Colorado Foreclosure Law

In Colorado, lenders may foreclose on deeds of trusts or mortgages in default using either a Colorado judicial foreclosure process or Colorado non-judicial foreclosure process. Colorado foreclosure law allows both right of redemption and deficiency judgements.

Colorado Foreclosure timeline

Colorado Foreclosure timeline is usually 60 days.

Judicial Foreclosure in Colorado

The CO judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Non Judicial Foreclosure in Colorado

The CO non judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust.

What is a power of sale clause?

A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default.

In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.

Right of redemption and deficiency judgement in Colorado foreclosure

The lender has the option to file a suit for deficiency in Colorado and the borrower has up to seventy five (75) days after the sale to redeem the property by paying the foreclosure sale amount, plus interest.

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