How Foreclosures Work in Colorado

The foreclosure laws vary for each state. Needless to say it’s a lengthy and costly process. And because it takes so long, many home owners live in their home for months, if not years without paying their mortgage. This practice is not such a bad thing: it gives the financially struggling home owner a place to live, plus it’s better than leaving the home vacant where the home could deteriorate.

Colorado Foreclosure Laws

Colorado foreclosures occur through both in-court and out-of-court proceedings. The most common process is managed by a public trustee out of court and takes about six months.

Judicial – yes
Non-Judicial – yes
Process Period – 145 Days
Sale Publication – 60 Days
Redemption Period – None
Sale/NTS – Public Trustee

Pre-foreclosure Period

The public trustee for each county is either appointed by the governor or elected by the public. The out-of-court foreclosure process begins when a lender files the appropriate documents with the public trustee to request a sale of the property. Once the public trustee officially records the foreclosure action, a foreclosure sale can be scheduled.

After the sale is scheduled, the lender still has to obtain a separate court order allowing the sale. The court schedules a hearing to consider the matter, and all affected parties are notified. If no one contests that the borrower is in default, the court allows the sale without a hearing.

If the borrower plans to pay off the default and stop the foreclosure, he or she needs to submit the intention to do this to the public trustee at least 15 days before the sale. If this is done, the borrower can pay off the default and discontinue the foreclosure process up until noon the day before the sale.

Notice of Sale / Auction

The public trustee schedules the sale 110-125 days after the initial foreclosure action was recorded. The notice of sale is published in a local newspaper for 12 weeks. The public trustee also mails a copy of the notice to the borrower.

The public trustee typically conducts the sale at the courthouse. At the sale, the public trustee reads the written bid submitted by the lender, and any party may bid. If anyone other than the lender is the winning bidder, that person must deliver the bid amount in cash or cashier’s check to the public trustee. The winning bidder is given a certificate of purchase.

There is no longer any redemption period for the previous owner after a forecosure sale in Colorado.

For more on this topic or questions regarding real estate in Steamboat Springs, feel free to call Charlie at 970-846-6435 or write me an email at: I will answer your post or email promptly with candid and informed answers. Click here to view all properties in Steamboat Springs in “real time” — This is one of the few real estate sites showing all foreclosed and all short sale listings in real time and updated every few minutes.