If you don’t pay the real property taxes on your Colorado home, the county treasurer can hold a tax lien sale. You’ll eventually lose the property permanently, though, if you don’t pay off the debt during what’s called a “redemption period” after the sale.

State Foreclosure Laws in Colorado Again, most Colorado foreclosures are nonjudicial, though a court has some minimal involvement. In Colorado, a county public trustee administers the process. In other states, a private trustee generally handles nonjudicial foreclosures.

In Colorado, the non-judicial power of sale foreclosure is carried out as follows: The process begins when the attorney representing the lender files the required documents with the Office of the Public Trustee of the county where the property is located. before the foreclosure sale is scheduled.

For example, 2020 taxes are assessed January 1, 2020, but are not due and payable until January 1, 2021. Property tax statements are mailed once a year in January. Taxes can be paid in a lump-sum payment or in two installments: If paid as a lump-sum, payment in full is due by April 30.

Colorado Foreclosure HOTLINE

1. Colorado Foreclosure HOTLINE. (877) 601-HOPE or (877) 601-4673.
2. Housing counseling agencies – counseling on buying, renting, defaults, foreclosures, credit issues and reverse mortgages.
3. Legal Assistance.

In Colorado, the lender must wait until the debtor is in default for at least 10 days before the lender can send a “right to cure” the default. A “right to cure” simply informs you of your opportunity to make up the missed payments and stop the repossession process in its tracks.

Intent to Cure. Once the foreclosure process has started, a property owner, or another lienholder, may stop the process by “curing” the default. A written Notice of Intent to Cure must be filed with the Public Trustee’s Office no later than 15 days prior to the scheduled sale date.

A defeasance clause is a term within a mortgage contract that states the property’s title (a fancy word for “ownership”) will be transferred to the borrower (mortgagor) when they satisfy payment conditions from the lender (mortgagee).

Granting Clause: The clause in the deed that lists the grantor and the grantee and states that the property is being transferred between the parties.

Defeasance, as its name suggests, is a method for reducing the fees required when a borrower decides to prepay a fixed-rate commercial real estate loan. Instead of paying cash to the lender, the defeasance option allows the borrower to exchange another cash-flowing asset for the original collateral on the loan.

A prepayment penalty clause states that a penalty will be assessed if the borrower significantly pays down or pays off the mortgage, usually within the first five years of the loan. Prepayment penalties serve as protection for lenders against losing interest income.

Lastly, if you want to avoid prepayment penalties, you could just wait until prepayment penalties have phased out before paying off or refinancing your loan. Or, you can make allowable extra payments that are under the limit for how much of your mortgage you can pay back each year without triggering early payoff fees.

A prepayment penalty, also known as a “prepay” in the industry, is an agreement between a borrower and a bank or mortgage lender that regulates what the borrower is allowed to pay off and when. Most mortgage lenders allow borrowers to pay off up to 20 percent of the loan balance each year.

A Step-Down prepayment penalty (aka: declining or fixed prepayment) is a predetermined, sliding scale based on the principal balance of the loan at the time of prepayment and the amount of time which has passed since the loan was closed or the rate was last reset.

Federal law prohibits some mortgages from having prepayment penalties, which are charges for paying off the loan early. For many new mortgages, the lender cannot charge a prepayment penalty—a charge for paying off your mortgage early. These protections come thanks to federal law.

Calculate your prepayment penalty using a percentage of interest. Many lenders charge a prepayment fee based on a percentage of interest paid within a certain time period, perhaps six months. Then, multiply this result by 80 percent to find the prepayment penalty.