 Colorado Loan Modification Guidelines
When you develop a definite plan of action with well-timed, well-informed
steps, you can stop the foreclosure process and save your home. We have
outlined the foreclose process for the state of Colorado.
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: Yes
Public Trustee - A Colorado Concept
In contrast to most states, where the trustee is usually the hired gun
of the lender, Colorado has an impartial, accountable, "public trustee" appointed
by the Governor for each county, who handles power of sale foreclosures
on request. The public trustee may take only the compensation set by law.
A private lender engages a public trustee by filing with the trustee two
copies of a notice of election and demand for sale, the original note or
a suitable bond and a mailing list of persons who must receive foreclosure
notices.
Non-judicial Foreclosure
Preliminary Notices
Advertising
A notice of sale stating the time and place of the foreclosure must be
advertised in accordance with the terms of the deed of trust, but under
Colorado law all deeds of trust must prescribe a weekly advertising period
for the notice of sale in a newspaper of general circulation, of not less
than four weeks.
Recording
The public trustee must record the lender's notice of election and demand
for sale.
Mailing
The public trustee must mail, within ten 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 21 days before the foreclosure
sale, a notice to the borrower describing how to redeem the property.
Right-to-Cure Default
If the loan default is due to nonpayment, then the borrower can give notice
of an intention to cure the default at least seven days before the foreclosure
sale. The trustee must then, on request, investigate and tell the borrower
the sum due on the loan. If, on or before 12:00 noon of the day before
the date of the sale, the owners, parties or borrowers pay to the officer
conducting the sale all delinquent principal and interest payments that
are due as of the date of such payment, plus costs, expenses, late charges
and attorney's fees, but not future principal (since no extra debt is allowed
due to acceleration) then the foreclosure must be stopped. This right my
be exercised more than one time.
Sale Procedures
Date
The foreclosure sale must be held between 45 days and 60 days after the
recording of the election and demand for sale.
Place
The public trustee may conduct the sale at any door or entrance to a courthouse,
not withstanding the deed of trust's provisions, or the trustee may conduct
the sale at the location specified in the deed of trust.
Post-Sale Matters
The trustee will pay an excess proceeds from the foreclosure sale to creditors
in order of their priority, and the balance to the grantor, who has five
years to claim it. Title is conveyed by deed to the higher bidder, who
may be the lender.
Deficiency
The lender may sue for a deficiency.
Redemption
The borrower has 75 days after the date of sale to redeem the premises
by paying the public trustee the sum for which the property was sold, with
interest. A variety of redemption periods exists for junior lien holders.
Special rights exist in the case of agricultural borrowers. 
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