For the most part, a borrower must be three or more payments delinquent on payments before most lenders will initiate the foreclosure process. This is considered the pre-foreclosure time period in which the mortgage company and it’s legal team will initiate warnings and “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 within the respective county.
After receiving a 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 time 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 deal is reached before this time, the property will proceed to auction.
There is no longer an owner of the home; there is a redemption period in the state of Colorado and the homeowner should prepare to leave the property shortly after the sale.
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