A simple guide to the colorado foreclosure process

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A simple guide to the colorado foreclosure process
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A Simple Guide to the Colorado Foreclosure Process

• Do you need to learn more about the Colorado
  foreclosure process? Here is a simple guide
  explaining the process and Colorados various
  foreclosure laws.

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Keyword(s) foreclosure process

• The foreclosure process in Colorado is no longer
  the issue that it once was. In the fourth quarter
  of 2017, completed foreclosures fell 29.4
  percent compared to the same time in 2016.
• Unfortunately, foreclosures still happen. But the
  process isnt as esoteric as it appears from the
  outside.
• In fact, by learning how foreclosures work in
  Colorado and the laws governing the filing
  you may even be able to save your house.
• Heres what you need to know about going into
  foreclosure in the state of Colorado.
• A Simple Guide to the Colorado Foreclosure
  Process

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Colorado Foreclosure Process Timeline

• Lets start with the timeline. While some
  foreclosures are swift and simple sales, the
  majority follow a similar calendar to the one
  below
• Missed Payment 1 day
• The process begins the day you miss a payment
  no earlier, no later.
• Day 1 is the day you fail to make a payment. From
  here, you enter into delinquency. If youre
  unable to make the payment within a calendar
  month, youll move into the second phase
  delinquency.
• Demand Letter 45-60 days
• Once in delinquency, youre on your way to a
  demand letter. The date of the letter depends
  upon your lenders practices.

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Colorado Foreclosure Process Timeline

• Expect a letter demanding the missed payment
  somewhere between 45 and 60 days after your
  payments due date.
• Foreclosure Filing 118 days
• Failing to make a payment on your mortgage for 90
  days in Colorado leads to a foreclosure filing.
• The foreclosure phase begins at day 118.

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Colorado Foreclosure Process Timeline

• Default Judgment, Sheriffs Sale, Confirmation
  118 -150 days
• Things begin to move swiftly once day 118
  arrives. From here, homeowners can expect their
  default judgment followed by a sheriffs sale and
  confirmation of foreclosure potentially within 30
  days. However, the process is complicated and may
  take substantially longer.
• Eviction 150 days
• Once the house sells, you may be evicted.
• A Simple Guide to the Colorado Foreclosure Process

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Stopping the Timeline

• Just because youve reached the beginnings of the
  foreclosure process doesnt mean all is lost.
• The foreclosure process in Colorado only begins
  once your lender files a proceeds demand known as
  a Notice of Election or Demand (NED). Once the
  NED is registered with the Public Trustee, you
  still have 110-125 days to start making regular
  payments again.
• If your failure to pay was a temporary blip,
  dont despair. As long as you can catch up during
  this time frame, then you can halt the
  foreclosure process.

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The Basics of the Foreclosure Process

• Its important to go through a few fundamental
  concepts to better understand the foreclosure
  process
• First, lets discuss the types of foreclosures
  that occur judicial and nonjudicial. As you
  might expect, a judicial foreclosure requires the
  lender to foreclose on the homeowner by going
  through the courts. Nonjudicial foreclosure is
  initiated and completed by the lender, and its
  allowed because of a clause found in the original
  mortgage agreement.
• In Colorado, most foreclosures are nonjudicial,
  but both types are legal. Colorado differs from
  other states because other states choose a kind
  of foreclosure while banning the other.

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How Does Nonjudicial Foreclosure Work?

• A nonjudicial foreclosure begins when the party
  foreclosing on the property (often your lender)
  files proof that it owns the debt with the public
  trustee.
• Once this is done, the party holding the mortgage
  has to head to court. The process follows the
  Rule 120 proceeding schedule, which authorizes
  the sale of the property.
• The mortgage holder then gives the public trustee
  their copy of the sale order before the scheduled
  sale.

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What Is a Public Trustee?

• One word has come up a few times in this
  article, and it may be one youre unfamiliar
  with public trustee.
• Another of the ways the Colorado foreclosure
  process is unique compared to other states is
  that it allows nonjudicial foreclosures and a
  public trustee is used.
• The public trustee is a public official who
  works for the city or county. Their role
  includes
• Walking homeowners through the foreclosure
  process
• Giving homeowners a list of resources
• Showing homeowners who they can cure their
  foreclosure
• There are some limits. You cant appeal to a
  public trustee nor can they administer any debt
  mitigation agreement. In fact, they cant provide
  any legal advice whatsoever to any homeowner
  theyre in contact with.
• Any resources provided are limited to names and
  phone numbers of external parties.

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Is Anyone Exempt from the Mortgage Foreclosure
Process Under CO Law?

• Generally, no.
• However, state law allows for specific
  protections for members of the National Guard
  when theyre serving on active duty for over 30
  days.
• The law cited is Colo. Rev. Stat 28-3-1406. It
  doesnt require the service to be performed
  abroad both military and state defense force
  active duty count.

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How Can I Save My House?

• The first way to stop a foreclosure is always
  through negotiating with your lender. If your
  lender says no, then the state of Colorado offers
  a section option called curing.
• A cure means that someone pays for past payments
  owed (and due), fees, interest, and any costs
  associated with the foreclosure process.
• To participate, youll need to file an Intent to
  Cure form with your local city or country Public
  Trustee. You must sign it in front of the office
  staff. If you cant make it to the office, then
  the form must be notarized.
• An Intent to Cure form is free to file and it
  could help you if you submit the form a minimum
  of 15 days before the auction date.
• Once the cure is filed, Public trustee and the
  lender negotiate. If they agree on a payment,
  youll have the opportunity to cure your
  property by paying the fee in full before the
  auction date.

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Fast Facts About the Foreclosure Process in CO

1. If youve made it this far, lets recap what you
   need to know about your Colorado foreclosure
2. The average timeline of foreclosure in Colorado
   is four months.
3. Both a mortgage and deed of trust can be
   foreclosed upon.
4. Colorado allows a right of redemption and
   deficiency judgments you can save your house.
5. Both judicial and non-judicial foreclosures are
   legal.

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