Are you currently facing foreclosure in Pueblo?Falling behind on mortgage payments is a stressful experience, but understanding the timeline and your rights can help you regain control. In Pueblo Colorado, the foreclosure process is unique because it primarily involves a Public Trustee( like the pueblo public trustee) rather than just a private bank or a lengthy court trial.
Here is a breakdown of how the Pueblo Colorado Foreclosure process works and answers to the most common questions we hear from local Pueblo homeowners.
The Colorado Foreclosure Timeline
Colorado is primarily a non-judicial foreclosure state. This means your lender doesn’t necessarily have to sue you to take the home back, provided they follow a specific statutory process:
- The Demand Letter (Pre-Foreclosure): Typically, after 1–3 missed payments, your lender will send a “Notice of Intent to Cure.” By law, they must send this at least 30 days before taking further action.
- The NED (Notice of Election and Demand): This is the formal “start” button. The lender’s attorney files this with the County Public Trustee. Once recorded, your home is officially in foreclosure.
- The Sale Date: For most residential properties, the Public Trustee sets a sale date between 110 and 125 days after the NED is recorded. (Agricultural properties have a longer window of 215–230 days).
- Rule 120 Hearing: A judge must still sign off on the sale. This hearing is limited—it mostly confirms that you are actually in default and not protected by the Servicemembers Civil Relief Act.
- The Auction: If the debt isn’t resolved, the home is sold at a public auction (usually on Wednesdays).
Top 5 Frequently Asked Questions (FAQs)
1. Can I stop the foreclosure once it has started?
Yes. In Colorado, you have a legal “Right to Cure.” You can stop the process by paying the past-due amount, plus interest and fees, to bring the loan current.
- The Deadline: You must file a “Notice of Intent to Cure” with the Public Trustee at least 15 days before the scheduled sale date.
- Resource: Pueblo County Public Trustee
2. How long can I stay in my house?
You own your home until the moment it is sold at the Public Trustee auction. Even after the sale, the new owner must go through a formal eviction process if you haven’t moved out, which can take several weeks. However, it is always better to move on your own terms before an eviction is filed on your record.
3. What is a “Rule 120” hearing?
This is a court procedure where the lender asks a judge for an “Order Authorizing Sale.” It isn’t a full trial; the court only checks if you are in default and if the lender has the right to foreclose. If you have a legitimate defense (e.g., you aren’t actually behind on payments), this is your chance to speak up.
4. Will I still owe money after the house is sold?
Possibly. If the house sells for less than what you owe the bank, the lender may sue you for the difference. This is called a Deficiency Judgment. Selling the home yourself (or to a home buying company) before the auction can often prevent this.
5. Where can I get free, professional help?
Colorado has excellent resources for homeowners. You can speak with a HUD-approved housing counselor for free to explore loan modifications, short sales, or repayment plans.
- Resource: Call the Colorado Foreclosure Hotline at 1-877-601-HOPE (4673) or visit Colorado Housing Connects.
Your Options Moving Forward
If you are facing foreclosure, you have three main paths:
- Reinstatement: Paying the “Cure” amount to keep your home.
- Loan Modification: Working with the bank to change your loan terms.
- Selling the Property: Selling the home to pay off the debt and potentially walk away with cash and a cleaner credit report.
Want to know what your home could sell for in its current condition? We help Pueblo Colorado homeowners by providing fast, cash offers to help them avoid the foreclosure auction.
Disclaimer: This post is for informational purposes only and does not constitute legal or financial advice. We recommend consulting with an attorney or a HUD-approved counselor regarding your specific situation.