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With the recession of 2008, thousands of homeowners suddenly found themselves on the brink of or in the middle of foreclosure. While the foreclosure numbers are steadily dropping, there are still homeowners who, for one reason or another, face foreclosure every day.
Each state has its own laws and regulations governing foreclosure. In Colorado, there are two types of foreclosures: judicial and non-judicial foreclosure. The type of foreclosure depends on whether there is a “power of sale” in the deed of trust or the mortgage paperwork.
A judicial foreclosure is not common in Colorado. This type of foreclosure is often used by homeowners associations that want to foreclose on a unit for unpaid assessments. In order for a judicial foreclosure to begin, the homeowner must receive a Summons and Complaint from the loan holder. The papers note that the court will issue a decree or an order for the loan holder to conduct a foreclosure sale.
If the court issues the decree, then the sheriff of the country where the property is located will conduct the sale. If the property owner wants to file an answer to the Summons and Complaint, then a filing fee must be paid. However, once the court declares a foreclosure, the property will be auctioned off by the sheriff to the highest bidder.
This type of foreclosure is much more common in Colorado. It also a bit different in Colorado than it is in other states. A “public trustee” is appointed by the governor in each county. The trustee must be impartial in all dealings with a foreclosure.
The foreclosure process gets underway when the proper paperwork is filed by the lender with the Office of the Public Trustee. A “Notice of Election and Demand” is filed by the public trustee with country clerk. In addition, the public trustee will publish the notice in the local paper for five weeks.
Within 10 days, the public trustee must mail the “Notice of Election and Demand,“ as well as the notice of sale to the borrower. Within 21 days before the sale, the public trustee must mail the borrower a notice on how he or she can make the loan current. If the borrower plans to pay the amount required to keep the property from selling, then he or she needs to file an “Intent to Cure” within 15 days of the sale.
If the sale is going to proceed, it must happen between 45 and 60 days of when the “Notice of Election and Demand” was filed with the county clerk.
There are legal options to homeowners who are facing foreclosure, in Colorado and around the country. However, in order to learn more about how those options work or what is required from the homeowner, it is recommended that legal advice and guidance be sought before agreeing to anything or signing anything from the lender.
This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified foreclosure lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local foreclosure attorney to discuss your specific legal situation.