Foreclosure Process Overview
Colorado allows for both judicial (in-court) and non-judicial (out-of-court) foreclosure proceedings. Managed by a public trustee, the non-judicial foreclosure process is the most common, taking about six months. Judicial foreclosures, on the other hand, are not commonly used in Colorado.
The public trustee for each county is either appointed by the governor or elected by the public. The non-judicial foreclosure process begins when a lender files the appropriate documents with the public trustee to request a sale of the property. Once the public trustee officially records the foreclosure action, a foreclosure sale can be scheduled.
After the sale is scheduled, the lender still has to obtain a separate court order allowing the sale. The court schedules a hearing to consider the matter, and all affected parties are notified. If no one contests that the borrower is in default, the court allows the sale without a hearing.
If the borrower plans to pay off the default and stop the foreclosure, he or she needs to submit notice of his intention to do this to the public trustee at least 15 days before the sale. If this is done, the borrower can pay off the default and stop the foreclosure process up until noon of the day before the sale.
Notice of Sale / Auction
The public trustee schedules the sale 110 to 125 days after the initial foreclosure action was recorded. The notice of sale is published in a local newspaper for 12 weeks. The public trustee also mails a copy of the notice to the borrower.
The public trustee typically conducts the sale at the courthouse. At the sale, the public trustee reads the written bid submitted by the lender, and any party may bid. If anyone other than the lender is the winning bidder, that person must deliver the amount bid in cash – or by cashier’s check – to the public trustee. The winning bidder is given a certificate of purchase.
There is no longer any redemption period for the previous owner after a foreclosure sale in Colorado.
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