Foreclosures: Navigating the Colorado Foreclosure Process as a Homeowner, Lender, or Buyer

In Colorado, facing the possibility of foreclosure can feel overwhelming. Colorado primarily uses a public trustee system for non-judicial foreclosures, which has its own specific procedures and timelines. Knowing your rights and the unique requirements of this system is critical for a favorable outcome. The Colorado foreclosure process is mostly non-judicial, meaning it doesn't involve court intervention and is managed by the county's public trustee. The process is defined by strict deadlines, specific documentation, and reliance on the public trustee system. Because of these unique elements, legal guidance is essential to ensure a smooth foreclosure process.

The Public Trustee’s Unique Role

Colorado's public trustee system is at the core of its non-judicial foreclosure process. The public trustee acts as a neutral third party, managing the foreclosure sale and ensuring all statutory requirements are met. Once a lender initiates the process by filing a Notice of Election and Demand (NED) with the public trustee, a series of precise deadlines begin.

For example, the public trustee must record the NED within 10 days. An initial foreclosure sale is scheduled, and a "Combined Notice" is mailed to all parties and published in a newspaper. For homeowners, these rapid-fire deadlines can make it difficult to respond effectively without prior knowledge. Missing a notice or being unaware of a timeline can severely impact your ability to act. The public trustee cannot provide legal advice, so you must navigate this complex, time-sensitive process on your own unless you have an attorney. A missed deadline, even by one day, can have irreversible consequences for your property ownership.

The CRCP Rule 120 Hearing and the Right to Cure

Colorado law also includes a judicial component called a Rule 120 hearing. This is a procedural step where a lender seeks a court order to authorize the foreclosure sale. Homeowners have a narrow window to respond to this hearing, and failing to do so can result in the court authorizing the sale.

Furthermore, a homeowner's right to "cure" the default- that is, paying all past due amounts and fees to stop the foreclosure- is also governed by strict deadlines. You must file a "Notice of Intent to Cure" at least 15 days before the scheduled sale. The public trustee then requests a "Cure Statement" from the lender, and you have a limited time to pay the amount owed. The strictness of these deadlines and procedural nuances of both the Rule 120 hearing and the cure process mean that even a determined homeowner can be tripped up by technicalities. Legal guidance is essential to successfully navigate these deadlines and processes.

How GLO Can Help

For homeowners facing foreclosure in Colorado, navigating the complex legal landscape requires informed, strategic guidance. At GLO, our experienced real estate attorneys specialize in providing the comprehensive legal support necessary to protect your rights and your home.

We offer valuable counsel at every stage of the foreclosure process, from the moment you receive a Notice of Election and Demand. Our team helps you understand the critical deadlines imposed by the public trustee system, so you are aware of every opportunity to respond. We provide guidance on your rights concerning the Rule 120 hearing and help you prepare and file the necessary responses. Crucially, GLO can assist you in exercising your fundamental right to cure the default, meticulously calculating the precise amount needed and guiding you through the strict statutory deadlines for payment. We also provide clear advice on post-foreclosure scenarios, including your rights as an occupant. By partnering with GLO, you gain a knowledgeable advocate who can demystify the complexities of Colorado foreclosure law, identify potential defenses, and work diligently to secure the best possible outcome for your home and your financial future.

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GLO has prepared this blog to provide general information on legal issues that may be of interest. This blog does not provide legal advice for any specific situation and this does not create an attorney-client relationship between any reader and GLO or its attorneys. GLO engages clients only through specific signed fee agreements. GLO does not guarantee any results.

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