Colorado Foreclosure Law allows for both judicial (in-court) and non-judicial (out-of-court) foreclosure proceedings. Colorado Foreclosures are managed by a public trustee and the non-judicial foreclosure process is the most common. the timeline is about six months. Judicial foreclosures are not commonly used in Colorado.
The Colorado Foreclosure process uses a public trustee. The public trustee for each county is either appointed by the governor or can be an 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, known as a combined notice. Once the public trustee officially records the foreclosure action, a foreclosure sale can be scheduled.
There are many hoops a lender must jump through during the pre-forclosure process. Once 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, they must submit notice of their intention to the public trustee a minimum of15 days before the sale. Once completed, the borrower must pay off the default to stop the foreclosure process and has up until noon of the day before the sale.
Notice of Sale & Auction
The public trustee must schedules the sale 110 to 125 days after the initial foreclosure action is recorded. The notice of sale is to be published in a local newspaper for 12 weeks. The public trustee is also required to mails a copy of the notice to the borrower.
Most Colorado Foreclosures sales are conducted at the county courthouse. At the sale, the public trustee reads the written bid submitted by the lender. Anybody is allowed to 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.
While there was a redemption period at one time, there is no longer any redemption period for the previous owner after a foreclosure sale in Colorado.