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Colorado Foreclosure Laws

Summary:

Judicial Foreclosure	Yes
Non-Judicial Foreclosure	Yes
Security Instruments	Deed of Trust; Mortgage
Right of Redemption	Yes
Deficiency Judgments	Yes
Time Frame	Usually 60 days

Judicial foreclosure is employed when no power of sale clause is included in the security instrument. In Colorado, the lender must sue the borrower and obtain a court order to foreclose.

The non-judicial procedure is used when a power of sale clause authorizing the lender to sell the property in the event of default is included in the loan document. The Colorado foreclosure process differs from most other states in that the Governor appoints a Public Trustee for each county.

The Public Trustee acts as an impartial third party in handling non-judicial foreclosures. The procedure is as follows:

1. The lender's attorney files the required documents with the Public Trustee who then records a notice of election and demand with the county clerk. The Public Trustee then must publish the notice of election and demand in a newspaper of general circulation in the county where the property is located for five consecutive weeks.
   
   
2. The Public Trustee must also mail a copy of the notice of election and demand and a copy of the notice of sale to the borrower at the address in the recorded security instrument within ten days of the publication. The Trustee must also, at least twenty one days before the date of sale, mail to the borrower a notice containing instructions on how to redeem the property.
   
   
3. The borrower may stop the process by filing a notice of “intent to cure” with the Public Trustee at least fifteen days prior to the sale and then bring the loan current by noon of the day before the sale.
   
   
4. The sale must take place between forty five and sixty days after the   recording of the notice of election and demand.  The Public Trustee may hold the sale at any entrance of the courthouse unless other provisions were made in the deed of trust.

Right of redemption: The borrower has seventy five days to redeem the property by paying the amount of the foreclosure sale plus interest.

Deficiency judgment: The lender may file suit to recover any deficiency balance.

Attorney General's Office
1525 Sherman Street, 5th floor
Denver, CO 80203
Ph: (303) 866-3052
Fax:(303) 866-5691

This information is to give a general idea of the foreclosure laws in each state. The information is not guaranteed to be correct. State laws can change or some errors may have been made. Please use this only as a guide.