Colorado Foreclosure
Welcome to the Colorado foreclosure information page. Colorado uses the Deed of trust as the security instrument. In Colorado, lenders can use either the judicial or non-judicial foreclosure process. If no power of sale clause is found in the deed of trust then the judicial foreclosure process is used. This means that a lawsuit is filed in court. Once the judge rules on the foreclosure, your home will be sold to the highest bidder.
If there is a power of sale clause which is usually the case, then the non-judicial foreclosure process will be used. In Colorado, a public trustee is appointed for each county. This trustee acts an impartial party in handling the foreclosure.
The non-judicial foreclosure is handled as follows:
- An attorney for the lender files the required papers to get the process started.
- The trustee files a "Notice of Election and Demand" with the county clerk's office.
- The public sale has to take place between 45 and 60 days after this notice is filed.
- This notice must appear in a newspaper of general circulation in the county for 5 consecutive weeks.
- The trustee will also send a copy of the notice and the ad to you the borrower within 10 days.
- Within 21 days, the trustee will also send you a notice describing how you can redeem the property.
- You can stop the foreclosure process by filing an "Intent to Cure" with the public trustee at least 15 days before the house is sold at auction. You'll then have until noon of the day before the sale to come up with the money.
- After the house is sold, you still have 75 days to get your house back if you pay the foreclosure amount and the interest.
Click here to return from "Colorado foreclosure" to the "foreclosure directory".
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