During a Colorado Public Trustee foreclosure, a limited court proceeding takes place before the foreclosure sale can proceed. What is the primary purpose of this court proceeding?
Correct Answer
D) To confirm the lender's right to foreclose and that the deed of trust covers the property
The Rule 120 hearing in Colorado is a limited court review — not a full trial — held under C.R.S. § 38-38-101. Its primary purpose is for the court to confirm that the lender has the legal right to foreclose and that the deed of trust covers the subject property. It is a narrow proceeding, not a full adjudication of all claims.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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