When looking for answers to your questions about foreclosure in Colorado and your rights as a homeowner, you should first look to Colorado's foreclosure statutes. Below you’ll find directions on finding those statutes and a summary of what you will find in them.
Finding Colorado's Foreclosure Laws
Colorado's foreclosure laws are located in the Colorado Revised Statutes Sections 38-38-100.3 to 38-38-907. To find these statutes on-line, follow these steps:
- Start on the Colorado page of the Michie’s Legal Resources website: www.michie.com/colorado.
- Click to open the folder icon next to "Colorado Revised Statues."
- Click the second "Colorado Revised Statues” in the menu on the left.
- Click "Title 38 Property-Real and Personal” in the menu on the left.
- Click "Real Property” in the menu on the left.
- Click "Mortgages and Trust Deeds” in the menu on the left.
- Click "Article 38 Foreclosure Sales" in the menu on the left
In the right pane of your window, you will see the sections of Colorado’s foreclosure statute listed in numerical order. Each section has a short heading describing its contents. You can click on any section and read it in detail.
Summary of Colorado's Foreclosure Laws
After seeing how lengthy and complex Colorado’s foreclosure statute is, you may be overwhelmed. But don't despair. We have highlighted and summarized the most relevant sections below.
Nonjudicial Foreclosure
The most common method of foreclosure in Colorado is nonjudicial foreclosure. The foreclosure process is governed by a public official called a public trustee. Col. Rev. Stat. §§ 38-37-104, 38-38-906.
A lender seeking to foreclose outside of court must first file a notice of election and demand along with proof of the debt with the county public trustee's office in the county where the property is located. Then, within ten business days, the public trustee will record the notice in the county's property records. Col. Rev. Stat. §§ 38-38-101 and 102. The public auction sale date will be between 110 days and 125 days from the day that the public trustee records the notice of election and demand. Col. Rev. Stat. § 38-38-108. The lender must have a court confirm the lender's right to foreclose upon the property and to sell the property at public auction. Col. Rev. Stat. § 38-38-105.
Notice Requirements
There are several notice requirements, as follows:
- At least 30 days before filing the notice of election and demand, and at least 30 days after default on the loan, the lender must provide written notice to the borrower of the telephone number for Colorado's foreclosure hotline and the contact information for the lender's loss mitigation representative. Col. Rev. Stat. § 38-38-102.5.
- Within 15 days from the lender's filing of its notice of election and demand, the lender must provide the borrower with written notice of the borrower's possible right to defer the foreclosure sale. Col. Rev. Stat. § 38-38-802.
- Within 20 days from the date the Public Trustee records the notice of election and demand, and again between 45 and 60 days prior to the date of sale, the public trustee must send written notice of the foreclosure to the borrower and other persons with an interest in the property. This notice must include information regarding the borrower's right to cure and the date, place, and time of the sale. Col. Rev. Stat. § 38-38-103.
Right to Cure
The borrower can stop the foreclosure by paying the total amount due including any costs or fees incurred by the lender in filing the foreclosure. The borrower must file a notice of intent to cure at least 15 days prior to the date of sale. The borrower must then pay the total amount due to the public trustee before noon on the day before the sale. Col. Rev. Stat. § 38-38-104.
Right to Defer Foreclosure
A homeowner may be able to postpone the foreclosure sale for up to 90 days. During that time, the lender and the homeowner are required to negotiate a loan modification. This law is currently set to expire on June 30, 2014. Col. Rev. Stat. §§ 38-38-801 to 808.
Deficiency Judgment
If the property sells for less than the total amount owed, the lender may sue the borrower for the difference. If the borrower can convince the court that the lender bid less than the property's fair market value at the public auction, then the borrower might be able to avoid a deficiency judgment. Col. Rev. Stat. § 38-38-106.
Right of Redemption
In 2007, the Colorado legislature abolished the borrower's right to redeem formerly found in Col. Rev. Stat. § 38-38-303. For foreclosure actions filed on or after January 1, 2008, the borrower has no right to redeem the property after the sale of the property.
