How Foreclosure Works in Colorado

Both, with a court step. Most deeds of trust are foreclosed through the county public trustee: the lender files a notice of election and demand with the public trustee, which then sells the property. Even in a public trustee foreclosure, the lender must get a court order authorizing the sale under Colorado Rule of Civil Procedure 120, or the sale is invalid. Liens may also be foreclosed in court, with the sheriff conducting the sale.

For a residential mortgage default consisting of missed payments, at least 30 days after default and at least 30 days before filing the notice of election and demand, the lender must mail the borrower a notice with the Colorado foreclosure hotline number, the lender's loss-mitigation contact, and a statement that foreclosure consultants may not charge up-front fees. After the notice of election and demand is recorded, the public trustee mails a "combined notice" of the sale, right to cure and right to redeem within 20 days, and again 45 to 60 days before the first scheduled sale; the notice is also published once a week for five consecutive weeks starting 45 to 60 days before the sale. The combined notice tells borrowers they may complain to the Colorado Attorney General or CFPB about single-point-of-contact or dual-tracking violations.

For non-agricultural property sold by the public trustee, the first sale date must be no less than 110 and no more than 125 calendar days after the notice of election and demand is recorded (no less than 110 days after the lis pendens for a sheriff's sale). For agricultural property, the window is 215 to 230 days (public trustee) or at least 215 days (sheriff).

Yes. When the default is nonpayment, the owner (and certain others, such as people liable on the debt and junior lienors) may cure by filing a written notice of intent to cure with the public trustee or sheriff no later than 15 calendar days before the sale date. The officer then obtains a cure statement from the lender showing the amount needed. A Colorado county public trustee explains that the cure must be paid in cash or cashier's check by noon the day before the sale. A deed of trust cannot waive or shorten the right to cure.