Colorado Foreclosure Timeline Part One: Understanding the Foreclosure Process

In this two-part technical bulletin, we will discuss the foreclosure process for the state of Colorado. In part two, we will discuss the final stages.

This timeline is a simplified summary of the basic procedures under the foreclosure statute and does not attempt to cover all aspects. This is a complex statute and an attorney should be consulted before taking any steps, or making any decisions, regarding the foreclosure process.

Note that, unless otherwise stated, all references to “days” are “calendar days”. When calculating dates, if the specified date is a legal holiday, or a Saturday or Sunday, then the date is extended to next day that is not a legal holiday, Saturday or Sunday.

Pre-foreclosure

• Watch for FHA, HUD and VA loans for additional rules for when foreclosure can be commenced. For example, under HUD rules, foreclosure can be commenced only if at least 3 fully monthly installments are due and unpaid, subject to exceptions.
• At least 30 days before filing notice of election and demand and at least 30 days after default, the lender is required to mail a notice to the borrower containing the telephone numbers of the Colorado foreclosure hot line and the direct telephone number of the lender’s loss mitigation department.

 

Lender’s procedures on commencement of the foreclosure sale

The lender’s attorney will commence the sale by filing the following with the public trustee of the county where the property is:

• Original Notice of Election and Demand for Sale (NED).
• Original evidence of debt, and any endorsements or assignments. If the evidence of debt is mislaid, a lost instrument bond must be submitted, unless the lender is a financial institution that can provide an indemnity.
• Original recorded Deed of Trust, and any original modifications, or any partial releases, or certified copies of these documents.
• The combined notice for mailing to the persons on the mailing list.
• A deposit on the fees of the public trustee.
• Mailing list containing the names and addresses of owners, guarantors, lessees and occupants, (as shown by the public records or records of the lender), who will receive notice of the sale.
• An amended mailing list may be filed, not less than 60 days prior to the first scheduled sale date. If the amended mailing list is received by the public trustee after the mailing has been sent out, the sale will be continued for no less than 65 days after receipt of the amended mailing list. The public trustee shall send the mailing list no less than 45 days prior the actual date of sale.

 

Public trustee procedures on commencement of the foreclosure sale

On receipt of the request for sale, the public trustee must:

• Record the NED – no later than 10 business days after receipt of the request for sale.
• No more than 60 days and no less than 45 days prior to the first scheduled date of sale, advertise the sale in a newspaper once a week for five successive weeks (unless the deed of trust requires a longer period), only after the affidavit of posting of the deferment notice has been received. Sale is continued until this affidavit is received.
• Mail copies of the combined notice to the specified parties no less than 16 days, nor more than 30 days, after the lender has delivered the mailing list. If there is an amended mailing list, then mail the combined notice no more than 60 days and no less than 45 days prior to the first scheduled date of sale.
• Scheduled the sale of date that is not less than 110 days and not more than 125 days after the recording of the NED for non-agricultural property. For agricultural property, the date of sale must be scheduled no less than 215 days and no more than 230 days after the recording of the NED.