Colorado Foreclosure Laws

Foreclosure Laws in Colorado

Foreclosures in Colorado can occur through both judicial and non-judicial proceedings, but the most common process aspects of both. In this process, a publicly appointed trustee handles a foreclosure sale without the oversight of a court.

The process for foreclosure begins when a lender files documents with the public trustee outlining the homeowner's default. The public trustee is appointed usually by county officials or the state governor, and is appointed to settle foreclosure disputes. Once the public trustee reviews the documents, they will schedule a date for the foreclosure sale of the property.

Once the sale is scheduled, it's up to the lender to obtain a court order sanctifying the foreclosure. A hearing will be held once the lender registers the request, and if the court finds that the borrower is indeed in default, the foreclosure can proceed as scheduled.

If the homeowner does decide that they will be able to pay off the debt and wishes to do so to avoid a foreclosure, they must submit a written statement of their intention to do so at least 15 days prior to the scheduled sale date of the home. Once the homeowner has done so, they can pay off their debt anytime up until noon on the day before the sale, thus halting the foreclosure and canceling the sale.

The public trustee will generally schedule the sale for anywhere from 45-60 days after the lender registers default. The trustee will serve the homeowner with a copy of the Notice of Sale, and will arrange to have also it published in a local newspaper for 5 weeks.

The sale is held at the county courthouse, and anyone can bid. Once a winning bidder is established, that person must immediately pay the public trustee for their bid by cash or cashier's check, unless the winning bidder is the lender. Once the sale completes, the winning bidder is awarded a Certificate of Sale.

After the sale, the original homeowner is allowed a 75 day period of redemption, during which they can regain control of their property by paying the entire sale price of the property, plus interest and any applicable costs. If this period goes by without event, the public trustee transfers ownership of the property to the winning bidder.