Summary of Colorado's Foreclosure Laws

If you're facing a foreclosure in Colorado, you should 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, like whether you'll be liable for a deficiency judgment.

Below we have outlined some of the most critical 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 holder must mail the borrower information about the state's foreclosure hotline, how to contact the foreclosing party's loss mitigation department or representative, and a 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, which happens 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.

For a more detailed description of the process, see Colorado Foreclosure Laws and Procedures.

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

Deficiency judgments are allowed, but the borrower can raise a defense against the action if the foreclosing party bid less than the property's fair market value at the foreclosure sale.

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. Statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consult with an attorney if you're facing a foreclosure.

More Information

For more information, consider contacting a local foreclosure lawyer. A foreclosure lawyer can advise you about foreclosure procedures, potential defenses you might have to the foreclosure, and let you know whether you should consider filing your own lawsuit to fight the action.

If you can't afford an attorney, you might be eligible to get help from a legal aid organization.

It's also a good idea to contact a HUD-approved housing counselor to get information about different loss mitigation options.