Colorado Renter Rights During Foreclosure Explained

Facing foreclosure as a renter in Colorado can be stressful and confusing. It's important to know that renters do have rights under state and federal law, even when their landlord loses the property. Understanding your protections and your responsibilities can help you make informed decisions and maintain your housing during this challenging process.

What Happens When a Rental Home Enters Foreclosure?

If the property you rent is going through foreclosure, this means the mortgage lender (often a bank) is taking legal action to take back ownership of the home because the landlord has defaulted on their loan. In Colorado, foreclosures follow a process regulated by state law, and the outcome affects both the property owner and any current tenants.

• Foreclosure does not immediately end your lease or rental agreement.
• You have rights to advance notice and, in many cases, the right to remain for a set period—even after foreclosure is completed.

Your Rights as a Renter During Foreclosure

Notice to Vacate: The 90-Day Rule

Under the federal Protecting Tenants at Foreclosure Act (PTFA), most renters in Colorado are entitled to at least 90 days written notice before being required to move out after a foreclosure sale. If you have a lease, and the new owner is not moving into the home as their primary residence, you can often stay until your lease ends.

• You must receive a written notice to vacate from the new owner or lender.
• If you are on a month-to-month (or shorter) rental, you still get at least 90 days.
• If you have a lease, you usually have the right to stay until it ends, unless the new owner moves in.
• If the new owner wants to live in the home, they can give you 90 days’ advance notice to leave.

Who Oversees Rental Disputes in Colorado?

The main authority handling residential tenancy matters is the Colorado Department of Local Affairs (DOLA) - Division of Housing. While Colorado does not have a single tribunal for landlord-tenant disputes, most eviction and foreclosure-related cases are handled in the county court where the property is located.

Key Tenant Protections and State Laws

Your protections during foreclosure are outlined in the Colorado Revised Statutes Title 38, Article 12 (Landlord and Tenant) and federal law. Important items include:

• Right to Notice: You must be provided written notification before eviction steps begin.
• Right to Remain: You can stay for the duration of your lease unless the new owner will move in, in which case you must get 90 days’ notice.
• Right to Withhold Rent: Your obligation to pay rent remains until you are legally required to move.

For a quick summary, read the Colorado Renter's Rights page provided by the state’s Division of Housing.

What Forms Might Renters See or Use?

• Summons and Complaint in Forcible Entry and Detainer (FED): If the new property owner wants to evict you after the foreclosure, they must file this eviction lawsuit in county court.
  When you might see it: If you don’t leave after the 90-day notice (or lease end), a summons may be served on you. You have the right to respond in court.
  Official Summons Form (JDF 99)
• Answer Under Simplified Procedure: If served with an eviction summons, you can respond using this form.
  Example: If you believe you were not given the proper notice or have another defense, submit this form to the court.
  Answer Form (JDF 97)
• Motion to Stay Execution of Eviction: If you need more time to move, you may request the court to delay the lockout.
  Example: Use this if you need a short extension to move out.
  Motion to Stay Form (JDF 98)

Action Steps If Your Rental Is in Foreclosure

Staying proactive can help you avoid surprises and protect your housing. Here are practical next steps if you are renting a home in foreclosure:

• Confirm your lease details and keep copies of all rental agreements.
• Check your mail and door for any foreclosure or eviction notices.
• Continue paying rent on time. Until you receive notice from the new owner or the court, rent payments should go to your original landlord.
• If you receive a notice to vacate or eviction lawsuit, act quickly and don’t ignore it.
• Contact a local tenant resource or legal aid for help understanding your legal rights.

FAQ for Colorado Renters During Foreclosure

1. Do I have to move out immediately if my rental property is foreclosed in Colorado?
   No. You generally have the right to receive at least 90 days' written notice, and in many cases, you can stay until your lease ends unless the new owner will live there.
2. Who do I pay rent to after a foreclosure sale?
   Until you receive official notice, pay rent as usual. Once the new owner contacts you, pay rent to them. Always ask for written instructions.
3. How will I know if my landlord's property is in foreclosure?
   You may receive notice by mail or a posted sign. If you suspect foreclosure, check Colorado public records or contact your county's public trustee office.
4. Can I be evicted during foreclosure for reasons unrelated to foreclosure?
   Yes. Usual eviction rules still apply for violations such as nonpayment of rent or lease breaches, according to Colorado law.
5. Where can I get help if I'm facing eviction after a foreclosure?
   Reach out to Colorado Legal Services, the Division of Housing, or local tenant rights organizations for free guidance and support.

Need Help? Resources for Renters

• Colorado Division of Housing: Renter Rights and Resources
• Colorado Housing Search: Find affordable rental options
• Colorado Legal Services: Free tenant legal aid, including foreclosure help
• Eviction and foreclosure cases are heard by your local Colorado County Court
• Read the full Colorado Revised Statutes Title 38 for complete landlord-tenant rules

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1. [1] Colorado Division of Housing – Landlord/Tenant Information
2. [2] Colorado Revised Statutes Title 38, Article 12
3. [3] Protecting Tenants at Foreclosure Act (PTFA)
4. [4] Official Eviction Summons (JDF 99)
5. [5] Eviction Answer Form (JDF 97)
6. [6] Motion to Stay (JDF 98)

Key Takeaways:

• Colorado renters have the right to written notice and, in most cases, at least 90 days to move after foreclosure.
• Your lease still matters: you may have the right to stay until it ends unless the new owner moves in.
• Legal help and official forms are available—respond to notices, act quickly, and seek assistance as needed.

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