The pre-foreclosure stage begins when a borrower misses their mortgage payments, leading the lender to initiate the foreclosure process. During this period, the borrower has the opportunity to resolve their delinquency through repayment plans, loan modifications, or selling the property.

In Colorado, the foreclosure process officially starts when the lender files a Notice of Election and Demand (NED) with the county public trustee. This document indicates the lender’s intent to foreclose and includes details about the property and the loan.

If the borrower does not cure the default or negotiate an alternative solution, the property proceeds to a foreclosure auction. The public trustee schedules the auction, typically held weekly, where the property is sold to the highest bidder. RENAV provides data on these auctions, including lender bids and property valuations, to help investors make informed decisions.

After the auction, there may be a redemption period during which the borrower can reclaim the property by paying the full foreclosure sale price plus any additional costs. This period varies depending on the specific circumstances of the foreclosure.

Once the redemption period ends, if applicable, the sale is confirmed, and ownership of the property is transferred to the winning bidder or the lender if no bids exceed the lender’s opening bid. The new owner then receives a confirmation deed from the public trustee.