How Long Does It Take to Foreclose a Home in Colorado?

The time it takes to foreclose a home in Colorado varies based on several factors but is typically between four and five months. It can be a complex and lengthy process, and it’s crucial for banks, creditors, or lenders to know not only their legal responsibilities and rights but the borrower’s as well.

To ensure you protect your rights, resolve any problems that may come up during the foreclosure process, mitigate your losses, and recover what you are owed, you should consider discussing your specific situation with a Colorado foreclosure attorney before proceeding.

What Are The Steps to Foreclose a Home in Colorado?

Under federal law, a lender usually cannot formally begin a foreclosure until the borrower’s loan is overdue for more than 120 days. Depending on your situation, you can either opt for a judicial foreclosure process or a nonjudicial foreclosure process.

The Judicial Foreclosure Process

With the judicial process, your Colorado foreclosure attorney will file a lawsuit against the borrower, asking the judge for authorization to sell the house to recover the borrower’s debt. If you win your case, you will be allowed to sell the house in a foreclosure sale.

The Nonjudicial Foreclosure Process

With this option, which is more common, you must complete specific steps before you can sell the house, and the process will be handled by a Public Trustee:

• Foreclosure officially begins when you file a Notice of Election and Demand with the Public Trustee.
• The Public Trustee must set a foreclosure sale date that cannot be more than 125 days or less than 110 days from the notice filing date.
• Your Colorado foreclosure attorney will file a motion asking the judge to approve the foreclosure sale. The judge will set a hearing to determine if you have the right to foreclose the house and sell it.
• Borrowers in Colorado have a right to cure their default by paying their overdue mortgage payments, including any associated fees, up until noon the day before the foreclosure sale. To do so, they must file a notice of their intent to cure with the Public Trustee at least 15 days prior to the sale date. This filing initiates the process of receiving a cure statement, which details the amount required to stop the foreclosure.
• If the borrower doesn’t cure their default or fails to stop the foreclosure process by other means, the foreclosure sale will proceed as scheduled. Once the house is sold, certain lienholders may have the opportunity to redeem the property, which means they can pay the foreclosure sale price plus additional costs to take ownership. However, the borrower does not have the legal right to repurchase or redeem the house after the sale.. If the house does not sell, ownership of the property will be transferred to you.
• If you end up taking title to the property, you can start the eviction process if the homeowner has yet to vacate the house.

Get Legal Advice From Our Experienced Colorado Foreclosure Attorneys

At Brown Dunning Walker Fein Drusch PC, our Colorado foreclosure attorneys can provide representation and guidance to lenders going through a foreclosure. We can advise you on the legal options available to you and make sure that all paperwork, deadlines, and legal requirements are met. Find out more about how we can assist you by scheduling your case evaluation with our Colorado foreclosure attorneys and calling our office at 303-329-3363 or contact us online.