Typically, a borrower must be three or more months delinquent on payments before entering the foreclosure process. This is the pre-foreclosure time period in which a mortgage company and its legal department will send warnings and possibly “intent to foreclose” letters.
After three months of missed payments, the mortgage company will file a Notice of Election and Demand (NED) with the public trustee from the respective county. This notice is sent to the homeowner, marking the beginning of the official foreclosure process. The NED will contain information about the foreclosing attorney, who represents the mortgage company, as well as the public auction sale date set for the property.
Following the NED, a homeowner will receive notice of a Rule 120 hearing with the district county court. This hearing determines a mortgage company’s legal right to initiate the foreclosure process on a delinquent loan. This is also the cure period for the mortgage, during which a homeowner must submit an “intent to cure” notice with the public trustee.
To cure the loan, all sums due must be paid to the public trustee via certified funds no later than noon on the day before the public auction. If no intent to cure or workout is reached before this time, the property will go to sale.
Following the public auction, the homeowner “may” be evicted from the property. There is no longer an owner-redemption period in the state of Colorado, and the homeowner should prepare to leave the property shortly after the sale.