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The Colorado’s Foreclosure Process
For the most part, a borrower must be three or more payments delinquent on payments before most lenders will initiate the foreclosure process. This is considered the pre-foreclosure time period in which the mortgage company and it’s legal team will send warnings and potentially “intent to foreclose” letters.
After three months of missed payments, the mortgage company will file a “Notice of Election and Demand” (NED) with the Public Trustee within the respective county.
The NED is then sent to the homeowner, which then marks the beginning of the Foreclosure Process. The NED will provide information about the foreclosing attorney, who represents the mortgage company, as well as the public auction sales date set forth for the property.
Following the NED, a homeowner will receive notice of a Rule 120 hearing with the district county court. This hearing determines a mortgage company’s legal right to initiate the foreclosure process on a delinquent loan. This is also the cure period for the mortgage, during which time a homeowner must submit an “intent to cure” notice with the public trustee.
To cure the loan, all sums due must be paid to the public trustee via certified funds no later than noon on the day before the public auction. If no intent to cure or workout is reached before this time, the property will go to sale.
Following the public auction, the homeowner may be evicted from the property. There is no longer an owner - redemption period in the state of Colorado and the homeowner should prepare to leave the property shortly after the sale.
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