Colorado is a non-judicial foreclosure state, with one built-in court step that other non-judicial states do not require. The lender does not file a lawsuit to foreclose. Instead, the case runs through a county official called the Public Trustee. But before that official can sell the property at auction, a district court judge must issue an Order Authorizing Sale after a limited hearing. So the answer to whether Colorado is a judicial or non-judicial foreclosure state is: non-judicial in structure, with a mandatory judicial checkpoint in the middle.
The Hybrid Framework
The non-judicial process is set out in C.R.S. § 38-38-100.3 and the sections that follow it.1Justia. Colorado Revised Statutes Section 38-38-100.3 – Definitions Standard Colorado deeds of trust grant the property interest to the Public Trustee and include a power-of-sale clause. That combination is what allows a lender to foreclose administratively rather than by filing a civil suit.
The judicial piece comes from Rule 120 of the Colorado Rules of Civil Procedure. Since January 1, 2008, no Public Trustee sale can go forward until a district judge issues an Order Authorizing Sale, and a sale held without that order is invalid.2Justia. Colorado Revised Statutes Section 38-38-105 – Court Order Authorizing Sale Mandatory That is why Colorado is often described as a hybrid: the paperwork and the sale live outside the courts, but the go-ahead does not.
Why the Public Trustee Matters
Every Colorado county has a Public Trustee. This is a government-appointed or elected official, not a private company chosen by the lender. When you sign a deed of trust, the property interest is granted to that official, who holds it until the loan is paid off or, on default, runs the foreclosure sale.
The distinction matters when comparing Colorado to other non-judicial states. In many of them, a private trustee named by the lender handles the process, with no neutral middleman. Colorado’s Public Trustee verifies the documentation, sends the required notices, sets the sale date, and processes any cure payment from the borrower. Centralizing those duties in a public office builds in a layer of accountability that a lender-selected trustee does not provide.
What the Rule 120 Hearing Actually Decides
The court hearing built into Colorado’s process is narrow by design. A Rule 120 judge looks at only two questions: whether there is a reasonable probability that a default occurred, and whether the Servicemembers Civil Relief Act bars the sale.3Colorado Judicial Branch. Information for Rule 120 Respondents
If you receive notice of a Rule 120 proceeding, your defenses are limited to a short list:
- You are actually current on payments, or the debt has been satisfied.
- You are an active-duty servicemember with SCRA protection on a pre-service mortgage.4Office of the Law Revision Counsel. 50 USC 3953 – Mortgages and Trust Deeds
- The party filing the motion does not actually hold the note and lacks standing to foreclose.
What Rule 120 will not entertain is a full contract dispute. Claims about predatory lending, fraud in the origination of the loan, or inability to pay are outside the scope of the hearing.3Colorado Judicial Branch. Information for Rule 120 Respondents Those claims have to be raised in a separate lawsuit. That is the practical difference between Colorado’s hybrid system and a fully judicial foreclosure state, where all defenses can be litigated in the same case.
The Process a Non-Judicial Foreclosure Follows
Understanding the classification is easier once you see the sequence.
Before anything starts, federal servicing rules require the borrower to be more than 120 days delinquent before the servicer can file the first notice under state law.5eCFR. 12 CFR 1024.41 – Loss Mitigation Procedures A complete loss mitigation application during that window, or one submitted more than 37 days before a scheduled sale, freezes the process while the servicer reviews it.
The lender then files a Notice of Election and Demand with the Public Trustee in the county where the property sits. The filing includes the deed of trust, the promissory note, and documentation of the default. Once recorded, the Public Trustee issues a Combined Notice to the borrower with the scheduled sale date, the amount owed, and information on the right to cure.
The right to cure is a real off-ramp inside the non-judicial framework. You must file a Notice of Intent to Cure with the Public Trustee no later than 15 calendar days before the sale.6Justia. Colorado Revised Statutes Section 38-38-104 – Right to Cure The Public Trustee then produces a cure statement listing the exact dollars needed to bring the loan current, including missed payments, late fees, and legal costs. Paying that amount before the sale stops the foreclosure and reinstates the original loan terms.
For residential property, the sale is scheduled 110 to 125 calendar days after the Notice of Election and Demand is recorded. Agricultural property runs on a longer timeline of 215 to 230 days. Somewhere inside that window, the Rule 120 hearing takes place. At the auction, held at the Public Trustee’s office, the lender submits a written bid, and the winning bidder receives a Certificate of Purchase, which is recorded within five business days.7Justia. Colorado Revised Statutes Section 38-38-401 – Certificate of Purchase – Issuance
After the sale, homeowners have no right of redemption for any foreclosure filed on or after January 1, 2008. Junior lienholders do have redemption rights in priority order, with the most senior junior lienholder getting a window that starts 15 to 19 business days after the sale.8Justia. Colorado Revised Statutes Section 38-38-302 – Redemption by Lienor – Procedure If no lienholder redeems, the Public Trustee issues a Confirmation Deed transferring title to the purchaser.
When Colorado Uses a Fully Judicial Foreclosure
The non-judicial route depends on the loan documents. If a mortgage or deed of trust does not contain a power-of-sale clause, the lender cannot use the Public Trustee process and must file a traditional judicial foreclosure lawsuit in court. In practice, this is uncommon because almost all Colorado residential loans are written as deeds of trust with the power-of-sale language, but the option is not gone. If you are looking at older paperwork or an unusual loan, checking for a power-of-sale clause tells you which track your case would take.
For the typical homeowner, though, the classification stands: Colorado forecloses non-judicially through the Public Trustee, and the only court involvement is the Rule 120 order authorizing the sale.