If you're facing a foreclosure in Colorado, it’s important to understand some of the basics, including:
- the most common type of foreclosure procedure (judicial or nonjudicial)
- your rights and protections in the process, and
- what happens afterward (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.
Most Common Type of Foreclosure Process in Colorado
Most foreclosures in Colorado are nonjudicial under a power of sale in a deed of trust. The foreclosing party must file proof of debt ownership and the default with a public trustee, who oversees the process.
Colorado Nonjudicial Foreclosure Process in a Nutshell
Here’s a summary of the steps involved in the process:
- At least 30 days before filing a Notice of Election and Demand, and at least 30 days after the default, the borrower must be served with information about the state's foreclosure hotline, how to contact the foreclosing party's loss mitigation department, and statement that it’s illegal for anyone acting as a foreclosure consultant to charge an up-front fee or deposit for foreclosure-related services.
- After the Notice of Election and Demand has been recorded (110 to 125 calendar days before the sale date), the 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 60 days before the sale date.
- Notice of a Rule 120 motion must be mailed to the borrower and posted on the property not less than 14 days prior to the response deadline. (In a Colorado nonjudicial foreclosure, the mortgage holder has to separately get a court order in a Rule 120 proceeding authorizing the sale and then give the public trustee a copy of the order before the sale date.)
Reinstatement Before the Sale
Under Colorado law, you may reinstate until noon on the day before the sale if you file a notice of intent to cure with the public trustee no later than 15 calendar days before the sale date.
Redemption After the Sale
Redemption is available to some lienholders, but not to the borrower.
Deficiency judgments are allowed, but the borrower can raise a defense against the action if the property was sold for less than its fair market value. (To learn more, see Will I Still Owe the Lender Money After a Colorado Foreclosure?)
Finding the Foreclosure Statutes
You can find Colorado’s foreclosure laws in the Colorado Revised Statutes in §§ 38-38-100.3 to 38-38-114. (To learn how to look up foreclosure laws, see How to Find the Foreclosure Laws in Your State.)
To get details about each step in a Colorado foreclosure, see Colorado Foreclosure Laws and Procedures. Also, be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, including options to avoid foreclosure.