Colorado uses non-judicial foreclosure with a unique Rule 120 hearing process. 110-125 day timeline. Instead of an Answer, file a civil lawsuit in CO District Court.
Rush response within 24 hours
Colorado uses non-judicial foreclosure under C.R.S. § 38-38-101 with a unique Rule 120 hearing before the sale. NOD + 110 days + NTS + publication. You must file a civil lawsuit to stop the sale.
Rule 120 Hearing — Respond
The lender must get court authorization through a Rule 120 hearing. You receive notice and can respond. This is your chance to challenge the foreclosure order.
File Independent Lawsuit in District Court
Even if Rule 120 is granted, file a separate civil action in the District Court. Filing fee: $225-$400.
| Type | Non-Judicial (C.R.S. § 38-38-101) |
| NOD Period | 110 days minimum |
| Rule 120 | Court hearing required before sale |
| Court | CO District Court |
| Filing Fee | $225-$400 |
Colorado's non-judicial process moves fast. Here are the key steps to protect your rights and respond to the Rule 120 hearing.
Colorado foreclosure begins with a Notice of Election and Demand (NED) filed by the lender and recorded with the Public Trustee. You will receive a Rule 120 hearing notice. Review all documents for the amount owed, the property, and the hearing date. Your window to respond is limited, so act immediately.
The Rule 120 hearing determines whether the lender has the legal right to foreclose. You can challenge the existence of the deed of trust, the note, or whether there is a valid default. This is not the place for full defenses, but it is critical to appear and object to the foreclosure order.
Appear at the Rule 120 hearing in District Court on the scheduled date. The court will decide whether to authorize the Public Trustee to proceed with the foreclosure sale. Even if you believe the lender will prevail, appearing preserves your rights and keeps the process from moving silently against you.
Because Colorado foreclosure is non-judicial, the Rule 120 hearing alone won't give you a place to present all your defenses. With a few limited exceptions, you must file a separate civil lawsuit in District Court to stop the sale and litigate claims like improper procedures, payment disputes, or violations of the Colorado Consumer Protection Act.
The foreclosure sale is set by the Public Trustee, typically 110 to 125 days after the NED is recorded. Once the property is sold at auction, stopping the process becomes far more difficult. If you want to pursue litigation or a loan modification, you must act before the sale date.
Colorado homeowners can challenge a foreclosure through a separate lawsuit or by disputing the Rule 120 order. These defenses are commonly raised.
The entity seeking foreclosure must actually hold the note and deed of trust. Securitization errors, forged or mismatched assignments, and missing endorsements are common challenges in Colorado.
Colorado has strict rules for NED filing, notice, publication, and the sale. Any deviation from the statutory requirements (C.R.S. § 38-38-101) can void or stay the foreclosure.
If the lender failed to apply payments correctly, imposed improper fees or force-placed insurance, or can't prove the default amount, you can challenge the debt in the Rule 120 hearing or a separate suit.
Deceptive practices by lenders or servicers during the foreclosure process may support claims under the Colorado Consumer Protection Act, potentially including damages and attorney's fees.
Federal and state rules require servicers to consider loss mitigation and loan modification applications in good faith before completing a foreclosure sale. Failure to do so can support a claim.
Colorado law provides certain rights to cure the default and redeem. Understanding your cure rights under C.R.S. § 38-38-104 can sometimes stop the sale or allow you to keep your home.
Not sure which defense applies to your situation?
Get a Free Case ReviewUnderstand the timeline and the options available to you at each stage so you can make informed decisions.
The foreclosure process officially begins when the lender records the NED with the Public Trustee. You'll receive notice of the foreclosure and the upcoming Rule 120 hearing.
The court reviews whether the lender has the right to foreclose. You can contest the note, deed of trust, or default. If the court authorizes the sale, the process continues toward auction.
If no lawsuit halts the process, the Public Trustee conducts the foreclosure sale at auction. The property is sold to the highest bidder, often the lender.
After the sale, you may have limited redemption rights depending on the circumstances. Acting before the sale is almost always the better strategy.
Loan modification, forbearance, short sale, or deed in lieu can often be negotiated before the sale. The earlier you engage, the more options you have.
Start NegotiatingYour separate District Court lawsuit must be filed before the sale to stop it. A foreclosure defense attorney can help you meet critical deadlines.
File Your LawsuitMany CO homeowners don't realize a Rule 120 hearing is scheduled and ignore the notice. If you don't appear, the court can authorize the sale without your input — and you lose a chance to object.
The sale is typically only 110–125 days from the start. Because CO is non-judicial, you must file a separate lawsuit to stop the sale. By the time the sale happens, your options are severely limited.
Unlike judicial states, Colorado doesn't give you a single Answer form. Understanding that your defense happens through the Rule 120 hearing and a separate court action is essential.
CO foreclosure is procedural and fast-moving. Missing a notice or deadline — or filing your lawsuit incorrectly — can cost you your home.