Colorado Foreclosures: New and Improved Rule 120 Hearing

Colorado homeowners are now permitted to raise additional issues at a Rule 120 hearing to fight a nonjudicial foreclosure.

Colorado foreclosures are generally considered nonjudicial, with a public trustee administering the process. As part of a Colorado nonjudicial foreclosure, though, a court must hold a hearing and issue an order authorizing the foreclosure sale. This hearing, which is required by Rule 120 of the Colorado Rules of Civil Procedure, is commonly called a “Rule 120 hearing.”

In the past, a borrower facing foreclosure was permitted to bring up only two issues at a Rule 120 hearing: whether the loan was actually in default, and whether the borrower was in the military and entitled to protections under the Servicemembers Civil Relief Act (SCRA). Rule 120 of the Colorado Rules of Civil Procedure recently changed, however, to expand the scope of the issues that a borrower may raise at a Rule 120 hearing.

Now, a borrower facing foreclosure may also raise the following matters at a Rule 120 hearing, if applicable, to challenge the foreclosure:

These changes provide Colorado homeowners facing a nonjudicial foreclosure an expanded opportunity to go in front of a court and explain why the foreclosure should not go forward—so long as the reason is based one of the four specified matters.

If you want to dispute a nonjudicial foreclosure in Colorado on grounds that are within the limits discussed above, you have to file a written response with the court and serve it to the foreclosing party within certain deadlines. You also have to go to the Rule 120 hearing. Keep in mind that making a legal argument is complicated and ensuring you follow proper court procedures can be difficult. If you want to fight a nonjudicial foreclosure through a Rule 120 hearing, consider hiring a foreclosure attorney to help you.

Effective date: March 1, 2018