Redemption and Deficiency Judgments in Colorado
Whether you can buy back your home after a foreclosure sale in Colorado, and whether the lender can sue for what's still owed.
Short answer: Colorado's foreclosure redemption statutes give redemption rights to junior lienors (who must file a notice of intent to redeem within eight business days after the sale), not to the owner. C.R.S. §§ 38-38-302, 38-38-501; Gilpin County Public Trustee, The Foreclosure Process
| Redemption after the sale | Colorado's foreclosure redemption statutes give redemption rights to junior lienors (who must file a notice of intent to redeem within eight business days after the sale), not to the owner. A county public trustee states that foreclosures started in 2008 and later do not allow owner redemptions. If no lienor redeems, title vests in the certificate holder at the close of business eight business days after the sale. |
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| Deficiency judgments | Possible. The lender's sale bid form includes a line for any deficiency, and the lender must bid at least its good-faith estimate of the property's fair market value (minus senior liens, unpaid taxes and estimated holding and selling costs), unless the debt is lower. A lender's failure to bid that amount does not invalidate the sale, but anyone sued for a deficiency may raise it as a defense. The statute reviewed does not set a separate deadline for filing a deficiency suit. Source: C.R.S. § 38-38-106 |
More Colorado foreclosure & homeowner law
- How Foreclosure Works in Colorado
- HOA Liens and Foreclosure in Colorado
- Getting Your Home Back After a Tax Sale in Colorado
- All Colorado foreclosure & homeowner law rules
FAQ
Is there a right of redemption after foreclosure in Colorado?
Colorado's foreclosure redemption statutes give redemption rights to junior lienors (who must file a notice of intent to redeem within eight business days after the sale), not to the owner. A county public trustee states that foreclosures started in 2008 and later do not allow owner redemptions. If no lienor redeems, title vests in the certificate holder at the close of business eight business days after the sale.
Can the lender come after you for the rest of the loan after foreclosure in Colorado?
Possible. The lender's sale bid form includes a line for any deficiency, and the lender must bid at least its good-faith estimate of the property's fair market value (minus senior liens, unpaid taxes and estimated holding and selling costs), unless the debt is lower. A lender's failure to bid that amount does not invalidate the sale, but anyone sued for a deficiency may raise it as a defense.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.