What is the timeline for foreclosure in Colorado?

If you are struggling to make your mortgage payments, or have already missed a couple you should educate yourself about the Colorado foreclosure timeline and the steps that happen during the process. The first thing you should be aware of is that the initial part of the timeline can be different depending on whether you have an FHA loan or a conventional mortgage loan. If you are not sure which type you have, pull out your original paperwork because it will tell you right on the Deed of Trust which type of loan you have.

• If you have an FHA loan, you have to miss three payments before your lender can foreclose, but they are allowed to begin the process before you miss your third payment.
• If you have a conventional mortgage loan, your lender is allowed to begin the foreclosure process after you miss just one payment (and it stays unpaid for 30 days) although the reality is that few will exercise that option before two or three payments are missed.

Once your lender decides to foreclose and sends notice of this to the Public Trustee in the county where you purchased your house, the Public Trustee has ten business days to file what is called the "Notice of Election and Demand", also known by the acronym NED.

From the date that the NED, the foreclosure sale is scheduled between 110 and 125 days. During that approximate four month time frame, the mortgagees will be notified formally of the sale and given the opportunity to "cure" the debt. Curing the debt will include not only making up all the missed payments but also any late fees, delinquency fees, and attorney fees.  You will be told the exact amount about a week before the scheduled sale if you file an Intent to Cure form with the Public Trustee no later than 15 days before the sale is scheduled. You then have to submit the payment to the Public Trustee in certified funds by noon the day before the sale.

If you have questions about the foreclosure process, or believe you are being foreclosed on wrongfully seek the advice of an attorney as soon as possible. You should be receiving notices from your lender for about three to four months before they actually begin filing paperwork with the Public Trustee, so don't wait. Contact an attorney immediately so you can learn what options you may have to avoid foreclosure.