Second Mortgage in Colorado Springs

Not on a rental you do not live in. Colorado's homestead exemption applies only while the property is occupied as a home by the owner or the owner's family, and the exemption amount follows that occupancy too. A Colorado Springs, Fountain or Security-Widefield rental leased to tenants carries no homestead exemption. Occupancy is a fact question, so expect it to be confirmed, not assumed. This is not legal advice; your attorney or title company has the final say on your property.

The second is wiped out unless its holder acts within 8 business days of the sale. Colorado forecloses deeds of trust through the county Public Trustee, with a court order under Rule 120, and a non-agricultural sale is set 110 to 125 calendar days after the notice of election and demand is recorded. The owner has no redemption right after the sale; only junior lienors can redeem, by filing a notice of intent to redeem within 8 business days, and any overbid goes only to junior lienors who filed. Once redemption ends, the title is free of liens junior to the one foreclosed. The El Paso County, Colorado Public Trustee runs its sales as online auctions on Wednesdays at 10:00 a.m. Mountain, with bidders registering at elpasoco.realforeclose.com. Its site lists a $100 intent-to-redeem filing and says that from July 1, 2026 an assignment of a junior lien must be recorded at least 15 days before the sale, so check the Public Trustee's current rules before you rely on any step. Read lien position explained before you stack debt.

The Clerk and Recorder charges a flat $43 per recorded document, and a deed of trust owes no documentary fee. Since July 1, 2025, the county's fee page says all filed and recorded documents are charged $43 regardless of the number of pages, including a $3.00 surcharge. The page does not itemize deeds of trust, so confirm with the office before closing. Colorado's documentary fee applies to deeds that convey title, and the statute exempts any document given to secure payment of a debt, which is what a deed of trust is. When the loan is paid off, the release of a deed of trust goes to the Public Trustee's office first. A Woodland Park rental sits in Teller County and records there instead. These are county and state charges, not USA Mortgage fees.

The program accepts short-term rentals, but city or county decides whether yours can operate. Inside the City of Colorado Springs, a non-owner-occupied short-term rental applied for after December 26, 2019 is not permitted in single-family zones, and elsewhere it must sit 500 feet from another one. The city permit costs $124.95 a year and cannot be transferred to another person, entity or address, so it does not convey at closing, and since June 30, 2025 a property with an ADU cannot hold one. Unincorporated El Paso County, Colorado, by contrast, has no codified short-term rental ordinance and no permit requirement for renting the principal structure, though an accessory structure used as one needs zoning approval. Rules in Manitou Springs, Woodland Park, Fountain and Monument were not confirmed, so check before you count nightly income.

Colorado draws the line at purpose. The state's mortgage loan originator law covers a residential mortgage loan, defined as one primarily for personal, family or household use secured by a dwelling of four or fewer units, with no distinction between first and junior liens. The Uniform Consumer Credit Code excludes a loan for a business, investment or commercial purpose from the meaning of a consumer loan. We found no Division of Real Estate or UCCC Administrator guidance on business-purpose seconds, so this is not a licensing opinion. That is why we ask what the funds are for. Talk to your attorney about your own structure.

Enough that a county average will mislead you. The city levied just 3.009 mills for 2025, and county plus city together are under 10 mills, so the school district carries most of the bill: 2025 school levies run from 29.765 mills in Fountain/Fort Carson District 8 to 57.682 in Widefield District 3. Newer subdivisions add a metro district on top; the city caps residential metro districts at 30 debt mills plus 10 operating mills, and City Council has approved exceedances in a few cases. Pull the parcel's actual levy from the El Paso County, Colorado Treasurer before you size a second payment. Talk to your CPA about your own numbers.