Detailed Answer
Confirm Co-Owner Consent and Authority
In Colorado, all co-owners must agree to list and sell the property. If a co-owner refuses, you can file a partition action under C.R.S. § 38-31-101 (Partition Actions).
Review the Foreclosure Process and Timeline
Most Colorado foreclosures follow a nonjudicial process under C.R.S. § 38-38-101 et seq. If your lender pursues a judicial foreclosure, the court schedules a hearing at least 35 days after service. Selling before that hearing stops the foreclosure.
Order a Title Search and Clear Liens
Obtain a title commitment early. Identify mortgages, tax liens, or judgments. Request payoff statements. Clear or negotiate encumbered liens at closing unless the buyer agrees to assume them.
Obtain an Appraisal and Set a Realistic Price
Hire a licensed appraiser. Market data supports your asking price. A competitive price encourages quick offers.
Hire a Skilled Real Estate Agent
Work with an agent experienced in short sales and pre-foreclosure sales in Colorado. They handle paperwork, negotiate with lenders, and market the property efficiently.
Negotiate a Short Sale or Payoff Agreement
If you owe more on the mortgage than the home’s value, submit a hardship package to the lender. Colorado law requires lenders to honor approved short sale agreements and acknowledge receipt per C.R.S. § 38-35-109 (Right of Redemption).
Close the Sale and Stop the Foreclosure
At closing, instruct the title company to disburse funds to lienholders. Obtain written confirmation that the lender will cancel the foreclosure once they receive payoff.
Helpful Hints
- Gather all co-owner signatures before listing.
- Order a title report within the first week of listing.
- Perform repairs and staging quickly to boost appeal.
- Forecast lender review timelines—short sales often take 30–60 days.
- Maintain transparent communication with all parties.
- Keep backup offers in mind if the first sale falls through.
- Have a real estate attorney review closing documents.
Disclaimer: This article is for informational purposes only and is not legal advice. Consult a qualified real estate attorney in Colorado for guidance tailored to your situation.