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Irene Josey

Treasurer and Public Trustee

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Foreclosure Information

Foreclosure Definitions and Process

The foreclosure process is set forth in Title 38, Article 38 of the Colorado Revised Statutes. Those statutes are readily available in the majority of town libraries as well as online at https://leg.colorado.gov/agencies/office-legislative-legal-services/colorado-revised-statutes.

Below you will find some meanings of foreclosure terms you may see while using our Foreclosure Search or on other materials connected to the foreclosure process. Our workplace does not offer legal suggestions.

DEED OF TRUST - In Colorado, a mortgage is typically called a Deed of Trust which file is signed and recorded at the time the residential or commercial property is acquired and financed. The Deed of Trust offers the general public Trustee the right to sell the residential or commercial property through foreclosure proceedings if the borrower defaults on the regards to the Deed of Trust or Promissory Note (non-payment or other default).

LOAN TYPE - Some different kinds of loans are: Conventional, VA, FHA, and Unknown.

RATE OF INTEREST - The percentage rate shown may be the original interest rate on the loan and may not show the default interest rate. Default interest rates usually enter into impact when payments on the loan are in arrears or overdue.

CURRENT BENEFICIARY - It is a typical practice for mortgage companies to "sell" loans to other lenders or swimming pools of loan providers. The current lender (or beneficiary) of a loan will often not be the mortgage business that made the loan when the residential or commercial property was initially purchased.

NED RECORDED - The Notice of Election & Demand for Foreclosure (NED) is the first file the Public Trustee's workplace receives from the loan provider or its lawyer. This is tape-recorded with the Clerk & Recorder's workplace and the foreclosure is formally begun at this time.

SCHEDULED SALE DATE - A sale date is established somewhere in between 110 and 125 days after the NED is recorded to allow time for legal notification mailings and for paper publications to be finished. The original sale date may be continued upon request of the lending institution or its lawyer, or it might be continued by the Public Trustee only under legally-defined scenarios.

MAILINGS - By law, the Public Trustee must send by mail notifications and information to persons/entities specified on the mailing lists provided to the general public Trustee by the loan provider or its lawyer. This notification sets out the time and date of the foreclosure sale. There are at least two mailings sent to the mailing notes supplied.

PUBLICATION - By law, the general public Trustee should release the sent by mail notice in a newspaper of general flow within Larimer County. We currently release in the Loveland Reporter-Herald. The notification must be published a minimum of 5 consecutive weeks.

CONTINUANCE - The set up sale date may be continued (delayed) at the request of the loan provider or its lawyer, or it might be continued by the Public Trustee, for legally-defined reasons.

CURE - A remedy might be made prior to the foreclosure sale just by certain people/entities who have a legal right to cure the default on the mortgage or Deed of Trust. If a residential or commercial property owner (or other legally-entitled individual) believes they can bring the past-due payments present (plus all fees and costs of the lender, lender's attorney, and Public Trustee), they should submit with the Public Trustee's workplace a Notification of Intent to Cure a minimum of 15 days prior to the scheduled sale date. The Public Trustee's workplace then requests cure figures from the loan provider. Cure figures from the lender are because of the general public Trustee's office within 10 organization days of the request or by the eighth (8th) calendar day before the sale. Once remedy figures are received, the general public Trustee provides those to the celebration who submitted the Intent to Cure. The treatment amount offered works through the due date listed on the treatment declaration. Funds should be sent to the Public Trustee's Office by midday (12:00 pm Mountain Time) the day before the set up sale date. If the scheduled sale date is continued to a later date, the due date to submit an Intent to Cure by those parties entitled to cure might also be extended.

WITHDRAWAL - A foreclosure may be withdrawn (stopped) for numerous factors at the demand of the loan provider or its attorney, or by the Public Trustee if the sale has actually been continued for too long an amount of time according to statute. A withdrawal is usually processed when a cure is made so that the foreclosure does not go forward.

RULE 120 COURT ACTION and ORDER AUTHORIZING SALE (OAS) - When a loan is described an attorney for a foreclosure action, the lawyer files a court action under Rule 120 of the Colorado Rules of Civil Procedure. The borrowers/owners are notified of the date and time for the court hearing and may go to that hearing. The purpose of the hearing is to provide the lending institution's lawyer an opportunity to show to the judge that a "reasonable possibility" exists that the loan remains in default. If the borrower/owner does NOT appear at the court hearing, the court will consider from the proof presented whether or not there is a sensible likelihood that a default exists and after that, if so, will enter an Order Authorizing Sale to allow the foreclosure action to proceed. Before the Public Trustee's workplace may sell a residential or commercial property on the foreclosure sale date, it should have received from the lender's attorney a signed copy of the Order Authorizing Sale. Any foreclosure sale made without that Order is void.

BID AMOUNT OR AMENDED BID - A preliminary written bid is due from the foreclosing lender/holder by twelve noon (12:00 pm Mountain Time) two service days prior to the set up foreclosure sale date. A bid generally consists of the outstanding principal amount, interest due, and statutorily-allowable charges and expenses from the attorney and Public Trustee. Bids sent on time might be amended the day before the sale. If a preliminary composed quote from the loan provider is not gotten prompt for a foreclosure set to go to sale, the foreclosure sale is continued for at least one week.

DEFICIENCY AMOUNT - Foreclosing lenders need to submit bids that they think are a reflection of the residential or commercial property's value at the time of the foreclosure sale. If the lender feels the residential or commercial property is worth less than the amount owed on it, the "deficiency amount" reflects the distinction. If the residential or commercial property is offered for less than the quantity owed on the loan at the time of sale (plus all expenses and costs), the loan provider may attempt to gather the deficiency quantity personally against the borrower through a different court action since the shortage quantity is NOT snuffed out by the foreclosure.

ACTUAL SALE DATE - This is when the residential or commercial property is in fact cost the foreclosure auction sale. Once the sale is actually held, several due dates start to run.

THIRD PARTY BIDDER - If somebody other than the foreclosing lending institution (typically referred to as a "3rd party bidder") quotes more than the preliminary written quote submitted by the foreclosing loan provider, that is an overbid. The effective 3rd party bidder should submit licensed funds by 2:00 pm (Mountain Time) the day of the sale through wire, money or licensed check.

OVERBID AMOUNT OR EXCESS PROCEEDS - If the residential or commercial property goes to foreclosure auction sale and is bought for MORE than the TOTAL OWED to the loan provider and to all other lien holders, the debtor at the time the foreclosure was started must contact the Public Trustee's workplace AFTER THE SALE happens due to the fact that they MAY have funds due to them.

CERTIFICATE OF PURCHASE (COP) - The Public Trustee concerns this document to the successful bidder at the foreclosure sale to show that the successful bidder has an interest in the residential or commercial property. It is tape-recorded with the Clerk & Recorder's office and made a public record. The interest under the Certificate of Purchase is fully assignable.

JUNIOR LIENORS - There might be more than one deed of trust or other lien on a residential or commercial property. Anyone who holds a lien on a residential or commercial property is called a lienor and might have a right to redemption of the residential or commercial property according to law. Lienors require to have a recorded interest in the residential or commercial property being foreclosed prior to the NED recording date. In order to redeem the residential or commercial property in foreclosure, a lienor should file a Notice of Intent to Redeem within eight (8) company days of the sale. Lienors thinking about exercising their legal rights on a foreclosure residential or commercial property are highly encouraged to talk to a lawyer.

LAST DATE TO REDEEM/ REDEMPTION - This is the deadline for a redemption to be made by a junior lienor who has actually filed an Intent to Redeem form and been given redemption figures. A redemption requires that all funds owing to the foreclosing lending institution or holder of the Certificate of Purchase (COP), including attorney's fees and costs and Public Trustee's charges and expenses, be paid completely. If a residential or commercial property is redeemed before the deadline expires, a Certificate of Redemption (COR) will be issued. Once the COR has actually been issued by the Public Trustee, it is assignable to someone else at the option of the holder. Ultimately, the last COR provided will obtain ownership of the residential or commercial property through a Public Trustee's Confirmation Deed.

DEED or CONFIRMATION DEED - Once all redemption periods have ended and no redemption has been made (or a redemption has been made and a Certificate of Redemption has actually been released and tape-recorded), the Public Trustee may issue a Public Trustee's Confirmation Deed to the holder of the Certificate of Purchase or the holder of the last-issued Certificate of Redemption. The Deed is then taped with the Clerk & Recorder's workplace and transfers title to the residential or commercial property from the previous owners (borrowers) to the new owner. A Verification Deed Request kind need to be completed by the Certificate of Purchase or Certificate of Redemption holder.

RESCISSION - The lending institution or its attorney might rescind (space) the foreclosure sale after it has happened. In order to rescind the sale, the foreclosing lender must be the effective bidder at the foreclosure sale and the holder of the Certificate of Purchase, and a notification needs to be offered to the general public Trustee no behind 8 company days after the date of the foreclosure sale.

BANKRUPTCY/ RESTART - When a borrower submits an Insolvency Petition prior to or during publication of the notification of foreclosure, the U.S. Bankruptcy Court will generally provide a stay order requiring that the foreclosure action not be continued up until additional notice from the court. The foreclosure sale extends week to week up until the Bankruptcy Court takes action. If the Bankruptcy Court consequently provides an order giving remedy for the stay order, then the foreclosure may be rebooted.

FAQs

1. How can I stop a foreclosure?
Before a residential or commercial property goes to sale, the foreclosure can be treated by bringing the payments and fees present. An Intent to Cure should be submitted with the general public Trustee's Office (there is no charge to file) a minimum of 15 days before the Sale is arranged. The amount essential to cure a foreclosure is determined by the lending institution. The money needs to be gotten by the due date noted on the cure declaration that is provided to you. The last day fund might be sent to the Public Trustee's Office is by midday the day before the sale.

2. Does the Larimer County Public Trustee conduct workshops worrying the foreclosure process?
We do not conduct seminars worrying the foreclosure procedure. Instead, we have actually assembled this web website as a tool to advise citizens interested in finding out about the foreclosure procedure. We more than happy to answer your concerns you have or provide additional resources if available. For property owners in foreclosure, please examine the Foreclosure Counseling Resources. We do not use legal suggestions.

3. Where can I acquire details about other recorded liens existing versus this residential or commercial property?
Information worrying other liens taped versus the residential or commercial property can be obtained by browsing public records on the Larimer County Clerk and Recorder's website at https://www.larimer.gov/clerk/recording/easy-access or by contacting their office at (970) 498-7860.

4. When is the sales list readily available?
A preliminary sales list is published on Monday afternoon after 2:00 pm and updated once again Tuesday afternoon prior to the Wednesday early morning sale. Properties on the sales list are also readily available on the Auction Calendar at larimer.realforeclose.com.

5. When and where are the general public Trustee Sales carried out?
Sales are held immediately at 10:00 am (Mountain Time) each Wednesday (other than County vacations) online at larimer.realforeclose.com. You should register with RealForeclose prior to the sale and send a deposit by 4:30 pm (Mountain Time) the day before the sale if you plan on bidding.

6. What kind of funds are needed to bid at a Public Trustee sale?
Acceptable kinds of payment are ACH to Realforeclose or Wire to the general public Trustee. These are the only appropriate types for both the bidder deposits and the last payment by the successful bidder.

Treasurer & Public Trustee - Contact Us

Physical Address: 200 W. Oak Street, Suite 2100, Fort Collins, CO 80521
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