colorado Deed of Trust and Promissory Notes ?

[Glenn N.]

Is anyone familiar with The Deed of Trust and the Promissory Note in Colorado? I am trying to find out if these are valid after they reach the due date of the loan ( hard money loan) Are they due on this day or is their time after the due date that they ar valid until its paid off? Thank you

[Jeff S.]

It seems like you’re asking a few different questions, @Glenn N.  The final payment is normally due no later than the maturity date on the note. At this point, the lender could either extend the loan or consider you in default and initiate foreclosure.

Assuming they were valid at the start, then of course the note and deed of trust are valid after the maturity date has been exceeded. I believe that in Colorado the statute of limitations on a lien is 15 years after the maturity date specified on the note.

Additionally, the creditor has 6 years from a default to enforce the note.

Here’s some light bedtime reading:

https://law.justia.com/codes/colorado/2017/title-38/real-property/article-39/part-2/section-38-39-201/

https://law.justia.com/codes/colorado/2016/title-4/article-3/part-1/section-4-3-118

https://frascona.com/statute-of-limitations-on-colorado-home-loan-default/#:~:text=Colorado%20courts%20have%20long%20held,promissory%20note%20is%20non%2Dpayment.

Obviously, if necessary, you’ll want to confirm all of this with a knowledgeable lending attorney and discuss your specific circumstances.

Before you do any of this though, and reading between the lines, if you’re in trouble, then the first thing you want to do is discuss this with your lender. No lender wants to foreclose. There’s almost no problem that can’t be solved easily so long as you keep the communications honest and open.