In Colorado, both judicial and no-judicial foreclosures apply, this means that the mortgage and the deed of trust are both primary instruments of security. The timeline for a foreclosure to take place in this state is around four months, deficiency judgments are allowed and rights of redemption apply for a period of 75 days after the date of the sale of the property.
Regarding the non-judicial foreclosure process and a “power of sale” clause, Colorado differs from many of the other states. Generally speaking the trustee for a “power of sale” is a representative of the lender, in Colorado, the Governor appoints this trustee. There is a “Public Trustee” appointed for each county and they are required to act as an “impartial” party in the foreclosure process. This is done to ensure that the foreclosure oversees the rights of both the lender and the borrower.
An attorney has to represent the lender and he files the foreclosure documents at the office of the “Public Trustee”. This office in turn files a “notice of election and demand”. This notice is sent to the county clerk/recorders office, and has to be published in county, general circulation newspapers for five weeks consecutively.
The Public Trustee also has to ensure that the borrower and any other claimant receives a copy of this notice within 10 days after publication. A notice describing how the property can be redeemed must also be sent to the borrower at least 21 day prior to the date of the sale.
The property owner may file “Intent to Cure” at the Public Trustees office 15 days before the foreclosure sale is due to take place. This stops the foreclosure process, and the property owner has to pay the amount owing to bring the loan current by midday on the day before the scheduled sale.