Colorado Foreclosure Law

Colorado foreclosures law acknowledges both judicial and non-judicial foreclosure. In Colorado State timeline of process period is usually of 60 days. Colorado foreclosure law relay on the deed of trust and mortgage as primary security instruments. Colorado foreclosure law permits right of redemption. Deficiency Judgments are also allowed by Colorado foreclosure law.

Regardless, which foreclosure procedure is adopted either judicial or non-judicial, lender in Colorado State may foreclose on deeds of trusts or mortgages in case default occurs.

Judicial Foreclosure
The judicial foreclosure process allows the lender to file a lawsuit to obtain a court order to foreclose The Judicial foreclosure process is generally used when “no power of sale clause” is there in the mortgage or deed of trust. A “power of sale clause” in a deed of trust or mortgage empowers lender to sale or transfer of land as summarized by the terms of that clause.

Non-Judicial Foreclosure
Non-Judicial Foreclosure allows the lender to sell the property and pay off the balance of the loan in case the borrower defaults. Non-judicial process of foreclosure is used when deed of trust or mortgage document contains “a power of sale clause”. The power to sell given to the lender may be carried out by the lender or their representative, typically referred to as the trustee. “Power of Sale Foreclosure Procedure” explained below will elucidate the genuine method for Non-Judicial foreclosure process.

Power of Sale Foreclosure Procedure
In Colorado State the foreclosure process is bit different than in other states as here, for each states county governor appoints a “Public Trustee”. While handling a power of sale foreclosure trustee act as an impartial party.
In Colorado state non-judicial power of sale foreclosure may be carried out by using the following steps:

• The process starts as a result of filling the required documents with the Office of the Public Trustee of the county where the property is located by the attorney representing the lender.

• Next to it The Public trustee files a “Notice of Election and Demand” with the county clerk and recorder of the county.

• Once record, the notice must be published for (5) successive weeks in a newspaper where the property sited.

• Public Trustee must mail a copy of the “notice of election and demand for sale” and a “notice of sale” as published in the newspaper, to the borrower and/or any owner or applicant of record within ten (10) days after the publication f the notice of election and demand for sale at the address given in the recorded instruments.

• Before the foreclosure sale  notice regarding the redemption of property must also be mailed by trustee not less than sixteen (16) or more than twenty-five (25) days after the entry of a announcement of foreclosure.

• “Intent to cure” may be filled by the owner of property with the Public Trustee’s office at least fifteen (15) days prior to the foreclosure sale to stop the foreclosure proceedings.

• Owner may pay necessary amount to pay off loan by the noon till the scheduled foreclosure.

• After recording of the election and demand for sale the foreclosure sale must be carried out between forty-five (45) and sixty (60) days.

• If specified in the deed of trust, the Public Trustee may hold the sale at any entrance to the courthouse.

After the sale borrower has 75 days to redeem by paying sale amount including interest due.
The lender has the opportunity of filling deficiency suit.