The anxiety of reading a court document with your name on it

Is this the day it all ends? What does this document mean? You received a court-ordered document that mentions a Rule 120 hearing which feels deeply worrisome. Your anxiety and stress levels agree it's scary and you aren't sure if this is related to your home or if there is some other reason you are receiving this. You create a world of possible scenarios in your head of what it could be and none are helping. I see you, I would be frightened myself so that is normal. You have been in this draining state for the last 3 to 6 months and now there is more to worry about. It feels hard and it is hard. I want to help ease this moment, this process and help you understand the Rule 120 so you can make the best decisions for you and your life. One thing up front so nothing later catches you off guard: for most homeowners, this hearing isn't where the house gets saved, and it is not you failing. It just shows you where your energy actually counts moving forward.

Is there any hope after receiving this document?

Let me walk you through what this is, in plain terms, so it stops feeling like a mystery. The Colorado Rules of Civil Procedure 120 is a court step in the foreclosure process that requires the lender to receive authorization from a judge to legally sell your home. The Rule 120 begins when the lender's attorney files a "Verified Motion for Order Authorizing a Foreclosure Sale" under the C.R.C.P. 120. At this moment, you will receive notice of Rule 120 and it will include a response deadline, the property description, the alleged default, and the lender's loss mitigation representative. Even though this sounds like and may feel like the end it is not. If you have this document in your hand you have not lost your home, I promise. Many who held this document before realized there is still time and found a way through, and you can too.

Specific hope but narrow options

I mentioned a response deadline and it can be powerful for you in very specific circumstances but the scope is narrow so I want to make sure you don't waste your time or energy if not necessary. Here's the part that should take some weight off your chest: the court's job here is specific as they can only decide on the following four things according to Rule 120(d):

• Is there a reasonable probability that a real default has occurred on your property?
• Does the Servicemembers Civil Relief Act (50 U.S.C. § 3931) / active military protection apply to you?
• Does the lender actually have legal standing to foreclose?
• Does a pending loan modification stop or pause the foreclosure sale?

It feels like giving up not to respond

If none of this fits you, and you don't respond, that's okay. Here's what happens next. The judge will review the filing and if everything looks right, they will sign the order authorizing the sale of your home. In this circumstance, no court hearing happens and unfortunately the foreclosure process proceeds to the sale date but this doesn't mean your home is sold today or you have lost it. You absolutely have other options and we at Transitus can help you see what those are.

The courage to defend what is rightfully yours

If something here does fit your situation, here's what stepping forward looks like. There is a fee associated with your response and that fee can be verified on the document in your hands. Once the response is received, the court will schedule what is called a contested hearing where you and the lender's attorney will appear in court. This court appearance sounds frightening, I get it, but if you have the right defense it's well worth it.

Even with your defense, effort, and outside support, the judge will ultimately make the final decision during the court appearance or shortly after. Waiting on that decision is its own kind of hard, I know. Whatever the judge decides, it isn't the end. Period.

How to know when you should use your energy here or not

Sure you know what the judge can decide on and what he can't but if you are still confused on when you may have a good defense I understand. The Rule 120 is confusing as is all of foreclosure which makes it harder to know when to defend yourself. I see that and I want to give some simple examples of what good defense may look like. If any of these defenses seem to fit your situation in many cases working directly with a Colorado attorney can be most helpful:

• Default Defense: You are not actually behind on your mortgage payments and have paid all of them to date.
• SCRA Defense: You are active military or are covered under the Servicemembers Civil Relief Act (50 U.S.C. § 3931)
• Real Party in Interest Defense: The lender shown on your Rule 120 notice isn't the lender who owns the loan on your home.
• Loan Notification Status: There is a dual-tracking violation under CRS 38-38-103.2

A hard day but a day of clarity

If you pursued a defense or didn't have one and you lost at Rule 120, I'm sorry. Unfortunately, whatever the judge decides, that is it and you can't appeal it further. If it feels hopeless at this point that's fair but this decision doesn't block you from many other paths. Homeowners walk this same road in Colorado every week, and many come out the other side with a plan. You and others may have different claims against your servicer or lender and can pursue a separate lawsuit if necessary. If this doesn't help and you are in a hard spot of your life you still have options and we at Transitus are here to help. If you just need to talk to someone about this hard moment of your life I am here for you.

If it feels like you lost your home, you still have hope

I want to make sure you know this. This is the common path, not a failure. Rule 120 is narrow on purpose and the vast majority of homeowners like yourself will not have a defense in this specific situation so don't beat yourself up. It's not bad news, it just provides clarity of where you should focus your effort to save your home and get the best outcome you possibly can. There are cure paths, loss mitigation options, and even selling your home options prior to the foreclosure date to avoid the other negative aspects of foreclosure. All are available exactly where you are and there is still time to get this all figured out. We at Transitus are always here to help and I hope the best for you in this hard moment of your life.

This article is general information from Transitus, not legal, financial, or tax advice. Foreclosure rules change and every situation is different. Transitus is not a foreclosure consultant (CRS 6-1-1103) and charges no upfront fees. For free help, call the Colorado Foreclosure Hotline at 1-877-601-HOPE or consult a Colorado real estate attorney.