How foreclosure works in Colorado

The notices you will receive in Colorado, in order

1. Notice before foreclosure with the hotline number

   Mailed by the lender or servicer at least 30 days after default and at least 30 days before it files

   This letter must give the Colorado foreclosure hotline number and the direct number for the lender's loss mitigation department. It is your signal to call a housing counselor and ask the servicer for help options in writing.

   C.R.S. § 38-38-102.5

2. Notice of election and demand

   Filed by the lender with the county public trustee and recorded, after the federal 120-day wait

   This is the paper that starts the foreclosure. Its recording date sets the first sale date, which must be 110 to 125 calendar days later for a home that is not agricultural property.

   C.R.S. § 38-38-108

3. Combined notice

   Mailed by the public trustee within 20 calendar days after recording, and again 45 to 60 calendar days before the first sale date

   One notice that covers the sale date and place, your right to cure and the lienholders' right to redeem. Find the sale date and the public trustee's sale number on it and keep it where you can reach it.

   C.R.S. § 38-38-103

4. Rule 120 notice of hearing

   Posted on your home by the lender's side at least 14 days before the hearing date

   This tells you the lender has asked a court for an order authorizing the sale. To be heard, file court form JDF 621, Verified Response to a Rule 120 Notice, and mail a copy to the lender's attorney at least 7 days before the hearing date.

   C.R.S. § 38-38-105; C.R.C.P. 120

5. Order authorizing sale

   Issued by the court after the Rule 120 hearing date, and delivered to the public trustee before the sale

   Without this order the sale is invalid. The order does not end your right to cure a payment default, so keep working on a cure or a loss mitigation application.

   C.R.S. § 38-38-105(2)

6. Published sale notice

   Published by the public trustee once a week for five weeks in a row, starting 45 to 60 calendar days before the first sale date

   The combined notice also runs in a newspaper. By the time it appears, your cure deadline is close, so count back 15 calendar days from the sale date.

   C.R.S. § 38-38-103(5)

7. Demand for possession and eviction summons

   After the sale, from the buyer

   If you are still in the home after title passes, the buyer must demand possession in writing and then file a court eviction case. The summons sets a court date 7 to 14 days after it is issued.

   C.R.S. §§ 13-40-104(1)(f), 13-40-106, 13-40-111

The legal steps in Colorado

1. Missed payments and the hotline notice

   Federal rules generally stop a servicer from starting foreclosure until you are more than 120 days behind. In Colorado the lender must also mail you a notice at least 30 days after the default and at least 30 days before filing the foreclosure. It must give the Colorado foreclosure hotline number and the direct phone number of the lender's loss mitigation department. Call both as soon as you get it.

   12 C.F.R. § 1024.41(f); C.R.S. § 38-38-102.5

2. Notice of election and demand

   The lender files a notice of election and demand with the county public trustee, and it is recorded. The first sale date is set 110 to 125 calendar days after that recording for a home that is not agricultural property. The public trustee mails you a combined notice of the sale and your rights within 20 calendar days after recording, and again 45 to 60 calendar days before the first sale date.

   C.R.S. §§ 38-38-103, 38-38-108

3. Rule 120 court hearing

   The lender must get a court order authorizing the sale. A notice of the hearing must be posted on your home at least 14 days before the hearing date. If you want the judge to hear your side, file a written response (court form JDF 621) with the court and mail it to the lender's attorney at least 7 days before the hearing date. The court says that if no response is filed, a hearing may not be held and the judge can order the sale.

   C.R.S. § 38-38-105; C.R.C.P. 120

4. Ask for help and send proof to the public trustee

   Apply to your servicer for a loan modification or other option as early as you can. If the servicer confirms in writing that it received your complete application (dated at least 37 days before the sale) or that you accepted an option, give that letter to the public trustee no later than 14 calendar days before the sale. The public trustee must then check with the lender and continue the sale while waiting for an answer.

   C.R.S. § 38-38-103.2

5. Cure the default before the sale

   You can stop the sale by catching up. File a written notice of intent to cure with the public trustee at least 15 calendar days before the sale date. The public trustee gets a cure statement from the lender, and you must pay that amount to the public trustee by 12 noon the day before the sale. You pay the missed amounts plus allowed fees and costs, not the whole loan balance.

   C.R.S. § 38-38-104

6. Public trustee sale

   The public trustee sells the home at auction, in person or online depending on the county. The lender must bid at least its good faith estimate of the home's fair market value, less certain costs and senior liens, but does not have to bid more than what it is owed. You have no right to buy the home back after the sale. Lienholders junior to the foreclosed loan have 8 business days after the sale to file a notice of intent to redeem.

   C.R.S. §§ 38-38-106, 38-38-302

7. After the sale: title and moving out

   Title passes to the buyer when all lienholder redemption periods end or, if no one files to redeem, at the close of business 8 business days after the sale. The new owner cannot simply lock you out. After demanding possession, the new owner must file an eviction case in court if you do not leave. If the home sold for more than what was owed, ask the public trustee about leftover money.

   C.R.S. §§ 38-38-501, 13-40-104(1)(f), 38-38-111

Common questions in Colorado