Think of your mortgage as a promise to pay back the money you borrowed to buy your house. Your house acts as security for that promise. If you stop making payments, you're breaking that promise, and the lender has the right to take back the house through a process called foreclosure.

In Colorado, the most common type of foreclosure is non-judicial, which means it usually happens outside of the courtroom, handled by a public official called the Public Trustee. Each county in Colorado has a Public Trustee.

Here's a simplified step-by-step:

1. You Miss Payments (Default): It all starts when you stop making your mortgage payments. Most loans have a grace period, but after that, you'll likely incur late fees.

2. Lender Sends Notices: The lender will start sending you letters and making calls to try and get you to catch up on your payments. These notices will explain that you are in default.

3. Notice of Election and Demand (NED): If you don't catch up, the lender will take the first official legal step. Their attorney will file a document called a Notice of Election and Demand (NED) with the Public Trustee in the county where your property is located (this would be the Weld County Public Trustee if your home is in Weld County, or the Larimer County Public Trustee if it's in Larimer County). This NED is like saying, "We (the lender) want to start the foreclosure process on this property." This document is also recorded with the County Clerk and Recorder, making it public record.

4. Combined Notice: After the NED is recorded, the Public Trustee will send out a Combined Notice of Foreclosure and Sale to everyone who has an interest in the property (including you). This notice will include the date and time of the foreclosure sale. In Larimer County, this notice is also published in the Loveland Reporter-Herald newspaper for five consecutive weeks. Weld County also publishes these notices.

5. Right to Cure: In Colorado, you have a right to cure the default. This means you can stop the foreclosure process by paying all the past-due amounts, plus any fees and costs the lender has incurred up to 15 calendar days before the scheduled sale date. You need to file a Notice of Intent to Cure with the Public Trustee to officially start this process. The Public Trustee will then get the exact cure amount from the lender. You must pay this full amount by noon on the day before the scheduled sale.

6. Rule 120 Hearing (Potential Court Involvement): Before the Public Trustee can actually sell your house, the lender's attorney usually has to go to court and get an Order Authorizing Sale under Rule 120 of the Colorado Rules of Civil Procedure. This is a hearing where a judge reviews the case to ensure there's a reasonable probability that you are in default and that the foreclosure is proper under the Servicemembers Civil Relief Act (if you're in the military). You will receive notice of this hearing and have the right to attend and present evidence if you believe you are not in default. However, if you don't file a response with the court before the deadline, the court may issue the order without a hearing.

7. Foreclosure Sale: If you don't cure the default and the court (if applicable) authorizes the sale, your property will be sold at a public auction. In Weld County, these sales are held every Wednesday at 10:00 AM inside the Weld County Treasurer/Public Trustee office in Greeley. Starting February 24, 2025, Weld County also moved their Public Trustee foreclosure sales online through RealAuction (https://weld.realforeclose.com). In Larimer County, foreclosure sales are held every Wednesday at 10:00 AM on the 1st floor of the Larimer County Courthouse in Fort Collins. You (or someone representing you with proper authorization) can bid at this auction, as can other interested parties, including the lender. The property is sold to the highest bidder.

8. Redemption Period (for Junior Lien Holders): After the sale, if there are other liens on your property (like a second mortgage or a judgment lien) that are junior to the foreclosing mortgage, those lien holders have a specific period (usually 8 business days after the sale) to "redeem" the property by paying the amount the winning bidder paid, plus interest and costs.

9. No Homeowner Redemption in Colorado: In Colorado, unlike some other states, you as the homeowner generally do not have a right to redeem your property after the foreclosure sale. Once the sale is final and all redemption periods for junior lien holders have passed, the winning bidder (or the lender if no one else bids) becomes the new owner.

10. Confirmation Deed: After all redemption periods expire, the Public Trustee issues a Confirmation Deed to the holder of the Certificate of Purchase (the winning bidder), officially transferring ownership of the property.

Specifics for Weld and Larimer Counties:

• Public Trustee Offices:

  • Weld County Public Trustee: Located within the Weld County Treasurer's Office in Greeley. You can find more information on their website (https://www.weld.gov/Government/Departments/Treasurer-Public-Trustee/Public-Trustee). Their foreclosure sales are now online.

  • Larimer County Public Trustee: Located within the Larimer County Treasurer's Office in Fort Collins. You can find more information on their website (https://www.larimer.org/treasurer/publictrustee). Their foreclosure sales are held in person at the courthouse and also online through https://larimer.realforeclose.com.

• Publication: As mentioned, Larimer County publishes foreclosure notices in the Loveland Reporter-Herald. Weld County also has its designated newspapers for publishing these legal notices. You can check the Public Trustee's websites for the specific newspapers used.

• Online Sales: Both Weld and Larimer Counties now utilize online platforms for their foreclosure auctions, in addition to or instead of in-person sales. You'll need to register on their respective RealAuction websites to participate.

• Cure Period: The right to cure period (up to 15 days before the sale) is the same statewide, including in Weld and Larimer Counties.

Important Things to Remember:

• Time is of the Essence: The foreclosure process has strict deadlines. Don't delay in seeking help.

• Seek Professional Advice: Talk to a HUD-approved housing counselor and a Colorado real estate attorney to understand your specific situation and rights.

• Be Proactive: Don't just wait for the bank to take action. Explore all your options, such as loan modification, short sale, or Deed in Lieu of Foreclosure, early in the process.

Facing foreclosure is incredibly difficult, but understanding the process and taking action is the first step towards finding a solution. Please reach out for help from the resources mentioned above.