In Colorado, a non-judicial process administered by Public Trustees is available to lenders foreclosing on deeds of trust. Liens other than deeds of trust (e.g., mechanics’ liens) must be foreclosed through the courts. The judicial process is similar to that described below.
Foreclosing on a deed of trust through the Public Trustee’s office is a process governed by statute. Article 38 of the Colorado Revised Statutes creates a timeline, beginning with the filing of a Notice of Election and Demand (“Notice”) and ending with the issuance of a Confirmation Deed to the holder of the Certificate of Purchase or the last Certificate of Redemption. Learning the timeline is an excellent starting point if you wish to understand the complexities of the foreclosure process. In addition to the timeline, you should remember the following rules:
THE CURE PERIOD
The foreclosure process beginswhen the lender sends the Notice to the Public Trustee. The Notice is recorded and thereby alerts the general public to the foreclosure. For a secured lien that is not foreclosed through the Public Trustee’s office (e.g., a mechanics’ lien) the process begins with a court action that is evidenced in the public records by a lis pendens. Subject to delays caused by procedural non-compliance (e.g., untimely delivery of cure figures to the Public Trustee) or bankruptcy, the foreclosure sale (“Auction”) will be held 110-125 days after recordation of the Notice (215-230 days after the Notice if the property is “agricultural”). The time between the Notice recordation date and the Auction date is the cure period.
Curing a default simply means bringing the loan payments current. The cure amount will include all past due principal and interest, any late fees and the costs associated with initiating the foreclosure. Curing a default has the effect of restoring the owner and the lender to their original status - the owner keeps the property and must resume regular mortgage payments and the lien of the lender remains in force and effective.