How to Stop a Foreclosure Sale in Colorado
In Colorado, foreclosure proceedings by mortgage lenders begin when a lender files a Notice of Election and Demand (NED) with the county public trustee. Can you stop a foreclosure at this point? Often, yes. But you have a limited time to act. Submitting a Notice of Intent to Cure or filing for bankruptcy are some of the options that come with hard deadlines. Learn the key deadlines, state and federal legal protections available to you, and practical strategies to stop the foreclosure.
Key Takeaways
Filing for bankruptcy under Chapter 7, 11, or 13 puts an automatic stay in place under 11 U.S.C. § 362(a), with some exceptions. When filed before the sale, this action halts the foreclosure.
For many clients facing foreclosure, Chapter 13 bankruptcy is one of the most effective ways to save their home because it allows them to make payments under a court-approved repayment plan while maintaining regular monthly mortgage payments.
In Chapter 7, Colorado residents have access to the homestead exemption, which protects up to $250,000 of home equity above liens from the trustee’s sale, or $350,000 if the owner, spouse, or dependent is 60 or older or disabled.
Under C.R.S. § 38-38-104, Colorado homeowners can stop a foreclosure sale by filing a written notice of intent to cure no later than 15 calendar days before the sale date and paying the cure amount by 12 p.m. the day before the sale.
If you had a prior bankruptcy case pending within the past year that was dismissed, the automatic stay in a new case may be limited or may not take effect at all.
A lender can ask the bankruptcy court to lift the stay under 11 U.S.C.§ 362(d).
If bankruptcy halts a foreclosure before notice publication is complete, the foreclosure must be withdrawn unless the lender requests a restart within one year of stay relief or case closure under C.R.S. § 38-38-109
The Automatic Stay: How to Stop a Foreclosure Action Immediately
Many homeowners who are significantly behind on their mortgage payments want to know whether filing for bankruptcy will stop a foreclosure on their home. Filing a bankruptcy petition is one approach to help you keep your home.
Under 11 U.S.C. § 362, filing for bankruptcy triggers a federal protection called an automatic stay, which takes effect as soon as the petition is filed, suspending the foreclosure and halting most collection activity. If a lender takes any action that violates the automatic stay, that action is considered void and has no effect.
In cases of imminent foreclosure, we’ll likely file your petition without a repayment plan. We’ll have two weeks to develop it and submit it to the court.
Automatic Stay Limitations
While the automatic stay is a powerful legal tool, it comes with important exceptions and constraints that Colorado homeowners filing for bankruptcy should be aware of, including how long you can delay foreclosure.
Longer Protection for First-Time Filers
Automatic stays remain in place to protect you and your home while the bankruptcy case is pending if this is the first time you’re filing—unless a creditor successfully obtains an order from the bankruptcy court lifting the stay.
Limited Protection for Repeat Filers
One Prior Dismissal - Automatic stays terminate after 30 days if you have had a bankruptcy case dismissed within the past year. The court may grant you an extension if you can convince it that the new bankruptcy case was filed in good faith.
Two or More Prior Dismissals - No automatic stay arises at filing if you have had two or more cases dismissed within the past year. To obtain a stay, you must petition the court and undergo a hearing on the matter in which you demonstrate the most recent case was filed in good faith.
Debtor Ineligibility
The stay isn’t applicable if you are legally barred from filing. This occurs if a prior bankruptcy was dismissed within the last 180 days because you:
Willfully failed to obey the court orders or appear in court, or
Voluntarily requested dismissal after a creditor filed a motion for relief from the stay.
Note that there are strict rules filers must follow if they plan to sell their home before filing for bankruptcy.
Chapter 7 and Chapter 13: Delaying vs. Defeating Foreclosure
Chapter 7 and Chapter 13 can both stop a pending foreclosure, but only one can let you catch up on late mortgage payments.
In Chapter 7, a trustee liquidates (sells) nonexempt assets, and eligible debts are discharged—typically within a few months of filing. The trustee can sell your home if it has equity not protected by Colorado’s homestead exemption. However, the homestead exemption protects up to $250,000 of home equity above liens from the trustee’s sale or $350,000 if the owner, spouse, or dependent is 60 or older or disabled.
In contrast, Chapter 13 restructures your debt into a three- to five-year repayment plan. You cure (catch up on) the mortgage arrears over time and keep your home.
Considerations | Chapter 13 | Chapter 7 |
Triggers automatic stay | Yes—immediately upon filing (some exceptions may apply) | Yes—immediately upon filing (some exceptions may apply) |
Halts a pending foreclosure sale | Yes, if the petition is filed before the sale | Yes, if the petition is filed before the sale |
Mechanism to catch up on mortgage arrears | Yes—through a court-approved repayment plan | No |
Allows debtor to keep the home | Yes—if plan payments are maintained | Only if equity is exempt and the loan is current |
Lender can move to lift the stay | Yes | Yes, and more likely to succeed without a repayment plan |
Best suited for | Homeowners who want to keep the home and can sustain ongoing payments | Eliminating unsecured debt where saving the home is not the primary goal |
What Chapter 13 Requires Before Plan Confirmation
Chapter 13 comes with immediate obligations. Under 11 U.S.C. 1326(a)(1), you must begin making payments within 30 days after whichever happens first: the repayment plan filing or entry of the order for relief. Plan payments go to the Chapter 13 trustee, who holds them until the court confirms or denies the Chapter 13 plan.
What Happens When the Stay Ends
It’s possible that a lender may file a motion for relief from the stay, which is permitted under 11 U.S.C. § 362(d). Common reasons for this include:
The debtor doesn’t have equity in the property
The property isn’t necessary for an effective reorganization
Cause, including a lack of adequate protection for the lender’s interest in the property
Typically, the lender has to select a hearing date within 30 days of filing the motion. If no objection is filed, the court may grant the relief without a hearing once the lender files a Certificate of Non-Contested Matter.
But the stay can also end without a court order. If the bankruptcy case is dismissed or closed, the stay terminates.
When Is It Too Late to Stop Foreclosure?
The sale date is the ultimate deadline to file for bankruptcy, but there are still state cure deadlines to observe. Notably, the notice of intent is due 15 days before the sale, and full payment is due by noon the day prior.
Colorado Does Not Have a Buy-Back Period for Homeowners
Once the property has been sold in foreclosure, the debtor has no right to cure a mortgage default. The Colorado General Assembly amended the foreclosure statutes to remove the post-sale redemption right for most lienholders that previously allowed owners to reclaim their property after a completed sale. This change took effect in 2008. Once the public trustee has conducted the sale, there is no statutory right for the homeowner to cure.
If bankruptcy is not an option or has not yet been filed, Colorado law allows for the following cure process, governed by three strict deadlines under C.R.S. § 38-38-104:
15 calendar days before the sale - File a written notice of intent to cure with evidence of your intent to cure with the public trustee. Miss the deadline and you lose the right to cure for that sale date. If the sale is postponed, you may get a new deadline.
The eighth calendar day before the sale - The lender’s attorney must file a cure statement itemizing all amounts owed. If the lender misses this deadline, the sale is postponed week by week until the statement is filed, up to 12 months from the originally scheduled sale date.
Noon the day before the sale - All cure funds must be paid in full to the public trustee.
Colorado Rule 120: The Court’s Role Before the Sale
To hold a public trustee sale in Colorado, the lender must strictly follow C.R.C.P. 120 to get a court order. If they fail to comply with the rule, the order and the sale are invalid.
The Rule 120 hearing is narrow and only asks the court to consider four factors:
Whether a qualifying default exists under the deed of trust
Whether the Servicemembers Civil Relief Act was satisfied
Whether the party filing for foreclosure has legal standing
Whether the status of any loan modification request bars the sale as a matter of law
A Rule 120 order is not an appealable final judgment. It is entered without prejudice to any aggrieved person’s right to seek injunctive relief or other relief in a court of competent jurisdiction. However, Rule 120 notices state that filing a complaint with the Colorado Attorney General or the CFPB about single-point-of-contact or dual-tracking violations will not stop the foreclosure process.
When to Talk to a Colorado Bankruptcy Attorney
If a foreclosure sale has been scheduled on your home and you are trying to understand whether bankruptcy or another legal remedy can stop it, an attorney who regularly handles these cases can give you clarity. Legal guidance is most valuable when:
A foreclosure sale date is already on the calendar and the 15-day cure window is approaching or has passed
You have had prior bankruptcy cases dismissed and are uncertain whether a new filing will trigger the automatic stay
A lender has filed—or threatened to file—a motion for relief from the stay
You’re not sure whether Chapter 7 or Chapter 13 is the right legal tool for your situation
You have received a Rule 120 notice and do not know whether or how to respond
The one-year window following stay relief or case dismissal is approaching and you’re unsure whether the foreclosure must be withdrawn
At Robinson & Henry, our Bankruptcy Team represents Colorado homeowners navigating urgent foreclosure situations, including Chapter 13 bankruptcy filings designed to stop a scheduled sale and create a path to catching up on missed payments. We understand there are a lot of fast-moving parts and how much is at stake when it comes to your home. Call 303-688-0944 or book a consultation online 24/7 to get started.
Yes—if the petition is filed before the sale occurs, the automatic stay under 11 U.S.C. 362(a) generally takes effect immediately upon filing, halting the sale. The sale cannot lawfully proceed while the stay is in effect—any action taken in violation of the stay is void. However, if you have had prior bankruptcy cases dismissed within the past year, the stay may be limited or may not arise automatically, requiring a prompt court motion.
Curing a default under C.R.S. 38-38-104 means paying everything you owe—past-due payments, late charges, and the lender’s allowable fees and costs, plus the public trustee’s fees by 12 noon the day before the sale. Bankruptcy, particularly Chapter 13, allows you to catch up on arrears over time through a court-approved repayment plan while maintaining regular monthly mortgage payments.
Under Colorado law, the right to cure expires at 12 noon the day before the foreclosure sale. There is no post-sale cure right, and the owner’s post-sale redemption right was eliminated by legislation that took effect in 2008. As a practical matter, the notice of intent to cure must be filed at least 15 calendar days before the sale, and bankruptcy must be filed before the sale date to stop it through the automatic stay.
Yes. A lender can file a relief request under 11 U.S.C. 362(d) and ask the bankruptcy court for permission to proceed with the foreclosure. If the lender doesn’t request a foreclosure restart from the public trustee within one year after an order granting stay relief or dismissing or closing the case, the foreclosure must be withdrawn under C.R.S. 38-38-109.
Rule 120 provides a limited hearing. The court’s inquiry is restricted to whether a qualifying default exists, whether the Servicemembers Civil Relief Act was followed, and whether the foreclosing party is the real party in interest, which bars the sale as a matter of law. It is not a full evidentiary proceeding, and filing a response alone does not stop the sale.
The automatic stay rules change significantly for repeat filers, though both require prompt action. One prior case pending within the past year and dismissed limits the stay in the new case to 30 days, unless, after a hearing, the court extends the stay on a showing of good faith. Two or more cases pending within the past year and dismissed mean no automatic stay arises at all—you must ask the court to impose one within 30 days of filing.
Yes, usually, but only temporarily. Filing bankruptcy triggers an automatic stay under 11 U.S.C. 362. The stay halts most collection actions, including foreclosure, as soon as the petition is filed. Whether it permanently saves the home depends on whether the delinquency is cured through a Chapter 13 plan or otherwise addressed.