Colorado
When you develop a definite plan of action with
well-timed, well-informed steps, you can stop
the foreclosure process and save your home. We
have outlined the foreclose process for the
state of Colorado.
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: Yes
Public Trustee - A Colorado Concept
In contrast to most states, where the trustee is
usually the hired gun of the lender, Colorado
has an impartial, accountable, "public
trustee" appointed by the Governor for each
county, who handles power of sale foreclosures
on request. The public trustee may take only the
compensation set by law. A private lender
engages a public trustee by filing with the
trustee two copies of a notice of election and
demand for sale, the original note or a suitable
bond and a mailing list of persons who must
receive foreclosure notices.
Non-judicial Foreclosure
Preliminary Notices
Advertising
A notice of sale stating the time and place of
the foreclosure must be advertised in accordance
with the terms of the deed of trust, but under
Colorado law all deeds of trust must prescribe a
weekly advertising period for the notice of sale
in a newspaper of general circulation, of not
less than four weeks.
Recording
The public trustee must record the lender’s
notice of election and demand for sale.
Mailing
The public trustee must mail, within ten days
after the publication of the notice of election
and demand for sale, a copy of the same and a
notice of sale as published in the newspaper, to
the borrower and any owner or claimant of
record, at the address given in the recorded
instrument. The public trustee must also mail,
at lease 21 days before the foreclosure sale, a
notice to the borrower describing how to redeem
the property.
Right-to-Cure Default
If the loan default is due to nonpayment, then
the borrower can give notice of an intention to
cure the default at least seven days before the
foreclosure sale. The trustee must then, on
request, investigate and tell the borrower the
sum due on the loan. If, on or before 12:00 noon
of the day before the date of the sale, the
owners, parties or borrowers pay to the officer
conducting the sale all delinquent principal and
interest payments that are due as of the date of
such payment, plus costs, expenses, late charges
and attorney’s fees, but not future principal
(since no extra debt is allowed due to
acceleration) then the foreclosure must be
stopped. This right my be exercised more than
one time.
Sale Procedures
Date
The foreclosure sale must be held between 45
days and 60 days after the recording of the
election and demand for sale.
Place
The public trustee may conduct the sale at any
door or entrance to a courthouse, not
withstanding the deed of trust’s provisions,
or the trustee may conduct the sale at the
location specified in the deed of trust.
Post-Sale Matters
The trustee will pay an excess proceeds from the
foreclosure sale to creditors in order of their
priority, and the balance to the grantor, who
has five years to claim it. Title is conveyed by
deed to the higher bidder, who may be the
lender.
Deficiency
The lender may sue for a deficiency.
Redemption
The borrower has 75 days after the date of sale
to redeem the premises by paying the public
trustee the sum for which the property was sold,
with interest. A variety of redemption periods
exists for junior lien holders. Special rights
exist in the case of agricultural borrowers.
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