Colorado Foreclosure Law

[Moe]

- Judicial Foreclosure Available: Yes

- Non-Judicial Foreclosure Available: Yes

- Primary Security Instruments: Deed of Trust, Mortgage

- Timeline: Typically 60 days

- Right of Redemption: Yes

- Deficiency Judgments Allowed: Yes

In Colorado, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

Power of Sale Foreclosure Guidelines

The foreclosure process in Colorado is quite a bit different than in other states because here, the governor appoints a "Public Trustee" for each county in the state. The trustee must act as an impartial party when handling a power of sale foreclosure. In

Colorado, the non-judicial power of sale foreclosure is carried out as follows:
The process begins when the attorney representing the lender files the required documents with the Office of the Public Trustee of the county where the property is located. The Public Trustee then files a "Notice of Election and Demand" with the county clerk and recorder of the county. Once recorded, the notice must be published in a newspaper of general circulation within the county

where the property is located for a period of five (5) consecutive weeks.
The Public Trustee must also mail, within ten (10) 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 twenty-one (21) days before the foreclosure

sale, a notice to the borrower describing how to redeem the property.
The owner of the property may stop the foreclosure proceedings by filing an "Intent to Cure" with the Public Trustee's office at least fifteen (15) days prior to the foreclosure sale and then paying the necessary amount to bring the loan current by noon the day
before the foreclosure sale is scheduled.

The foreclosure sale must take place between forty-five (45) and sixty (60) days after the recording of the election and demand for sale with the county clerk and recorder. The Public Trustee may hold the sale at any entrance to the courthouse, unless other provisions were made in the deed of trust.

The lender has the option to file a suit for deficiency in Colorado and the borrower has up to seventy five (75) days after the sale to redeem the property by paying the foreclosure sale amount, plus interest.

More information on Colorado foreclosure laws.

source http://www.foreclosurelaw.org/Colora...losure_Law.htm

Colorado Foreclosure Laws

Colorado Foreclosure is Non-Judicial.

Notice of Sale

Colorado foreclosure law states that the public trustee, within twenty days after the date of the first publication of the notice of sale, shall mail a copy of such notice as it appeared in a newspaper of general circulation to the grantor at the address given in the deed of trust, and the public trustee shall also mail a like notice to each person who appears to have acquired a record interest in the property described in such notice of sale subsequent to the recording of such deed of trust, whether by deed, mortgage, judgment, or any other instrument of record, and, if the foreclosing party has a lien with priority over the lessee or lessees who have unrecorded possessory interests in the property being foreclosed and desires to terminate such possessory interests with the foreclosure, as evidenced by the inclusion of the names of the lessee or lessees or the occupant or occupants in the list supplied the public trustee pursuant to subsection (1) of this section, the public trustee shall also mail such a notice to the lessee or lessees of the premises.

Such notice shall be mailed to such person at the address given in the recorded instrument, or, if such notice is being sent to the lessee or lessees of the premises, such notice shall be mailed as provided in section 38-38-305 (1.5). Postage costs under this section shall be part of foreclosure costs. If such recorded instrument does not give such address or if only the county and state are given as the address of such person, it will not be necessary to mail any notice to such person. It is not necessary to mail a copy of said printed notice to any person whose interest does not appear of record at the time said notice of election and demand for sale is recorded.
Announcement at public trustee's sale.

Colorado foreclosure law states that at any foreclosure sale by a public trustee, the public trustee shall be required to read only the public trustee's number of the proceeding for the sale, the name of the grantor, the street address, if known, and legal description of the property, the name of the owner of the evidence of debt, the date of the sale, the date on which the notice was issued, and the first and last publication dates of the notice. In lieu of reading the legal description, the public trustee may display the legal description to those present at the sale.

Combined notice of right to cure and right to redeem
Colorado foreclosure law states that within twenty days after the recording of the notice of election and demand for sale by the public, or not less than sixteen nor more than twenty-five days after the entry of a decree of foreclosure or the issuance of a writ of execution directing the sheriff to sell real property, the public trustee or sheriff shall mail a notice to the grantors of the deed of trust or mortgage being foreclosed, to any subsequent owners of the property being foreclosed, to the current owner of the property being sold, and to any other person having a right to cure a default or a right to redeem the property subject to foreclosure Such notice shall contain:

• 1. The names of the grantors of the deed of trust or mortgage and the original beneficiaries or grantees thereof;
• 2. The name of the current owner of an evidence of debt secured by the deed of trust or mortgage being foreclosed or the owner of the lien being foreclosed;
• 3. A statement that the notice of intention to redeem shall be filed at least fifteen calendar days prior to the end of the owner's redemption period;
• 4. A statement that the notice of intent to cure shall be filed at least fifteen calendar days prior to the date upon which the foreclosure sale is set; and
• 5. The names, addresses, and telephone numbers of the attorneys, if any, representing the foreclosing lienor.

The combined notice required shall be mailed to those persons who have a right to cure or redeem pursuant to an instrument evidencing such right which was recorded with the county clerk and recorder of the county in which said property is located subsequent to the recording of the deed of trust, mortgage, or other lien being foreclosed and prior to the recording of the notice of election and demand for sale or notice of commencement of the pending foreclosure action (lis pendens). Such combined notice shall be mailed to such persons at their respective addresses shown in the recorded instruments through which their rights to cure or redeem are derived. Postage costs under this section shall be part of the foreclosure costs.
Court order authorizing sale mandatory.

In all cases of foreclosure of property by the public trustee pursuant to a power of sale contained in a deed of trust, the owner of an evidence of debt secured thereby shall obtain an order authorizing sale from a court properly having jurisdiction to issue the same. Such order shall be dated, or recite that the hearing was completed, on or before the day prior to the last day on which an effective notice of intention to cure may be filed with the public trustee. In no event shall the public trustee sell the subject property prior to the issuance of such an order authorizing the sale.
Written bid required - form of bid.

The owner of an evidence of debt secured by a deed of trust, mortgage, or other lien being foreclosed in accordance with the provisions of this article and article 37 of this title, or the attorney or agent for such owner or holder, shall submit, before 12 noon on or before the day prior to the date of sale, a written bid to the public trustee or sheriff as provided in this section. The owner of such evidence of debt shall bid at least such owner's good faith estimate of the fair market value of the property being sold (less the amount of unpaid real property taxes and all amounts secured by liens against the property being sold which are senior to the lien being foreclosed and less the estimated reasonable costs and expenses, net of income, of holding, marketing, and selling such property); except that such owner need not bid more than the amount due under such evidence of debt as itemized on the written bid pursuant to subsection

(2) of this section. The failure of the owner of such evidence of debt to bid at least such owner's good faith estimate of the fair market value of the property being sold shall not affect the validity of such foreclosure sale but may be raised as a defense by any person sued on a deficiency. Such owner or his attorney or agent need not personally attend the foreclosure sale. If such written bid is not timely submitted, the public trustee or sheriff shall continue the sale no longer than two weeks and shall announce the continuance at the time and place designated for the sale.

• 1. Any written bid submitted to the public trustee or sheriff shall be signed by such owner or by the attorney for such owner and shall set forth an itemization of all amounts due under the evidence of debt and deed of trust, mortgage or other lien being foreclosed, and all costs and expenses allowable by the evidence of debt, deed of trust, mortgage, or other lien being foreclosed, reasonable attorney fees, and costs incurred by such owner or the attorney for such owner in enforcing the owner's lien or in defending, protecting, and insuring the owners interest in the foreclosed property or any improvements located thereon
  The public trustee or sheriff shall enter such bid by reading the bid amount set forth on the written bid and the name of the person or entity who submitted such bid.

Bids submitted pursuant to this section may be withdrawn or amended by any person authorized to submit a bid in writing, prior to the date specified in said subsection or orally, at the time of sale. If a bid is modified orally at the time of sale, the person making such bid shall immediately note such modification on the written itemization thereof and re-execute same.
Fees charged against grantor.

All fees, charges, and costs of every kind and nature incurred under the provisions of articles 37 to 39 of this title shall be an expense of the foreclosure sale chargeable as additional amounts owing under the deed of trust, mortgage, or other lien being foreclosed. Such amounts shall be deducted from the proceeds of any foreclosure sale, or, if there are not cash proceeds at such sale adequate to pay such amounts, to the extent of such inadequacy, such amounts shall be paid by the owner of the evidence of debt secured by the deed of trust, mortgage, or other lien being foreclosed.

The public trustee or sheriff may require that the owner of the evidence of debt secured by the deed of trust, mortgage, or other lien to be foreclosed deposit with the public trustee or sheriff at the time the notice of election and demand for sale is filed with the public trustee or the time the order of foreclosure is delivered to the sheriff a deposit of three hundred dollars, which shall be applied against the fee and expenses of the public trustee or sheriff described in this section.
Date of foreclosure sale.

Whenever property is to be sold by virtue of the foreclosure of any mortgage, deed of trust, or other lien, whether through the public trustee or through court, the date fixed for such sale shall be:

• 1. In the case of a sale by the public trustee, not less than forty-five days nor more than sixty days, or such longer period as provided in the deed of trust, after the date of recording of the notice of election and demand; and
• 2. In the case of a foreclosure through the court, not less than forty-five days after the date of commencement of the action to foreclose.
  In case of a publication of an erroneous notice of sale in connection with a public trustee foreclosure, the sale may be postponed to a date subsequent to the expiration of the sixty-day period prescribed in subsection of this section but in no event to a date later than thirty days after the fifth correct publication of the corrected notice of sale.

source http://www.foreclosureuniversity.com...s/colorado.php

[Moe]

Changes in Colorado law concerning foreclosures

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January 2, 2008 - 11:13PM



As rate increases under adjustable rate mortgages continue to kick in and the housing market continues to stumble, it’s predictable that 2008 will be another banner year for foreclosures. In the unfortunate event 2008 brings a foreclosure your way, you should know about important changes in Colorado law that apply to foreclosures filed after Jan. 1. To understand the significance of these changes, it helps to look at how the system works for foreclosures filed before Jan. 1.

For pre-January foreclosures, an owner of property in foreclosure has two important rights — a right to cure the default that gave rise to the foreclosure and a right to redeem the property after the foreclosure sale takes place.

To cure a default, a property owner must come up with all past-due installments and late charges, together with the costs (largely attorneys fees) incurred by the lender in bringing the foreclosure. If a cure is in fact accomplished, the foreclosure is canceled and the property owner’s right to continue to repay the loan in installments is reinstated.

A cure must take place before the foreclosure sale is held. For pre-Jan. 1 foreclosures, the law required a sale date to be set no sooner than 45 days and no later than 60 days after the foreclosure process began.

Once the foreclosure sale occurs, the right to cure ends and the right to redeem kicks in. Under the old law, the right to redeem lasts for 75 days after the sale, unless the property is agricultural. Then, the right continues for six months after the sale (thereby allowing the next crop to be harvested, the farm animals to have offspring, etc.).

Redemption, unlike cure, requires payment of the entire amount that is bid at the foreclosure sale, which will usually be the entire amount of the loan. For that reason, about the only way to pull off a redemption is to sell the property, accomplish a miracle refinancing, bag a timely inheritance or win the lottery.

The new law, in recognition of the fact that owner redemptions have been few and far between, has done away this right. As a trade-off, however, the period of time in which a cure can be accomplished has been extended.

Under the new law, for nonagricultural property, a sale date will be set no sooner than 110 days and no later than 125 days after the commencement of the foreclosure. For agricultural property, a sale date will be set no sooner than 215 days and no later than 230 days after the commencement of the foreclosure.

In effect, then, the cure period for nonagricultural property has been extended by 65 days and for agricultural property by 170 days. But, if the owner is unable to cure, the game is over. The owner will have only a couple of weeks after the sale to pack and move out, or be subject to eviction as a trespasser.

Under the new law, as with the old law, struggling borrowers should remember good communication with their lender is important.

For a variety of reasons (rarely having to do with kindness), most lenders don’t like to foreclose, and they are often willing to work with borrowers to help them dig out of their hole.

In fact, as a consequence of the mortgage mess that is pulling down the economy, lenders are under considerable pressure from regulatory agencies to look for opportunities to work things out. The worst thing a defaulting borrower can do is ignore the lender.


source http://www.gazette.com/articles/fore..._property.html

[CantCatchABreak]

As I understand it, the new Colorado foreclosure laws beginning in 2008 establish a 110-125 day period for foreclosure, with no redemption period.

My question is this: does the "power of sale" clause in a deed of trust change this new timetable?

[CantCatchABreak]

As I understand it, the new Colorado foreclosure laws beginning in 2008 establish a 110-125 day period for foreclosure, with no redemption period.

My question is this: does the "power of sale" clause in a deed of trust change this new timetable?

[Cat Damiano]

Here is the new points of the new Colorado foreclosure law compared side by side with the old law highlighting the main differences.

Hope this helps answer your question........

http://www.ltgc.com/lenders/technica..._jan08_web.pdf

[CantCatchABreak]

Thanks for the link. It was exactly what I was looking for.

As you know, there is so much out-dated info on the web.

[Cat Damiano]

You are welcome........

I know what you mean.........our law was updated in January and other sites are showing the old law which still looks like you have the 75 day right of redemption, which we don't.........