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 homeowner’s 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 days before first scheduled sale date), public trustee must mail a combined notice to the homeowner within 20 days after the recording date. Trustee must mail notice again between 45 and 65 days before first scheduled sale date. The combined notice mailed by the public trustee must include information about how to file a notice of intent to cure.

Reinstatement of loan before sale

Available 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

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

Deficiency judgments

Allowed, but the homeowner 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 lender must make a demand for possession. If the borrower does not vacate, then the lender files the lawsuit to evict. The court will issue a summons commanding the borrower to appear before the court at the time and place stated in the summons. The court date will be not less than 7 days and not more than 14 days from the date the summons was issued.

Foreclosure statutes

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

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