Question 1

Is my Fort Collins rental homestead property under Colorado law?

Accepted Answer

Not if neither you nor your family lives there. Colorado's homestead exemption applies only while the property is occupied as a home by the owner or the owner's family. A rental leased to students or anyone else is outside it. Even on a true homestead, a deed of trust that waives homestead rights lets a foreclosure buyer take free of them. 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.

Question 2

What happens to a second lien on a Fort Collins rental if the first is foreclosed?

Accepted Answer

The second lienholder has 8 business days after the sale to file a notice of intent to redeem, or it loses both redemption and any share of the surplus. Colorado forecloses deeds of trust through the county Public Trustee, with a Rule 120 court order, and a non-agricultural sale is set 110 to 125 calendar days after the notice of election and demand records. The borrower has no redemption right after the sale; only junior lienors do. Overbid goes, in recording order, only to junior lienors who filed the notice, and once redemption ends the title vests free of liens junior to the one foreclosed. A recorded deed of trust with no address entitles its holder to no notice at all, so the second's deed of trust must carry the lender's address. Larimer County's Public Trustee runs its foreclosure sales online. If you refinance the first later, the second-lien holder generally has to sign a resubordination agreement. Read lien position explained before you stack debt.

Question 3

What does recording a second deed of trust cost in Larimer County?

Accepted Answer

$43 per document, whatever the page count. The Larimer County Clerk and Recorder lists a deed of trust at $43 per document, under fees effective July 1, 2025. Colorado's documentary fee is charged on deeds that convey title, and the statute exempts a document given to secure payment of a debt, so a deed of trust pays none. When the loan is paid off, a release of deed of trust runs $73, which is a $30 Public Trustee fee plus the $43 recording fee. Larimer takes eRecording through three vendors (CSC, eRecord Partners Network and Simplifile), and the office is at 200 W. Oak Street in Fort Collins. A Greeley or Windsor rental is generally in Weld County, a different recorder, so check there.

Question 4

Does a Fort Collins short-term rental license come with the property?

Accepted Answer

No. It expires with the owner, so the income does not automatically convey. A non-primary short-term rental, where the owner does not live there and rents the whole unit for under 30 days, is allowed only in zones that allow lodging establishments, so check the city's short-term rental zoning map for the address. The license costs $150 initially and $100 to renew, on a July 1 to June 30 cycle. It does not transfer on sale; a new owner applies in their own name within 30 days of closing. In 2025 the city removed non-primary short-term rentals from the Old Town North (CCN) zone, and existing licenses there stay renewable but expire when ownership changes. For a lender and a borrower alike, that means nightly income is tied to the license holder, not the house.

Question 5

Is a second mortgage on a rental treated like a consumer loan in Colorado?

Accepted Answer

The test is what the money is for. Colorado's mortgage loan originator law applies to a residential mortgage loan, defined as one primarily for personal, family or household use secured by a dwelling of four or fewer units, first lien or junior. The Uniform Consumer Credit Code excludes a loan for a business, investment or commercial purpose from its definition of a consumer loan, unless the loan is made subject to the code. We found no Division of Real Estate or UCCC Administrator guidance on business-purpose seconds, so this is not a licensing opinion. Talk to your attorney about your own structure.

Question 6

Does the old U+2 occupancy rule still limit Fort Collins rentals?

Accepted Answer

No. The familial-relationship cap is gone, but health and safety limits are not. HB24-1007 added C.R.S. 29-20-111, effective July 1, 2024, which bars a local government from limiting how many people live together based on familial relationship. Fort Collins repealed its own occupancy limits in July 2024. Building, fire and wastewater codes can still cap occupancy, so bedroom egress and room size still matter. Separately, since January 1, 2025, most long-term rentals inside Fort Collins must be registered with the city. Underwrite a student rental against today's rules, not the old cap.

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