How do Colorado foreclosures begin?

The foreclosure process begins when the lender files a Notice of Election and Demand (NED) with the public trustee, who then records it with the county clerk and recorder. Unlike other states that allow a private trustee to conduct non judicial foreclosures, a public trustee handles Colorado non judicial foreclosures.

The public trustee then sets a foreclosure sale date, which cannot be less than 110 calendar days or more than 125 calendar days from when the NED is recorded. (In contrast, for agricultural properties, the sale cannot be less than 215 or more than 230 calendar days from the NED’s recording date.) 

What is a Notice of Election and Demand (NED)?

Notice of Election and Demand is the initial document prepared and submitted to the public trustee by a lender’s lawyer announcing that a property is beginning the foreclosure process. Once a NED is filed, the notice is sent to the county clerk and recorder who mails notices to the borrower informing them of the foreclosure details and their right to cure the loan before the set date-of-sale. 

Is Colorado seeing an increase in foreclosures?

Despite experiencing an uptick in questions surrounding foreclosures in Colorado, we are not experiencing a large increase in foreclosures throughout the state.  Click here to view the graph. 

The most recent large increase took place when the foreclosure freeze was lifted post-pandemic. Since that time, the numbers have rebalanced and normalized. The above link shows foreclosure counts by week for most of the Front Range counties in Colorado.

How do I subscribe to the foreclosure email (NED list)?

Subscribe to the Land Title Weekly News email! In addition to the chart in the link above, the email also includes a weekly Notice of Election and Demand report, Public Trustee Sales, and other beneficial information about local foreclosures. To subscribe to our weekly foreclosure email, please reach out to your Land Title sales representative.

How do I know if a property is currently in foreclosure?

In order to find information on whether or not a property is in foreclosure, visit the public trustee page on the county website where the property is located. Next, use the foreclosure search function. Alternatively, order an O&E from Land Title and look to see if there is a Notice of Election and Demand (NED). 

Foreclosure Timeline At-A-Glance:

To view an example of the foreclosure timeline in Colorado, please click here. For a deeper dive into the foreclosure timeline and its process, view our part 1 and part 2 series on, or ask your sales representative for the full technical bulletins. 

As a real estate agent, what do I need to know about a foreclosed property once it goes under contract?

It is important to know that there are specific instances when you may need to use the Colorado Foreclosure Protection Act (Contract), instead of the standard Contract to Buy and Sell Real Estate. Consult with your managing broker and/or lawyer for more information on when to use the separate contract. 

Additional foreclosure information

If you are interested in becoming more educated about foreclosure transactions, educational opportunities through Educated Minds are available for continuing education credits. For more information on upcoming classes, visit their website here