Real Estate Q&A: What is the Foreclosure Process in Colorado?
Generally, the Lienholder will wait until the borrower is 3-4 months behind in payments before filing a Foreclosure. Colorado Revised Statute 38-38-101 requires the lienholder to initiate the Foreclosure process with the appropriate documentation submitted to the Public Trustee from the respective county.
After receiving the documents, the Public Trustee files the Notice of Election and Demand (NED). This is a public document announcing the commencement of the Foreclosure. The NED is mailed to the homeowner (and any potential tenants of the property). It will also be published in the local newspaper. The NED provides the homeowner with information regarding the lienholder’s Foreclosure Attorney and the Foreclosure Sale Date.
A residential homeowner has a least 110 calendar days before the Foreclosure Sale date. Agricultural property has 215 days. During this timeframe the property owner may come current on the loan and cure the default or they can sell the property to mitigate the loss to the lienholder.
If the homeowner wishes to cure the loan or sell the property, they must file their Intent to Cure documentation in a timely manner to avoid the Foreclosure Sale.
During the Pre-Foreclosure period (prior to the Foreclosure Sale date), the homeowner will receive notice of a Rule 120 hearing. If the Foreclosure has been filed in error, the homeowner has the opportunity to challenge the Foreclosure at this hearing.
Following the Foreclosure Sale, the homeowner will be evicted from the property if they have not already vacated the property.
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