COLORADO REAL ESTATE FORECLOSURE
PROCEDURES PRACTICE Questions with
Verified Answers & Rationales 2026
Q&A | Instant Download Pdf
1. Who typically acts as the neutral party in a Colorado deed of trust
foreclosure?
A. Buyer
B. Lender
C. Public trustee
D. Real estate broker
Answer: C
Rationale: The public trustee administers the foreclosure process
in Colorado, ensuring procedural compliance between borrower
and lender.
2. What initiates a foreclosure in Colorado under a deed of trust?
A. Lis pendens filing
B. Notice of Election and Demand (NED)
C. Warranty deed recording
D. Eviction notice
Answer: B
Rationale: The Notice of Election and Demand is filed by the
lender to begin the foreclosure process with the public trustee.
,3. In Colorado, foreclosure under a deed of trust is generally:
A. Judicial only
B. Non-judicial
C. Criminal
D. Administrative only
Answer: B
Rationale: Colorado primarily uses non-judicial foreclosure
through the public trustee system.
4. What document must be recorded to start foreclosure
proceedings?
A. Deed of trust release
B. Notice of Election and Demand
C. Lease agreement
D. Title insurance policy
Answer: B
Rationale: The NED is recorded with the county and filed with
the public trustee to begin foreclosure.
5. What is the primary purpose of a Rule 120 hearing in Colorado?
A. Set property taxes
B. Determine lender eligibility
C. Allow court to authorize foreclosure sale
D. Approve buyer financing
Answer: C
Rationale: A Rule 120 hearing allows the court to determine
whether a lender can proceed with foreclosure sale
authorization.
, 6. A Rule 120 proceeding is:
A. Criminal trial
B. Civil court hearing
C. Private mediation
D. Title insurance claim
Answer: B
Rationale: It is a limited civil court proceeding focused solely on
foreclosure authorization.
7. Which party files the motion for a Rule 120 hearing?
A. Borrower
B. Public trustee
C. Lender
D. County assessor
Answer: C
Rationale: The lender requests court authorization to proceed
with foreclosure sale via Rule 120.
8. What does “cure period” refer to in foreclosure?
A. Time to refinance
B. Time to fix default and reinstate loan
C. Time to sell property
D. Time to appeal taxes
Answer: B
Rationale: The cure period allows the borrower to bring the loan
current before the foreclosure sale occurs.
9. When must the Notice of Sale be published in Colorado
foreclosure?
A. After redemption
PROCEDURES PRACTICE Questions with
Verified Answers & Rationales 2026
Q&A | Instant Download Pdf
1. Who typically acts as the neutral party in a Colorado deed of trust
foreclosure?
A. Buyer
B. Lender
C. Public trustee
D. Real estate broker
Answer: C
Rationale: The public trustee administers the foreclosure process
in Colorado, ensuring procedural compliance between borrower
and lender.
2. What initiates a foreclosure in Colorado under a deed of trust?
A. Lis pendens filing
B. Notice of Election and Demand (NED)
C. Warranty deed recording
D. Eviction notice
Answer: B
Rationale: The Notice of Election and Demand is filed by the
lender to begin the foreclosure process with the public trustee.
,3. In Colorado, foreclosure under a deed of trust is generally:
A. Judicial only
B. Non-judicial
C. Criminal
D. Administrative only
Answer: B
Rationale: Colorado primarily uses non-judicial foreclosure
through the public trustee system.
4. What document must be recorded to start foreclosure
proceedings?
A. Deed of trust release
B. Notice of Election and Demand
C. Lease agreement
D. Title insurance policy
Answer: B
Rationale: The NED is recorded with the county and filed with
the public trustee to begin foreclosure.
5. What is the primary purpose of a Rule 120 hearing in Colorado?
A. Set property taxes
B. Determine lender eligibility
C. Allow court to authorize foreclosure sale
D. Approve buyer financing
Answer: C
Rationale: A Rule 120 hearing allows the court to determine
whether a lender can proceed with foreclosure sale
authorization.
, 6. A Rule 120 proceeding is:
A. Criminal trial
B. Civil court hearing
C. Private mediation
D. Title insurance claim
Answer: B
Rationale: It is a limited civil court proceeding focused solely on
foreclosure authorization.
7. Which party files the motion for a Rule 120 hearing?
A. Borrower
B. Public trustee
C. Lender
D. County assessor
Answer: C
Rationale: The lender requests court authorization to proceed
with foreclosure sale via Rule 120.
8. What does “cure period” refer to in foreclosure?
A. Time to refinance
B. Time to fix default and reinstate loan
C. Time to sell property
D. Time to appeal taxes
Answer: B
Rationale: The cure period allows the borrower to bring the loan
current before the foreclosure sale occurs.
9. When must the Notice of Sale be published in Colorado
foreclosure?
A. After redemption
