Colorado Short Sale Specialists
Aequitas Real Estate

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Foreclosure Timeline

Colorado Foreclosure Timeline

There are three main types of foreclosures:  

The Public Trustee Foreclosure
Foreclosures conducted by the office of the Public Trustee. 

      The Tax Sale
The Tax Lien Sale is the sale of delinquent real estate taxes by the County Treasurer, thereby resulting in a tax lien against the property. The procedure is set by statute. Please visit the Douglas County Treasurer's Web site for more information regarding Tax Lien Sales.


            The Judicial Foreclosure
A judicial foreclosure is conducted through the court system on a mortgage, deed of trust, or judgment. The procedure for conducting the foreclosure is under Rule 105 of the Colorado Rules of Civil Procedure. A mortgage is an agreement between two parties, the mortgagor (owner) and the mortgagee (lender).


Foreclosure Process

How to Initiate a Foreclosure


·         Colorado Revised Statue 38-38-101 requires certain documents be filed with the Public Trustee in order to initiate a foreclosure. These documents are:
- Notice of Election and Demand.
- Original Evidence of Debt, or a copy of the Note and Certificate of the Owner and Holder of the Evidence of Debt, or a Corporate Surety Bond in the amount of one and one-half times the face amount of the original Evidence of Debt.
- Original Deed of Trust or certified copy, or copy with certification letter
- List of names and addresses of parties to receive notice.

One other required document, the Combine Notice is produced by the Public Trustee's Office.

Foreclosure Process Prior to Sale


After the Public Trustee receives the required documents, the Public Trustee files a Notice of Election and Demand with the Clerk and Recorder. The owner now has at least 110 calendar days to cure or reconcile with the bank. For agricultural property the time is at least 215 days. Information concerning liens recorded against a property can be obtained by contacting the County Clerk and Recorder's Office in the county where the property is located.  Many counties have web sites where this information can be accessed as well.


Foreclosure Bid and Sale Process


The foreclosing lender must produce a written bid no later than noon on the Monday before the Public Trustee sale. If a written bid is not received from the lender for a property set for sale, then the sale is postponed for at least one week. Parties interested in bidding must bid $100.00 over the lender's bid, which is read aloud at the time of sale. The bidding is competitive and done orally with the highest bidder winning. A certificate of purchase is issued to the bidder and held by the Public Trustee. Successful bidders must present cash or certified funds payable to "Douglas County Public Trustee" at time of foreclosure sale for the exact amount of their bid. The Certificate of Purchase is recorded with the Douglas County Clerk and Recorder. The interest under the Certificate of Purchase is fully assignable.


After the Foreclosure Sale


The holder of a junior lien must file Intent to Redeem with the Office of the Public Trustee within 8 business days after the sale and pay the $50 fee. The Public Trustee will then obtain a redemption amount which will be for the amount from the bid winner including sale amount, per diem interest at the default rate of the note and any other expenses allowed by law. A lienor must present the redemption amount in cash or certified funds to the Public Trustee by the close of business on the final day of lienor's redemption period. The Public Trustee cannot accept late redemption proceeds.


Affidavit to be Filed by Lienor


At the time of filing an Intent to Redeem (C.R.S. 38-38-303(4)), the lienor or the lienor's attorney files a true and correct copy of the recorded instruments evidencing the lien or any assignment with evidence of recording affixed and an affidavit stating the amount to redeem such lienor's lien.

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