Colorado Foreclosure Laws

Colorado foreclosure laws use the non-judicial method, which means a defaulted property can be foreclosed without the decision of the Supreme Court. However, this type of foreclosure requires the filing of a notice-in this case, the notice is called election to foreclosure. One difference of the Colorado foreclosed homes compared to the laws of the other states is that it requires the lender's trustee to be part of the Office of Public Trustee of the local government, instead of simply being anyone named by the lender.

The non-judicial foreclosure, as stated in the Colorado foreclosure laws, can only be invoked if the deed of trust contain of provision called the power of sale, which is clause that allows the lender and his trustee to foreclosure a property upon default. To invoke the power of sale, the Notice of Election and Demand should be filed in the county where the foreclosed property is located. Ten days after the notice is filed, it should then be recorded. The recorded notice should be published for five consecutive weeks, at least once per week. Furthermore, the notice should also be mailed to the borrower 20 days after the publication.

After this, the Colorado foreclosure laws allow the trustee to conduct the sale 45 days to 65 days after the notice was filed. Despite following a non-judicial method, the concerned people should go through a procedure called a Rule 120 hearing to determine the legal basis of the foreclosure. However, if the borrower does not respond to the notice, the hearing becomes unnecessary.

Although the Colorado foreclosure laws provide borrowers with a right of redemption, the timeframe of this only lasts for 75 days. However, the borrower can arrange a payoff with the lender by submitting a notice of intent to redeem. This should be done before the last 15 days of the redemption period; otherwise, the right is forfeited.