The Process

The process of foreclosure is the Banks way of enforcing the mortgage agreement. Colorado foreclosure laws may change from time to time. This guide is provided for informational purposes. It is not intended as legal advice.

The legal process begins when the Public Trustee records the Notice of Election and Demand received from the Banks attorney. The public Trustee sets the sale date out between 6-8 weeks. Let's start at the beginning.

PART ONE

Something happens and you (the borrower) do not make your mortgage one month. You probably feel a lot on anxiety about the missed payment, fear and uncertainty creep into your thoughts, but at this point nothing happens.

The following month the mortgage statement you receive has a big "Past Due" amount and your charged a late fee. You are now 2 months behind. The anxiety grows.

The same thing happens month three and month four. The Bank cannot start foreclosure proceedings until the mortgage loan is delinquent more than 120 days. Most of the communication you receive will be through the mail until this point. You may get a phone call from the Bank, but mostly notices mailed to you.

PART TWO

Once the Notice of Election and Demand (NED) is recorded in the public records you will receive two copies. One is from the Public Trustee and one from the Bank Attorney. These are mailed to the address listed on the deed and usually sent by certified mail. At the same time the Public Trustee will send a Notice of Rights to Cure. This will provide you with information on how to obtain a payoff amount and deadline. The Bank Attorney will also publish the Notice of Sale in the newspaper as required by law.

This is when strangers start to knock on the door. The Bank may send a Field Agent to check on the property and see who is living there. Some times they will talk to the neighbors to find out who lives there. This is also the time when you come home and find "Foreclosure relief" door hangers on the front door left by investors wanting to buy your home.

PART THREE

It is now 8 months since you missed that first payment. The Public Trustee will conduct an auction at which your home will be sold to the highest bidder. This is the final opportunity to save your home. Foreclosure Auctions are attended by a bank representative, real estate investors and any other interested parties. The Public Trustee sells your home. The Bank or other investor pays the Trustee and a Certificate of Purchase is issued and recorded. The Public Trustee will issue the Confirmation Deed once a short redemption period expires.

That's it. That's the process. Next visit the Buy Time section to learn what your options are.