ColoradoForeclosureConsumerRights

TheforeclosureprocessinColoradoisquiteabitdifferentthaninotherstatesbecausehere,thegovernorappointsa"PublicTrustee"foreachcountyinthestate.Thetrusteemustactasanimpar>alpartywhenhandlingapowerofsaleforeclosure.InColorado,thenon-judicialpowerofsaleforeclosureiscarriedoutasfollows:TheprocessbeginswhentheaDorneyrepresen>ngthelenderfilestherequireddocumentswiththeOfficeofthePublicTrusteeofthecountywherethepropertyislocated.ThePublicTrusteethenfilesa"No>ceofElec>onandDemand"with the county clerk and recorder of the county. Once recorded, the no>cemust be published in anewspaper of general circula>on within the county where the property is located for a period of five (5)consecu>veweeks.ThePublicTrusteemustalsomail,withinten(10)daysaQerthepublica>onoftheno>ceofelec>onanddemandforsale,acopyofthesameandano>ceofsaleaspublishedinthenewspaper,totheborrowerandanyownerorclaimantof record,at theaddressgiven in the recorded instrument.ThePublicTrusteemustalsomail, at leasetwenty-one(21)daysbeforetheforeclosuresale,ano>cetotheborrowerdescribinghowtoredeemtheproperty.The owner of the propertymay stop the foreclosure proceedings by filing an "Intent to Cure" with the PublicTrustee'sofficeat leastfiQeen (15)daysprior to the foreclosure sale and thenpaying thenecessary amount tobringtheloancurrentbynoonthedaybeforetheforeclosuresaleisscheduled.Theforeclosuresalemusttakeplacebetweenforty-five(45)andsixty(60)daysaQertherecordingoftheelec>onanddemandforsalewiththecountyclerkandrecorder.ThePublicTrusteemayholdthesaleatanyentrancetothecourthouse,unlessotherprovisionsweremadeinthedeedoftrust.Thelenderhastheop>ontofileasuitfordeficiencyinColoradoandtheborrowerhasuptoseventyfive(75)daysaQerthesaletoredeemthepropertybypayingtheforeclosuresaleamount,plusinterest.DONOTSIGNANYDOCUMENTTOTRANSFEROWNERSHIPTOANYONEwithoutrepresentaEonofanAGorneyorLicensedRealEstateAgent.TheColoradoAGorneyGeneralwarns that various individualsmay contact you tohelp youavoid foreclosureaLeryouareindefaultonyourmortgage.Aforeclosureconsultantisanindividualyouhireinanon-AGorneyornon-RealEstateAgentrelaEonshiptoassistyouthroughtheforeclosureprocess,andwhoisnotaffiliatedwithyourlender.Bylaw,theseindividualsarerequiredtofollowcertainrulesintheAct,whichyoushouldensurearefollowedbeforeagreeingtopayaforeclosureconsultantafee.AconsultantisnotallowedtochargeorcollectanyfeefromyouunEltheconsultanthasfullyperformedhisorherservices.TheAGorneyGeneralalsowarnsagainstindividualsandscamsthatoffershort-termloansthatallowyoutocurethecurrentdefault,butleaveyouunabletopayofftheshort-termloan.YoushouldalsobeextremelycauEousofanyindividualwhowantsyoutotransferEtletoyourpropertywithanopEontorepurchaseatalaterdate.

7ForeclosureOpEons

1.   Putyourheadinthesand:Don’tdoanythingandthebankwillforecloseonthehome.Youwillreceiveaknockonyourdoorandtheywillaskyoutoleaveorevictyou.Unfortunately,thisiswhatmostdo.

2.   GetCaughtUp:Youwillneedtopaythepaymentsthatyouoweplusallthelatefees.“Doyouknowhowmuchyouowe?Doyouhavetheabilitytopaythistoday?”Thebankusuallywillnotwaitoracceptpar>alpayments.

3.   Forbearance:Yourmortgagepaymentsarereducedorsuspendedforaperiodof>me.Attheendofthat>me,youresumemakingyourregularpaymentsaswellasalumpsumpaymentoraddi>onalpar>alpaymentsforanumberofmonthstobringtheloancurrent.Ifyoumissapaymentduringthisperiodtheymayforecloseimmediately.Thisisasolu>ononlyforashortperiodof>me.Youcancontactyourbankdirectlyandaskforthisop>on.

4.   LoanModificaEon:Apermanentrestructuringofthemortgagewhereoneormoreofthetermsofaborrower'sloanarechangedtoprovideamoreaffordablepayment.Thisisalongtermsolu>on.Youcancontactyourbankdirectlyandaskforthisop>on.

5.   Refinance:Ifyourcredithasnotbeentoodamagedoryouhavealotofequityyoumaybeabletorefinance your exis>ng mortgage. I can get you in contact with aMortgage Professional if youchoosethisop>on.

6.   Bankruptcy: OQen >mes Filing a Bankruptcy will halt the Foreclosure process to allow >me toreorganizeyourdebts.ThismayNOTpreventyoufrombeingforcedtoselltheproperty.Ifyouareinterestedinthisop>onIcangetyouincontactwithanADorneythatspecializeswithBankruptcy.

7.   SellTheHome:Iftheotherop>onsarenotpossibleorifyounolongerdesiretokeepthepropertywecansellitbeforetheForeclosureSaleDate. Ifyoudecidetodothiswemusthurrytoinsurewecomplete the sale prior to the Sale Date. The bank usually will not extend this date. If the netproceedsfromsellingthepropertywillfallshortofthemortgageorliensagainsttheproperty,thisiscalledaShortSale.Inthiscase,thelienholdersagreetoacceptlessthantheamountowedonthedebt,asaleofthepropertycanbeaccomplished.