Colorado Renters' Rights in Property Being Foreclosed
The following information is made available by Brian L. A Wess as a public service and is issued to inform, not to advise. No person should attempt to interpret or apply any law without the assistance of an attorney. The information provided here has been gathered from multiple sources including Colorado Legal Services and the El Paso County Office of the Public Trustee. Opinions expressed in this communication are those of the authors and not those of Brian L. A. Wess or his affiliates. It is intended as general information only, and is not meant as legal advice for any specific situation. If you need legal advice, consult an attorney.
Additional information about the Colorado foreclosure process can be obtained from the Colorado Revised Statutes, Articles 37, 38, and 39.
If you need advice on this or any other legal problem, contact an attorney of your own choosing. If you cannot afford an attorney, contact Colorado Legal Services: 303-837-1321.
Information on Temporary Federal Law
Effective May 20, 2009 thru December 31, 2012
See Information Video: Click Here
(Courtesy Colorado Legal Services)
Frequently Asked Questions (Before and After Temporary Federal Law)
Q: What are my rights during the time my landlord's property is being foreclosed?
A: When the home you are renting is in foreclosure, the owner (your landlord) continues to own the property until the foreclosure sale. That period will be extended if your landlord files bankruptcy. Once the foreclosure is complete, there will be a new owner of the property. You should know that the new owner does not have to continue renting to you. But, you may you wish to discuss a new rental agreement with the new owner, or ask for additional time to move. Any agreement made should be put in writing.
Q: What are my responsibilities?
A: Even though the property you are renting is in foreclosure, you still are responsible for paying rent to the landlord. If it has a written assignment of rents, the mortgage company may try to collect rent from you. If the mortgage company attempts to collect the rent from you, ask for a copy of a written document which gives the mortgage company the authority to collect the rent.
Q: What about my security deposit?
A: Landlords who are in this financial position are frequently unable to return security deposits. Colorado law requires that your landlord either return your security deposit or send you a letter explaining why he is withholding it. This must be done within 30 days after you move out, or 60 days if the lease you signed with the landlord states 60 days.If you are worried that your landlord will not return your security deposit, you may want to try to bargain with him and ask if he can return it to you immediately. You could also ask if he would allow you to apply the security deposit against your last month's rent. Put any agreement you make with your landlord in writing.
Q: The new owner wants me to leave the property. What rights do I have?
A: When the new owner takes title to the property (he/she now owns the property), you may be asked to leave. If the new owner is not willing to enter into a new lease with you and wants you to move, the new owner will give you a three day notice to move. If you do not move, the new owner may bring an eviction action against you. If this happens you will get a "Summons and Complaint" from the court and will have an opportunity to "Answer" it and appear in court.
If you need advice on this or any other legal problem, contact an attorney of your own choosing. If you cannot afford an attorney, contact Colorado Legal Services: 303-837-1321.
If your property is in or nearing foreclosure and you can contact the Colorado Foreclosure Hotline at http://www.ColoradoForeclosureHotline.org or 1-877-601-HOPE.
Reviewed 10-15-09