I have owned a home in Colorado for many years. A year ago I lost my job and fell behind in my mortgage payments. I lost my home to foreclosure a few weeks ago. But I just came into some money. Can I get my home back?
No, you cannot get your home back after the foreclosure sale. In some states, a foreclosed homeowner can repurchase or “redeem” the home after losing it in foreclosure. However, in Colorado, the only parties who can redeem are junior lienholders.
Brief History of Colorado’s Redemption Law
In the past, homeowners in Colorado had the right to redeem the home after a foreclosure. However, a law that took effect on January 1, 2008 eliminated the owners' right to redeem their property following a foreclosure sale. (Some outdated websites state that you do have the right to redeem the home after a foreclosure sale in Colorado, but this is not correct.)
Foreclosed Homeowners Cannot Redeem After a Nonjudicial or Judicial Foreclosure
In Colorado, the foreclosed homeowner does not have the right to redeem the property (Colo. Rev. Stat. § 38-38-302). It does not matter if the foreclosure was nonjudicial (where the foreclosure takes place without court supervision) or judicial (where the lender files a lawsuit in court to foreclose your home).
Only those parties that held a junior lien (such as a second mortgage or other lien that is subordinate to the mortgage being foreclosed) on the foreclosed home may redeem after the sale (Colo. Rev. Stat. § 38-38-302, § 38-38-100.3 (11)). (Learn more about junior liens and how lien priority works in a foreclosure.)
Don’t Wait Until After the Foreclosure to Try to Save Your Home
If you want to keep your home, you need to take action before the foreclosure sale. For example, you could:
- pay off the past-due amounts to reinstate (catch up on) the loan, or
- try to work out an alternative to foreclosure that will allow you to keep the property, such as a mortgage modification, forbearance agreement, or repayment plan.
Foreclosures in Colorado only take a few months to complete so be sure to explore alternatives to foreclosure as soon as possible. (To learn more about foreclosure laws and procedures in Colorado, visit Nolo’s Colorado Foreclosure Law Center.)
Finding Colorado’s Redemption Laws
To find the statute that discusses the right to redeem the home after a foreclosure in Colorado, go to Title 38, Article 38, Part 1 of the Colorado Revised Statutes.