Summary: Colorado foreclosure law recognizes both judicial and non judicial foreclosures, depending on whether the mortgage or deed of trust contains a Power of Sale clause. Four month is the time period for the typical foreclosure in Colorado. Colorado allows borrowers to seek a right of redemption and also allows lenders to pursue a deficiency judgment.

If you own property in the State of Colorado, you should be well informed of the foreclosure laws in this state. Depending on the language in your security instrument such as your mortgage or deed of trust, you may be subject to either a judicial or a non judicial foreclosure. You are entitled to a right of redemption and there are deficiency judgments allowed in the State of Colorado for the lender.

Like most judicial foreclosures in the rest of the United State, judicial foreclosures require the lender to file a lawsuit against the borrower in the county where the property is located against the borrower. The lender will usually wait until the borrower is behind in their payments for at least 30 days before commencing on a judicial foreclosure. The lender will then proceed to get the court to declare an Order of Foreclosure so that the property can be auctioned off.

If your mortgage or deed of trust has a Power of Sale clause, this gives the lender the power to sell the property if you default on the mortgage payments. When the lender invokes the power of sale clause, they have to follow the guidelines for this process which allows the lender to take possession of the property and sell it without going to court.

In the State of Colorado, the governor appoints a trustee to oversee the process of the non-judicial foreclosure. Although there is no formal court hearing or order issued, the attorney for the lender must file documents with the Office of the Public Trustee in the county and a Notice Of Election and Demand. This is recorded and then published in newspapers that circulate in the county where the property that is to be foreclosed upon is located.

The public trustee then takes care of the non-judicial foreclosure and must mail notice of same to the borrower to inform them of the date of the sale. This must occur no more than 10 days after the Notice of Election and Demand is filed and must be no more than 21 days before the date of the sale. The borrower then has 7 days to bring the mortgage current, no more than 15 days prior to the sale.

In a non-judicial foreclosure in the State of Colorado, the sale takes place between 45 and 60 days after the recorded Demand for Sale. The public trustee conducts the auction and the highest bidder is named the owner. The borrower has 75 days to pay the foreclosure sale price, interest and fees to reclaim the property.

The lender can get a deficiency judgment against the borrower for the amount of the mortgage less the amount of the sale, if appropriate.

If you have property in the State of Colorado, it is important that you understand the foreclosure law of this state as well as your rights when it comes to preventing foreclosure or redeeming your property. The first thing that you should do when you want to stop foreclosure in Colorado is to seek out loss mitigation firms. Loss mitigation consultants can give you a free foreclosure evaluation of your property and tell you what options are open to you. You are better off to ask for a free foreclosure consultation as soon as you feel that your property is about to go into foreclosure or have received notice as you have many ways in this state to prevent foreclosure.

Loss mitigation companies can help you save your home from foreclosure. Many people who have a bad mortgage in Colorado and feel that they are in over their heads struggle to pay a mortgage that they know they are going to end up defaulting on sooner or later. You are often better off to get a brand new start and go with a loss mitigation consultant who will help you negotiate the short sale with an investor. In this process, the loss mitigation consultants will work with the lender and the buyer to come up with a deal that will be agreeable to both parties. This will also allow you to walk away from the problem without the blemish of foreclosure on your record. You do not have to worry about a deficiency judgment, either.

Other ways to stop foreclosure in Colorado is to seek out loan modification, government assistance and even bad credit loans. Your loss mitigation specialist can help you decide what is right for you.

Deficiency judgments often cause people who go through the foreclosure process to file bankruptcy. This is because this can be substantial, especially with the prices of homes falling throughout the United States. If you have property that was once worth $300,000 and is now only valued at $250,000, it is quite possible that you may owe more than the property is worth. It is therefore prudent for you to not only prevent foreclosure, but also the deficiency judgment that can go along with it. You need to get foreclosure help as soon as possible from qualified foreclosure companies.

Do not think that there is nothing that you can do if you are facing foreclosure in the State of Colorado. Seek foreclosure help at the first sign of trouble and prevent foreclosure from happening to you. Depending on your circumstances, your loss mitigation consultant may be able to help you save your home. You can get foreclosure help by going to www.1stforeclosureprevention.com and should do so without delay. Do not wait until you lose your home and face bankruptcy. Often, loss mitigation companies can help stop foreclosure and help you save your home.