Most real estate loans are “secured” by a mortgage (deed of trust in Colorado). The security is your property. If you stop paying back the loan, rather than suing you,Information Windowyour lender will terminate your interest in the property and sell it to recoup its loan proceeds. The process is called foreclosure.

A loan, or, more specifically, a promissory note, is either RECOURSE or NON-RECOURSE. If it is recourse, then, subject to state laws, your lender could sue you for a foreclosure sale (or short sale) deficiency. If it is non-recourse, then the only remedy available to your lender for non-payment is to take back the property.


Under Colorado law you have rights that you may exercise before your lender can terminate your interest. You should consult legal counsel or call the Colorado Foreclosure Hotline to learn more about your rights.



Owners facing the prospect of foreclosure have a number of options:

  • You may be able to refinance into a new loan or modify the terms of your existing loan in order to reduce monthly payments.
  • Friends and family may be willing to pitch in to help get you through a difficult period.
  • You may be able to better balance monthly income and expense by leasing your property and living (or working) elsewhere.
  • You may be able to sell the property and pay off the mortgage debt.


Some owners request that their lender accept a deed in lieu of foreclosure and some turn to bankruptcy. To help you decide on the best course of action in your particular circumstance, Unified Title Company recommends that you consult legal or other professional counsel (e.g., a mortgage broker or a real estate agent).

   Deeds-in-Lieu & Bankruptcy


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