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.
|Common type of foreclosure process||Nonjudicial: under power of sale in deed of trust. The foreclosing party must file proof of ownership and the homeowner’s default with a public trustee, who oversees the process. The mortgage holder must separately obtain a court order in a Rule 120 hearing 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, public trustee must mail notice to the homeowner within ten days after recording a notice of sale, and 110 to 125 days before first scheduled sale date. The combined notices mailed by the public trustee must advise the homeowner of the right to reinstate the mortgage.|
|Reinstatement of loan before sale||Allowed until noon on the day before the sale, provided that homeowner gives the foreclosing party written notice (no later than 15 days before the sale date) of intent to reinstate the mortgage|
|Redemption after sale||Available to some lienholders but not to homeowner|
|Special protections for foreclosures involving high-cost mortgages||None|
|Special state protections for service members||None|
|Deficiency judgments||Allowed, but the homeowner can defeat 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||New owner does not have to give notice to former owner before going to court. Former owner is served with a notice of the court proceeding and has three to five days to respond. If former owner responds, the court schedules a hearing within two weeks. If former owner loses, the sheriff can physically move out former owner in a few days.|
|Foreclosure statutes||Colo. Rev. Stat. §§ 38-38-100.3 to 38-38-114|