Colorado has made headlines in past months as the reluctant recipient of the dubious honor of being the nation’s foreclosure capital. Foreclosures in Colorado were the highest among all 50 states for both the second and third quarters of 2006. Colorado foreclosures are on track to rise 25 percent in 2007, to an estimated 36,000, according to data released May 9 by the state Division of Housing. Colorado foreclosures rose 110 percent between 2003 and 2006. There is no doubt that the situation appears bleak and many Colorado resident homeowners have found themselves in a bad spot.

County public trustees administer foreclosures in Colorado. They are responsible for guarding the rights of homeowners as well as home loan providers and other legitimate creditors. It isn’t all bad news for the distressed homeowner in trying to stop a Colorado home foreclosure. For the homeowner wanting to stay in the home as long as possible, while working at ways to stop foreclosure, Colorado has laws in effect that favor the homeowner by giving them lots of time to try to keep or sell to avoid the damage to their credit.

Homeowner deciding to give their house back to the lender in Colorado will find the foreclosure laws have statutory time lines. In this instance a “deed in lieu of foreclosure” can be accomplished much quicker, once both parties agree to the timing. The downside with this choice is, though not as damaging to the credit as a foreclosure, it does cause a significant drop in the FICO score for a number of years. Colorado foreclosure laws are fairly straight-forward. Homeowners enjoy seemingly more protection there than in some other states. Nevertheless, as it would be in any other state, it is always in the best interests of the homeowner seeking help with stopping foreclosure to take immediate action.

Kentucky requires that an appraisal of the property be conducted. If the highest bid price at the foreclosure happens to be less than two thirds of the appraised value of the home owner is given a 12 month right of redemption. This means that they have twelve months following the sale to come up with the sale price the home was sold for plus interest. If they choose to do this and if they can pay that much money in that given twelve months, then they can regain ownership of the home. If, in this state, the homeowner was personally served with a lawsuit or failed to answer the lawsuit, then deficiency judgment may be sought by the bank. Deficiency judgments are rarely sought in such cases. If the former home owner does have other assets or property which could be used to pay this deficiency, the bank will pursue this avenue if it can.

In the typical foreclosure used in this state, the 1st step is that the bank’s lawyer files a complaint along with a notice of pending action called a “Lis Pendens” This is simply a public announcement of the bank’s intention to sell the home. Next, the sheriff of the county in which the home is located will deliver the notice of pending action to the homeowner. Then, this person is given twenty days to respond to this notice. If the homeowner does not respond to this notice, the bank will request that the court make a ruling in the case.

The sale typically occurs one month after the court has ruled against the homeowner. A notice of sale must be advertised or published in a local newspaper with circulation in the county where the home is located. This ad or notice must contain the place and terms of the sale along with the date it will be held. This ad must be run once a week for three weeks leading up to the scheduled sale date.

Most all foreclosure sales in this state are held at the courthouse of the county in which the home is located. The sale is conducted by a court official. This person’s title is the master commissioner. The sale is held auction style, with the home being awarded to the highest bidder at the sale. This winning bidder needs to either pay the amount bid in cash or post a bond to pay in installments. After the sale is complete, a motion to confirm the sale is by the court. Following this hearing, the deed is prepared and presented to the clerk of the court.