The number of distressed properties in Northern Colorado is on the decline as the housing market has begun to look up. But thousands of home owners are still delinquent on mortgages. Unable to pay their mortgage installments on time, they are facing the foreclosure process.
Here at White Sand Property Solutions, we always advise these home owners to act quickly and take advantage of the housing market’s situation, particularly in Fort Collins, Loveland, Windsor, Greeley, Longmont, Berthoud and other surrounding areas of Northern Colorado. Instead of letting the lender take away your home, you can sell it at your own terms and conditions and make the most out of the market.
But in order to be prepared when a home owner is delinquent, it’s important that he knows the foreclosure process in Colorado. It’s different from other states, so a generic knowledge won’t help. Though an experienced real estate attorney should be able to guide you professionally when your property is under foreclosure, here are some basic things that you need to keep in mind if you own a distressed property:
Public trustee system: This system is what makes the foreclosure process in Colorado different from that in other states. The majority of foreclosure in Colorado are non-judicial – in other words they are settled outside the courtrooms, but unlike other non-judicial foreclosure states where a private trustee handles the process, a county public trustee administers the foreclosure in Colorado.
Notices: The first step in foreclosure in Colorado is the lender filing the Notice of Election and Demand, but the borrower must receive a pre-foreclosure notice at least 30 days prior to filing of the Notice of Election and Demand. The borrower receives the pre-foreclosure notice at least thirty days after default. So you must act quickly even before you receive the pre-foreclosure notice.
Homeowners’ Right to Cure in Colorado: In Colorado, the homeowner has the right to cure the default and stop the foreclosure by paying the total amount due including any costs or fees incurred by the lender in filing the foreclosure. To do this, the homeowner must file a notice of intent to cure with the trustee at least 15 days prior to the sale date
Right to Redeem: After Foreclosure in Colorado: In some states, you can redeem (repurchase) your home within a certain period of time after the foreclosure. In Colorado, foreclosed homeowners cannot redeem the home following the foreclosure.