Colorado Foreclosure Law Summary

Information gathered from: http://www.foreclosurelaw.org/

- Judicial Foreclosure Available: Yes

- Non-Judicial Foreclosure Available: Yes

- Primary Security Instruments: Deed of Trust, Mortgage

- Timeline: Typically four months

- Right of Redemption: Yes

- Deficiency Judgments Allowed: Yes
(In Colorado, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process. )

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

Power of Sale Foreclosure Guidelines

The Colorado foreclosure process is quite a bit different than in other states because here, the governor appoints a "Public Trustee" for each county in the state. The trustee must act as an impartial party when handling a power of sale foreclosure. In Colorado, the non-judicial power of sale foreclosure is carried out as follows:

The process begins when the attorney representing the lender files the required documents with the Office of the Public Trustee of the county where the property is located. The Public Trustee then files a "Notice of Election and Demand" with the county clerk and recorder of the county. Once recorded, the notice must be published in a newspaper of general circulation within the county where the property is located for a period of five (5) consecutive weeks.

The Public Trustee must also mail, within ten (10) days after the publication of the notice of election and demand for sale, a copy of the same and a notice of sale as published in the newspaper, to the borrower and any owner or claimant of record, at the address given in the recorded instrument. The Public Trustee must also mail, at lease twenty-one (21) days before the foreclosure sale, a notice to the borrower describing how to redeem the property.

The owner of the property may stop the foreclosure proceedings by filing an "Intent to Cure" with the Public Trustee's office at least fifteen (15) days prior to the foreclosure sale and then paying the necessary amount to bring the loan current by noon the day
before the foreclosure sale is scheduled.

The foreclosure sale must take place between forty-five (45) and sixty (60) days after the recording of the election and demand for sale with the county clerk and recorder. The Public Trustee may hold the sale at any entrance to the courthouse, unless other provisions were made in the deed of trust.

The lender has the option to file a suit for deficiency in Colorado and the borrower has up to seventy five (75) days after the sale to redeem the property by paying the foreclosure sale amount, plus interest.

American Foreclosure Specialists

We know what you're feeling. You've had more than your share of difficulties the last few months. The good news is that you are not alone. American Foreclosure Specialists can help. We understand that good people sometimes need a second chance. Most foreclosures are a result of an unexpected life event, such as:

• Death in the Family
• Difficult and costly Divorce
• Lost a job or had to Change Jobs

Health problems with Expensive Medical Bills Maybe you're struggling with increased utility prices or fuel expenses or an adjustable rate mortgage (ARM) that is unbearable. Maybe you've already had to file bankruptcy or get a forbearance and the repayment plan is not working out. Maybe this is all a big mistake and the payments you've been sending were rerouted or lost because your mortgage has been sold or traded. Let us help you get back on track.

When Good People Need A Second Chance
Whatever the difficulty, we understand how it feels to choose between a mortgage payment or groceries. We understand what it's like to have continual phone calls from your lender ... calls at home, calls at work and letters in the mailbox.

You need to save your home but your Denver lender is asking for too much money. You're not asking for them to forgive the loan but you need help creating a payment plan that you can handle. You just need someone on your side to negotiate with your lender to get you back on track.

We have caring people who want to help you save your home and get you back to where you need to be. We want to help you get back in charge of your finances. Fore foreclosure assistance, contact SOS Home Mitigation today! (866) 767-4663

Where to Turn for Foreclosure Assistance

Where to Turn for Foreclosure Assistance

Facing foreclosure can be a scary thing and most people do not know where to turn when it comes to foreclosure assistance.

It’s funny because the least likely place to look for foreclosure assistance is actually the first place you should look. The first thing you need to do is call your mortgage lender. Despite the popular belief, mortgage lenders do not want to posess your home. They are not in the real estate business and it costs them a lot of time and money not only to foreclose, but to sell the house after they acquire it in a foreclosure. No, mortgage lenders do not want your home, what they really want is their loans paid.

The reason you call your Denver mortgage lender first when you need help stopping foreclosure is that your mortgage lender holds your mortgage and may have several ways to assist you. Your Denver lender can decide to let you have more time to pay, agree to modify or change your mortgage payment terms, etc. Most mortgage lenders in Denver will work with you, but there is not requirement that they do that. Some of the lenders out there will not work with you for whatever reason. So you call your mortgage lender first to see if they can help you stop or avoid foreclosure.

Another source to look for foreclosure assistance is to check with several lawyers in your area. The reason for checking with several lawyers is that some lawyers are more helpful than others. And their fees will vary, some charge more than others. You will probably want to talk with a bankruptcy lawyer because bankruptcy lawyers deal with matters of stopping debt collection. A Denver lawyer can tell you your legal rights as well as explain to you the complete foreclosure process.

A third place to look for foreclosure help is the internet. However, you need to be careful. We have seen a number of websites claiming to be stop foreclosure specialists. I do not know of any government or private organization that certifies stop foreclosure specialists. I have also seen websites that claim to tell you the foreclosure law for your state. I know for a fact that some sites have not completely stated my state's foreclosure law and that by being incomplete, they may mislead website viewers. A lot of the information on the internet is good information, but you need to be careful. "If it sounds to good to be true, it probably isn't true".

Whether you look locally or on the internet for assistance in stopping foreclosure help, check several sources use your best judgment as to what is true and what is not true, and be sure of what the fees are before you have any individual or company take any action on your behalf. Be suspect of any individual or company that will not tell you up front what they can do for you to stop or avoid foreclosure.

It is important that you realize that you may have several options to stop or avoid foreclosure, but that not every option will work in every situation.