Chapter 8 - § 8.1 • INTRODUCTION

• Jurisdiction: Colorado

§ 8.1 • INTRODUCTION

Foreclosure is a lender or other creditor-initiated process that extinguishes a borrower's ownership interest in a particular piece of property and seeks to satisfy an outstanding debt through the proceeds of a forced sale or by granting ownership rights to the foreclosing lender. In Colorado, there are two types of foreclosures: (1) public trustee foreclosures, governed by C.R.S. §§ 38-38-101 to 38-38-704; and (2) judicial foreclosures brought pursuant to C.R.C.P. 105.

Public trustee foreclosures are administrative in nature and are limited to those instances where the lender's interest is secured by a deed of trust to the public trustee and conferring the power of sale. Judicial foreclosures, on the other hand, may be brought to foreclose any lien, including a deed of trust to a public or private trustee. They are adjudicative in nature and frequently pled...