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Free Guide to Hiring a Real Estate Lawyer
Mortgage law covers the legal rules that govern home loans, lender rights, borrower obligations, and the remedies available when a borrower defaults. In Denver, as in the rest of Colorado, mortgage matters are shaped by a mix of federal consumer finance laws and state statutes and procedures. Many residential loan documents in Colorado are secured by a deed of trust that contains a power of sale, which allows lenders to pursue nonjudicial foreclosure through the county public trustee. Other loans may use a traditional mortgage document that requires a judicial foreclosure. Because procedures, timelines, and remedies vary depending on the document, the loan terms, and whether federal protections apply, it is important to understand both the contractual terms in your loan papers and the governing law.
Mortgage issues can involve complex legal, factual, and procedural questions. You may need a lawyer if you are facing any of the following situations:
- You have received a notice of default or a foreclosure-sale notice.
- You believe the lender or servicer made errors in payment accounting, applied fees improperly, or violated federal rules such as TILA or RESPA.
- You are negotiating a loan modification, short sale, or deed in lieu of foreclosure and want to protect your rights and tax position.
- You suspect predatory lending, fraud, or servicing misconduct.
- You are considering bankruptcy to stop a foreclosure or to address secured and unsecured debts.
- There are title problems, competing liens, or disputes with a homeowner association or taxing authority.
- You inherited property subject to a mortgage and need to understand options and obligations.
An experienced mortgage or real estate attorney can evaluate your documents, explain relevant deadlines, represent you in court or in loss-mitigation negotiations, and help you choose the strategy that best protects your interests.
Key local and state features that affect mortgage matters in Denver include the following:
- Public trustee system - Colorado counties use a public trustee process for nonjudicial foreclosures conducted under a deed of trust with a power of sale. The public trustee administers notices, schedules foreclosure sales, and conducts the sale for the benefit of the lender.
- Deed of trust versus mortgage - Many Colorado loans are secured by a deed of trust rather than a mortgage. A deed of trust typically permits nonjudicial foreclosure. A mortgage generally requires a judicial foreclosure action to obtain a decree and sale.
- Notice and cure rights - State law requires specific notices before a public trustee foreclosure sale. Borrowers may have opportunities to reinstate the loan or cure the default prior to the sale date, depending on the loan documents and the timing.
- Deficiency judgments - In some circumstances a lender may seek a deficiency judgment against a borrower after a foreclosure sale. Colorado law and case law impose limits and procedural steps for pursuing deficiencies; the availability of a deficiency judgment depends on the foreclosure method and the facts of the case.
- Statutes and federal protections - Federal laws such as the Truth in Lending Act, Real Estate Settlement Procedures Act, and consumer protections enforced by the Consumer Financial Protection Bureau affect disclosures, servicing practices, and loss-mitigation procedures. Colorado statutes also regulate real estate brokers, mortgage lenders, and foreclosure practices.
- HOA and tax liens - County property tax liens have very high priority and can lead to separate tax foreclosure procedures. Homeowner association liens may also affect ownership and can lead to foreclosure under HOA rules; priority and remedies can vary, so consult an attorney if multiple liens are involved.
- Bankruptcy interplay - Filing bankruptcy triggers an automatic stay that temporarily stops most foreclosure actions. How bankruptcy affects your mortgage and whether you can keep your home depends on the chapter filed and the equity in the property.
Because state procedures and local practices matter, seek advice from someone familiar with Denver and Colorado foreclosure and mortgage practice.
A mortgage and a deed of trust are both security instruments that secure a loan with real estate. In Colorado many lenders use deeds of trust that name a trustee and include a power of sale - this allows the lender to foreclose nonjudicially through the county public trustee. A mortgage typically requires the lender to file a judicial foreclosure action in court. The choice of instrument affects the procedural steps and timelines for foreclosure.
There is no single answer because timelines vary with the type of security instrument, whether the foreclosure is nonjudicial or judicial, and whether the borrower contests the foreclosure or files bankruptcy. Nonjudicial foreclosures administered by the public trustee can take several months from the first notice of default to sale, but delays can extend the process. Judicial foreclosures often take longer because they go through the court system. If you receive foreclosure notices, act quickly and consult an attorney to understand deadlines.
Possible options include reinstating the loan by paying amounts owed before the sale date if the loan documents allow, obtaining a loan modification or other loss-mitigation agreement with the servicer, filing bankruptcy to trigger an automatic stay, or contesting the foreclosure based on procedural or substantive defects. The availability and advisability of each option depend on your situation and timing. Do not ignore notices - contact an attorney or housing counselor immediately.
A loan modification is a permanent change to one or more terms of your mortgage - for example interest rate, amortization period, or principal balance - intended to make payments more affordable. Eligibility depends on the lender's loss-mitigation criteria, your financial situation, and whether you submit required documentation. Lenders and servicers have specific processes and deadlines, so document all communications and consider legal help when negotiating modifications.
A short sale is a sale of the property for less than the mortgage balance with the lender's approval - the lender typically agrees to accept proceeds and may forgive part of the debt. A deed in lieu of foreclosure is a negotiated transfer of title to the lender to avoid foreclosure. Both options have pros and cons - tax consequences, deficiency exposure, and impacts on credit differ. An attorney can help negotiate terms and protect you from unexpected liabilities.
In some cases lenders may pursue deficiency judgments to recover the remaining balance after a foreclosure sale. Whether a deficiency is available depends on whether the foreclosure was nonjudicial or judicial, the wording of the security instrument, and Colorado law. There may be procedural limits and defenses available. Consult a lawyer to determine the risk of a deficiency claim in your case.
Keep a detailed record of all communications, save all notices and statements, and send written requests for clarification or correction using certified mail if possible. Federal laws require certain servicing responses, and you can file complaints with state regulators or federal agencies. If errors continue or you face imminent loss of your home, contact an attorney experienced in mortgage servicing disputes to protect your rights.
Filing bankruptcy triggers an automatic stay that temporarily halts most foreclosure actions and collection efforts. Whether bankruptcy allows you to keep your home depends on the chapter filed, your equity, your ability to catch up on missed payments, and the lender's actions. Bankruptcy can provide time to negotiate a loan modification or other solution, but it has long-term credit consequences. Discuss options with a bankruptcy attorney before filing.
Property tax liens generally have priority over mortgages and can lead to separate tax foreclosure processes that may extinguish mortgage rights in some cases. HOA liens can also create enforcement rights and, in some scenarios, may have priority to a limited extent. The interplay between liens can be fact-specific. If there are multiple liens on your property, consult an attorney to understand priority, risks, and defenses.
Several organizations provide legal assistance or referrals for low- and moderate-income homeowners or people facing foreclosure. Look for legal aid organizations, HUD-approved housing counseling agencies, and local bar association lawyer-referral services. These resources can help you understand your options and may provide limited-scope representation or referrals to attorneys experienced in mortgage and foreclosure law.
When you need more information or assistance, consider contacting or researching the following types of organizations and agencies:
- County public trustee office in the county where the property is located - for foreclosure sale dates and public trustee procedures.
- Colorado Division of Real Estate - for licensing and regulation of brokers and mortgage professionals.
- Colorado Bar Association and Denver Bar Association - for lawyer referrals and information about finding an attorney experienced in mortgage and foreclosure law.
- Colorado Legal Services and other legal aid organizations - for free or low-cost legal assistance depending on eligibility.
- Colorado Attorney General - consumer protection division for complaints about unfair lending or servicing practices.
- Consumer Financial Protection Bureau and U.S. Department of Housing and Urban Development - for federal housing counseling resources and information about your rights under federal mortgage laws.
- HUD-approved housing counseling agencies and nonprofit housing counselors - for loss-mitigation counseling and assistance completing paperwork for lenders.
Contact these organizations early if you are at risk of foreclosure or have servicing problems. They can help you understand your options and connect you with legal help.
If you need legal assistance with a mortgage matter in Denver, consider the following practical steps:
- Gather documents - collect the note, deed of trust or mortgage, payment history, foreclosure notices, correspondence with the servicer, tax and HOA notices, and any loan modification materials.
- Note deadlines - identify any sale dates, court dates, or deadlines to submit loss-mitigation paperwork. Missing a deadline can limit your options.
- Contact your servicer - ask for a written statement of the amount needed to reinstate, and request a list of documents needed for loss-mitigation. Keep written records of all communications.
- Seek legal help - consult a lawyer who handles mortgage and foreclosure matters. Use bar association referrals, legal aid, or a private attorney. Ask about initial consultation fees, possible fee arrangements, and the lawyer's experience with Denver and Colorado foreclosure practice.
- Consider alternatives - discuss loan modification, short sale, deed in lieu, or bankruptcy with your attorney and housing counselor to determine the best path for your situation.
- Preserve evidence - keep copies of payments, letters, emails, and proof of service communications. If you believe there was abuse or illegal conduct, documentation will help your attorney build a case.
Act promptly and do not ignore foreclosure notices. Early, informed action increases your options and the likelihood of achieving a favorable outcome. A qualified attorney can explain the specifics of Colorado law as applied to your case and represent your interests in negotiations or court proceedings.
