Foreclosure, the legal process by which lenders can take back a property due to non-payment of a mortgage, is a daunting experience for homeowners. For Colorado residents, understanding the specific steps and timeline involved in the foreclosure process can be instrumental in making informed decisions and possibly avoiding the loss of one’s home. This article outlines the foreclosure timeline in Colorado to help homeowners navigate this complex legal process.
Before the foreclosure process begins, the lender will typically contact the homeowner multiple times regarding missed payments. Usually, a homeowner must be about 120 days delinquent on their mortgage payments before the lender can initiate the foreclosure.
Notice of Election and Demand (NED)
After 120 days, the lender will instruct the Public Trustee to start the foreclosure process. The Public Trustee will then record a Notice of Election and Demand (NED). After this is filed, the homeowner will have 110-125 days before the home is sold at a foreclosure sale.
Right to Cure
In Colorado, homeowners have a unique opportunity known as the “Right to Cure.” This allows homeowners to bring their mortgage current up to 15 days before the scheduled foreclosure sale. It requires homeowners to notify the Public Trustee in writing of their intent to cure the default and make the necessary payments.
The property will be auctioned at a Public Trustee’s sale if the default is not cured. The lender typically becomes the property owner if a third party does not purchase the property.
Once the property is sold at the Public Trustee’s sale, certain junior lienholders may have a redemption period during which they can buy it. Homeowners, however, don’t have a redemption right in Colorado once the property has been sold.
After the foreclosure sale and any applicable redemption period, the lender can initiate eviction proceedings to remove the homeowner if the homeowner hasn’t already vacated the property.
Need Help Navigating the Colorado Foreclosure Process?
Baker Law Group’s seasoned Colorado Foreclosure Attorneys are well-versed in the state’s foreclosure laws and can provide you with the guidance and representation you need.
Whether in Denver or any other part of Colorado, our Denver Foreclosure Lawyers can help safeguard your rights and explore the best options for your situation. Don’t navigate these tumultuous waters alone; reach out to us today.