The Bank's Choice: Why Colorado is a Dual-Process State
The Reality: Colorado uses a unique hybrid system. While lenders avoid a full trial by using the Public Trustee, they are still forced into court for a Rule 120 Hearing. If the bank fails to secure an "Order Authorizing Sale" from a judge, the Public Trustee cannot legally auction your home.
SYSTEM TYPE
PUBLIC TRUSTEE
HYBRID
HYBRID
The Colorado Public Trustee Timeline
Colorado’s timeline is strictly governed by statute. Unlike private trustee states, the Public Trustee acts as a government check on the lender's power.
| Stage | Timing | Authority Detail |
|---|---|---|
| Notice of Election (NED) | Day 1 | The formal start. Recorded with the County Clerk within 10 days of filing. |
| The Rule 120 Hearing | Day 45-90 | The "Mini-Trial." The lender must prove they have the right to foreclose to a judge. |
| Right to Cure | Day 1 - 110 | You must file an Intent to Cure at least 15 days before the sale date. |
| The Public Sale | Day 110-125 | Auctioned by the Public Trustee. **Homeowners have NO right of redemption after this sale.** |
Authority FAQ: Colorado 2026
Can I stop the sale at the last minute?
Yes, but you must act early. In Colorado, you have a Right to Cure, but you must submit your "Intent to Cure" to the Public Trustee no later than 15 calendar days before the sale. If approved, you have until 12:00 PM (Noon) the day before the sale to pay the arrears.
What happens at a Rule 120 Hearing?
This is your opportunity to challenge the bank's right to sell. The court examines if you are truly in default and if the bank is the "qualified holder" of your note. While not a full trial, it is the primary bottleneck where many lenders fail due to improper paperwork.
Can the bank sue me for a deficiency in Colorado?
Yes. Colorado allows deficiency judgments. If the home sells for less than the debt, the lender can file a separate lawsuit to collect the difference. However, they must prove the bid at auction was a "fair market value" bid.