How foreclosure works in Colorado
By Rent to Own Guide · Published · How we research
Short answer
| Process | County public trustee sale, with a required Rule 120 court order (§ 38-38-105) |
|---|---|
| Before filing | Notice at least 30 days ahead, with the state foreclosure hotline number |
| Sale date | 110 to 125 days after the notice of election and demand is recorded (§ 38-38-108) |
| Payment | By the time of the sale; cash, certified funds or wire |
| Cure | File notice 15 days before the sale; pay by noon the day before (§ 38-38-104) |
| Redemption | None for the owner after the sale; junior lienholders only |
| Deficiency | Allowed; the lender must bid at least its fair-value estimate |
| Pre-foreclosure purchases | Foreclosure Protection Act: 3-day cancellation, lease-back conditions (§ 6-1-1115) |
How a Colorado foreclosure works
Colorado home loans secured by a deed of trust are foreclosed by the county public trustee, a public official, not a private trustee. It isn't a full lawsuit, but the lender must still get a court order authorizing the sale (a “Rule 120” order), or the sale is invalid (C.R.S. § 38-38-105). The steps for a home:
- Pre-filing notice. At least 30 days before starting, the lender mails the owner a notice with the Colorado foreclosure hotline's number, the lender's loss-mitigation contact, and a warning that foreclosure consultants can't charge up-front fees (§ 38-38-102.5).
- Notice of election and demand. The lender files it with the public trustee, who records it with the county clerk and recorder. The trustee then mails combined notices and publishes the sale for five weeks (§ 38-38-103).
- Court order. The lender gets the Rule 120 order; notice of the hearing is posted on the home at least 14 days before it (§ 38-38-105).
- The sale, 110 to 125 days after recording. For a home that isn't agricultural property, the sale is held 110 to 125 days after the notice of election and demand is recorded (§ 38-38-108), and can be continued week to week.
Buying at a Colorado public trustee sale
- Many sales are online. The law allows sales at a county building or online (§ 38-38-110). Denver holds its auctions online on Thursdays at 10 a.m., and bidders register and deposit funds online first (Denver Public Trustee). Each county sets its own schedule.
- Pay at the sale. Payment is due by the time of the sale, or a later time that day the trustee sets (§ 38-38-106). Jefferson County requires “Cash, certified funds or verifiable wire transfer” at the time of sale (Jefferson County).
- The lender's bid is public. The lender must submit its bid by noon two business days before the sale, and the trustee makes it available to the public (§ 38-38-106).
- No clear-title guarantee. “A Public Trustee's Deed is not a Warranty Deed” and is subject to senior liens (Jefferson County). Junior lienholders may also redeem in the weeks after the sale, so title can take time to settle.
Buying a pre-foreclosure home in Colorado
Colorado's Foreclosure Protection Act covers an “equity purchaser”: anyone who buys an owner's principal residence, other than to live in it, once foreclosure has started or the buyer knows the loan is at least 30 days delinquent (§ 6-1-1103). For those purchases:
- The written contract must include the full terms, any lease or buy-back option, and a notice that you can't have the owner sign a deed until the cancellation period ends (§ 6-1-1112).
- The owner can cancel until midnight of the third business day after signing, or noon the day before the sale if that comes first (§ 6-1-1113). Until then you can't take or record a deed, or pay the owner (§ 6-1-1117).
- A lease-back with an option to buy back is allowed only if you take over or pay off the foreclosing loan, give the owner a 30-day right to cure up to three times, and verify they can afford it (presumed at 60% or less of gross monthly income). A buy-back price more than 25% above what you paid is presumed unconscionable (§ 6-1-1115).
Breaking the cancellation-period rules can bring up to a year in county jail, a fine of up to $25,000, or both (§ 6-1-1118). Paid foreclosure consultants can't charge before finishing their work or take an interest in the home (§ 6-1-1107).
Where to find Colorado foreclosure records
- Public trustee searches: each county's public trustee lists active foreclosures. Jefferson County's foreclosure search shows each case's documents and weekly reports; records stay public even after a foreclosure is withdrawn.
- No official pre-foreclosure list: public trustees report only homes already in foreclosure (Jefferson County).
- Newspaper notices: searchable on Public Notice Colorado.
- Listings: Colorado pre-foreclosures on Foreclosure.com and Colorado foreclosures. Check the public trustee's file before acting on a listing.
If the home in foreclosure is yours
You can stop the sale by filing a notice of intent to cure with the public trustee at least 15 days before the sale and paying the past-due amount, not the accelerated balance, by noon the day before (§ 38-38-104). Don't count on time after the sale: for foreclosures under the law in effect since 2008, the owner “NO LONGER HAS A REDEMPTION PERIOD” (Adams County Public Trustee); only junior lienholders can redeem.
The lender must bid at least its good-faith estimate of the home's fair market value, less senior liens and costs, and if it doesn't, you can raise that as a defense to a deficiency suit (§ 38-38-106). Our homeowner options guide covers the main choices.