James defaulted on his home loan in Jefferson County, Colorado. The lender filed a Notice of Election and Demand (NED) with the Public Trustee. Before the foreclosure sale is completed, James wants to stop the foreclosure by paying all overdue amounts, late fees, and costs. What is this right called under Colorado law?
Correct Answer
C) The right to cure
Under C.R.S. § 38-38-104, a borrower in Colorado has the right to cure the default by paying all past-due amounts, fees, and costs before the foreclosure sale. This right to cure allows the borrower to bring the loan current and stop the foreclosure without paying off the entire loan balance. The cure period runs until a specific deadline set by statute.
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Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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