Here is a summary of foreclosure laws and rules for the State of Colorado:
- Both judicial and non-judicial foreclosure is available, but the non-judicial deed of trust sale is overwhelmingly preferred.
- Colorado has an impartial, accountable, "public trustee" appointed by the Governor for each county, who handles power of sale foreclosures on request.
- If the loan default is due to nonpayment, then the borrower can give notice of an intention to cure the default at least seven days before the foreclosure sale.
- The lender may sue for a deficiency.
- Colorado eliminated the owner's redemption period effective January 1, 2008.
If you are interested in reading the actual statutes relevant to mortgage and foreclosure in Colorado those laws are available online.
Learn more about what the above procedures and rules mean. Review the homeowner foreclosure guide on this website.
Short sale and deficiency question. How long to find out
PART 1. I had a short sale on a investment 4plex which closed January 11th 2010 in Colorado Springs ( a legal state for collecting deficiency)…Carrington Mortgage Services the loan and collects for Deutsche Bank left their option open in the approval letter to come after me for the deficiency.. I have read up to 5 years …It seems I have no right to know if and when I owe. No one will answer me... the phone number I was given on the approval letter had an associate that didn't even know what a 1099 was.
PART 2. After several phone calls I fond that I needed to wait a month to find out. I called this week and talked to their “Recovery Services Department. I was informed that they didn’t have the file yet but there is a possibility and they have a legal right to negotiate this debt and the associate added that she has done this kind of collections as much as two years away from the actual short sale closing. That puts me past the date of tax being excused 2012. If there is no law in place that requires banks to inform then the Obama tax help is will not help.
Part 3. I am also unemployed. I know I will eventually be employed. This ordeal and the laws ( if I’m informed correctly) means that once I’m on my feet they can come and knock me down and cover me in debt that will last the rest of my life. If I owe this debt then don’t they have an obligation to let me know and is there a time limit? Can they just come to me 5 years from now and ruin my life? Can anyone speak to what strategy I can use to find out what my next step should be? Do I have any avenue to find out or require an answer from Deutsche Bank as to their intention?
The language on the short sale approval letter is:
• The mortgagor (s) is advised to discuss the ramifications or this transaction with an attorney and or Tax advisor.
• This transaction is not to be considered a resolution of the account, satisfaction of the debt or payment in full.
I understand Deutsche Bank has the law on their side. But…I would argue that it is morally wrong to hold the information about the collection of a deficiency. I want and need to rebuild my life. My hope is that your bank will change your policy. I request that you expedite your decision
Thanks in advance for any wisdom you can bring to my dilemma.
Re: No owner redemption period.
The law regarding evictions is different in every state. You need to speak with a Colorado attorney regarding your situation.
No Owners Redemption Period ?
How soon after the public trustee sale can the occupant be evicted in Colorado?Does the property have to be deeded in the name of the person who purchased the property at auction before the evection?
No longer any owners redemption period in Colorado.
Effective Jan 1 2008 there is no longer an owners redemption period. The time period between when the "notice of election and demand" is filed has been extended by 75 days.
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