Summary of Colorado's Foreclosure Laws

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If you are facing foreclosure in Colorado, it’s important to understand some of the basics, including:

  • the most common type of foreclosure procedure (judicial v. nonjudicial) used in Colorado
  • how much time you have to respond
  • your rights and protections in the process, and
  • what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

 Below we have outlined some of the most important features of Colorado foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic

State Rule

Most common type of foreclosure process

Nonjudicial under power of sale in deed of trust. The foreclosing party must file proof of debt ownership and the default with a public trustee, who oversees the process. The mortgage holder must separately obtain a court order in a Rule 120 proceeding authorizing the sale and give the public trustee a copy of the order before the sale date.

Time to respond

Thirty days before recording the Notice of Election and Demand, and at least 30 days after the first default in payments, borrower must be served with information about state hotline and how to contact the foreclosing party's loss-mitigation department. After the Notice of Election and Demand has been recorded (110 to 125 calendar days before the sale date), public trustee must mail a Combined Notice of Sale, Right to Cure, and Right to Redeem to the borrower within 20 calendar days after the recording date. The trustee must mail the notice again between 45 and 65 days before the sale date. Notice of the Rule 120 hearing must be mailed to the borrower and posted on the property not less than 14 days prior to the hearing date. Colorado law permits certain borrowers to defer (delay) the foreclosure for up to 90 days. Deferment law is set to sunset (expire) September 1, 2015.

Reinstatement of loan before sale

Available until noon on the day before the sale, provided that borrower gives the foreclosing party written notice (no later than 15 calendar days before the sale date) of intent to reinstate the mortgage

Redemption after sale

Available to some lienholders but not to borrower

Special protections for foreclosures involving high-cost mortgages

None

Special state protections for service members

Colorado law provides certain protections against foreclosure for National Guard members when called to state military service or called to state defense force active duty for over 30 days. Colo. Rev. Stat. § 28-3-1406

Deficiency judgments

Allowed, but the borrower can raise a defense against the action for a deficiency judgment if the house was sold for less than its fair market value

Cash exempted in bankruptcy

None

Notice to leave after house is sold

The new owner must make a demand for possession. If the former owner does not vacate, then the new owner files the lawsuit to evict.

Foreclosure statutes

Colo. Rev. Stat. §§ 38-38-100.3 to 38-38-114

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