointed by the Governor for
each county, who handles power of sale foreclosures on request. The public trustee may take
only the compensation set by law. A private lender engages a public trustee by filing with
the trustee two copies of a notice of election and demand for sale, the original note or
a suitable bond and a mailing list of persons who must receive foreclosure notices.
Non-judicial Foreclosure
Preliminary Notices
Advertising
A notice of sale stating the time and place of the foreclosure must be advertised
in accordance with the terms of the deed of trust, but under Colorado law all deeds of trust
must prescribe a weekly advertising period for the notice of sale in a newspaper of general
circulation, of not less than four weeks.
Recording
The public trustee must record the lender’s notice of election and demand
for sale.
Mailing
The public trustee must mail, within ten 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 21 days before the
foreclosure sale, a notice to the borrower describing how to redeem the property.
Right-to-Cure Default
If the loan default is due to nonpayment, then the borrower can give notice
of an intention to cure the default at least seven days before the foreclosure sale. The
trustee must then, on request, investigate and tell the borrower the sum due on the loan.
If, on or before 12:00 noon of the day before the date of the sale, the owners, parties
or borrowers pay to the officer conducting the sale all delinquent principal and interest
payments that are due as of the date of such payment, plus costs, expenses, late charges
and attorney’s fees, but not future principal (since no extra debt is allowed due to acceleration)
then the foreclosure must be stopped. This right my be exercised more than one time.
Sale Procedures
Date
The foreclosure sale must be held between 45 days and 60 days after the
recording of the election and demand for sale.
Place
The public trustee may conduct the sale at any door or entrance to a courthouse,
not withstanding the deed of trust’s provisions, or the trustee may conduct the sale at
the location specified in the deed of trust.
Post-Sale Matters
The trustee will pay an excess proceeds from the foreclosure sale to creditors
in order of their priority, and the balance to the grantor, who has five years to claim
it. Title is conveyed by deed to the higher bidder, who may be the lender.
Deficiency
The lender may sue for a deficiency.
Redemption
The borrower has 75 days after the date of sale to redeem the premises by
paying the public trustee the sum for which the property was sold, with interest. A variety
of redemption periods exists for junior lien holders. Special rights exist in the case of
agricultural borrowers.
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