Steps to ForeclosureBefore starting the foreclosure proceedings, the lender or their attorney must comply with Colorado law and notify the property owner at least 30 days in advance of their intent to foreclose.
The Foreclosure Process
The foreclosure process includes the following steps:
- The lender’s attorney submits the Notice of Election & Demand—NED to the Public Trustee. The NED may be submitted electronically.
- Within 10 business days of receiving the NED from the lender’s attorney, the Public Trustee records the NED with the County Clerk & Recorder.
- The Public Trustee sets the Sale Date between 110-125 calendar days after the NED is recorded. For agricultural property, the Sale date is set between 215-230 calendar days after the NED is recorded.
- The Public Trustee mails a Combined Notice of Foreclosure and Sale to a Mailing List provided by the lender’s attorney within 20 calendar days after the NED is recorded and again within 45-60 calendar days prior to the first scheduled Sale date.
- The Public Trustee publishes a Combined Notice of Foreclosure and Sale in a local newspaper 5 times over 4 consecutive weeks, ending 45-60 calendar days prior to the first scheduled Sale date.
- The property owner may file a Notice of Intent to Cure anytime up to 15 calendar days prior to the first scheduled sale date. The Public Trustee will request a cure statement from the holder of the evidence of debt. The Public Trustee must receive the cure statement within 10 business days, but no later than the eighth calendar day before the sale. The property owner must then pay the cure amount by the expiration date of the cure statement, or by noon Tuesday before the Wednesday sale—whichever comes first. If the holder fails to submit the cure statement timely, the Public Trustee will continue the sale from week to week until the cure statement is received.
- At least 16 days prior to the sale date, the lender or their attorney must obtain an Order Authorizing Sale (OAS) from the District Court in the County where the property is located.
(C.R.S. §Court Rules, Book 1, Rule 120)
- The lender will request a Rule 120 hearing and notify anyone who appears to have an interest in the property of the hearing date, time and place at least 14 days in advance of the hearing. The purpose of the hearing is to determine that there is a reasonable probability that a default has occurred, and whether an Order Authorizing Sale is otherwise proper under the Service Member Civil Relief Act.
- The owner/borrower may file a response and attend the Rule 120 hearing. If they believe the loan is not in default, they may testify at the hearing. The Judge shall summarily grant or deny the motion.
- If a proper response is filed in opposition to the motion, the Judge will set a new hearing date. If no one files a response prior to 7 days before the hearing, the Court may dispense with the hearing and enter an Order Authorizing Sale.
- The lender must submit the OAS and their signed and itemized bid form to the Public Trustee by noon two business days prior to the sale. If the lender does not submit a bid on a property scheduled for sale, the Public Trustee will automatically continue that property sale one week.
- The lender may submit a notice of Withdrawal or Continuance up to the start of the sale.
- The Pre-sale List is posted on the Public Trustee’s website by 3 p.m., two business days prior to the sale, and an amended list is posted by 4 p.m., the day before the sale.
- The Public Trustee conducts the Foreclosure Sale at 10 a.m. every Wednesday (except certain holidays) in the East Hearing Room at the Arapahoe County Administration Building, 5334 S. Prince St., Littleton, CO 80120. If no lender bids are submitted on any scheduled properties, that week’s sale will be canceled.
- The Public Trustee will record the Certificate of Purchase for successful bidders within 5 business days after the sale.
- Junior lien holders may file an Intent to Redeem no later than the eighth business day after the sale. If a junior lien holder redeems the property, the Public Trustee will record a Certificate of Redemption.
- After all redemption periods have expired, title vests with either the holder of the Certificate of Purchase or the holder of the last Certificate of Redemption.
- Every Certificate of Purchase or Redemption is assignable, but the assignment must be dated, signed, notarized and recorded prior to the date title vests, and a copy of the assignment must be submitted to the Public Trustee.
- No sooner than 10 business days, nor later than 15 business days after title vests, the Public Trustee will execute and record the Confirmation Deed confirming the transfer of title to the property. The Public Trustee will record the Confirmation Deed prior to the 10th business day after title vests, upon the request of the Certificate holder, but only if the certificate holder provides notice that the certificate will not be assigned.