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Irene Josey

Treasurer and Public Trustee

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Foreclosure Information

Foreclosure Definitions and Process

The foreclosure procedure is stated in Title 38, Article 38 of the Colorado Revised Statutes. Those statutes are offered in many public libraries along with online at https://leg.colorado.gov/agencies/office-legislative-legal-services/colorado-revised-statutes.

Below you will discover some meanings of foreclosure terms you may see while using our Foreclosure Search or on other products associated with the foreclosure process. Our workplace does not supply legal recommendations.

DEED OF TRUST - In Colorado, a mortgage is generally called a Deed of Trust which document is signed and taped at the time the residential or commercial property is bought and financed. The Deed of Trust provides the general public Trustee the right to sell the residential or commercial property through foreclosure procedures 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.

RATES OF INTEREST - The percentage rate revealed might be the original interest rate on the loan and may not reflect the default interest rate. Default rates of interest usually enter into impact when payments on the loan are in defaults or past due.

CURRENT BENEFICIARY - It is a common practice for mortgage business to "offer" loans to other loan providers or pools of lenders. The current loan provider (or recipient) of a loan will often not be the mortgage business that made the loan when the residential or commercial property was at first purchased.

NED RECORDED - The Notice of Election & Demand for Foreclosure (NED) is the first file the general public Trustee's office receives from the lender or its attorney. This is tape-recorded with the Clerk & Recorder's office and the foreclosure is formally started at this time.

SCHEDULED SALE DATE - A sale date is developed somewhere in between 110 and 125 days after the NED is taped to permit time for legal notification mailings and for newspaper publications to be completed. The original sale date might be continued upon demand of the loan provider or its lawyer, or it might be continued by the Public Trustee just under legally-defined scenarios.

MAILINGS - By law, the general public Trustee must send by mail notices and information to persons/entities specified on the mailing notes provided to the general public Trustee by the lender or its attorney. This notice sets out the time and date of the foreclosure sale. There are at least two mailings sent out to the mailing notes provided.

PUBLICATION - By law, the general public Trustee must publish the mailed notification in a newspaper of general flow within Larimer County. We currently release in the Loveland Reporter-Herald. The notification must be published at least 5 consecutive weeks.

CONTINUANCE - The scheduled sale date might be continued (postponed) at the demand of the loan provider or its lawyer, or it may be continued by the Public Trustee, for legally-defined factors.

CURE - A cure might be made prior to the foreclosure sale only by particular people/entities who have a legal right to treat the default on the mortgage or Deed of Trust. If a residential or commercial property owner (or other legally-entitled person) believes they can bring the past-due payments present (plus all fees and expenses of the lending institution, loan provider's attorney, and Public Trustee), they need to submit with the Public Trustee's office a Notice of Intent to Cure at least 15 days prior to the set up sale date. The general public Trustee's office then requests cure figures from the lender. Cure figures from the lending institution are due to the Public Trustee's office within 10 service days of the demand or by the 8th (8th) calendar day before the sale. Once remedy figures are gotten, the general public Trustee offers those to the celebration who submitted the Intent to Cure. The remedy amount offered works through the due date noted on the cure declaration. Funds must be submitted to the Public Trustee's Office by midday (12:00 pm Mountain Time) the day before the scheduled sale date. If the scheduled sale date is continued to a later date, the deadline to submit an Intent to Cure by those celebrations entitled to treat may also be extended.

WITHDRAWAL - A foreclosure might be withdrawn (stopped) for numerous reasons at the demand of the loan provider or its lawyer, or by the Public Trustee if the sale has actually been continued for too long a time period based on 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 submits a court action under Rule 120 of the Colorado Rules of Civil Procedure. The borrowers/owners are alerted of the date and time for the court hearing and may go to that hearing. The function of the hearing is to provide the loan provider's lawyer a chance to show to the judge that a "affordable possibility" exists that the loan is in default. If the borrower/owner does NOT appear at the court hearing, the court will consider from the proof provided whether or not there is a sensible probability that a default exists and after that, if so, will go into an Order Authorizing Sale to allow the foreclosure action to proceed. Before the Public Trustee's office may offer a residential or commercial property on the foreclosure sale date, it should have gotten from the lending institution's lawyer a signed copy of the Order Authorizing Sale. Any foreclosure sale made without that Order is void.

BID AMOUNT OR AMENDED BID - A preliminary composed bid is due from the foreclosing lender/holder by noon (12:00 pm Mountain Time) two business days prior to the scheduled foreclosure sale date. A bid typically includes the outstanding principal quantity, interest due, and statutorily-allowable charges and expenses from the lawyer and Public Trustee. Bids submitted on time might be changed the day before the sale. If an initial composed quote from the lender 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 lending institutions must send bids that they think are a reflection of the residential or commercial property's worth at the time of the foreclosure sale. If the lending institution feels the residential or commercial property deserves less than the amount owed on it, the "deficiency amount" reflects the distinction. If the residential or commercial property is sold for less than the amount owed on the loan at the time of sale (plus all expenses and costs), the lending institution might try to gather the shortage amount personally versus the borrower through a different court action since the deficiency quantity is NOT extinguished by the foreclosure.

ACTUAL SALE DATE - This is when the residential or commercial property is really offered at the foreclosure auction sale. Once the sale is in fact held, several deadlines begin to run.

THIRD PARTY BIDDER - If someone other than the foreclosing loan provider (typically described as a "3rd party bidder") quotes more than the preliminary written bid sent by the foreclosing lender, that is an overbid. The successful 3rd party bidder must send certified funds by 2:00 pm (Mountain Time) the day of the sale by means of wire, cash or certified 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 lender and to all other lien holders, the borrower at the time the foreclosure was begun need to call the general public Trustee's office AFTER THE SALE happens since they MAY have funds due to them.

CERTIFICATE OF PURCHASE (COP) - The Public Trustee concerns this file to the effective bidder at the foreclosure sale to show that the successful bidder has an interest in the residential or commercial property. It is recorded with the Clerk & Recorder's workplace and made a public record. The interest under the Certificate of Purchase is totally 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 taped 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 submit a Notice of Intent to Redeem within 8 (8) business days of the sale. Lienors interested in exercising their legal rights on a foreclosure residential or commercial property are strongly recommended 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 offered redemption figures. A redemption needs that all funds owing to the foreclosing loan provider or holder of the Certificate of Purchase (COP), consisting of lawyer's fees and expenses and Public Trustee's costs and costs, be paid completely. If a residential or commercial property is redeemed before the deadline ends, a Certificate of Redemption (COR) will be provided. Once the COR has been released by the Public Trustee, it is assignable to another person at the choice of the holder. Ultimately, the last COR issued will get ownership of the residential or commercial property through a Public Trustee's Confirmation Deed.

DEED or CONFIRMATION DEED - Once all redemption durations have actually ended and no redemption has actually been made (or a redemption has been made and a Certificate of Redemption has been issued and taped), the Public Trustee might 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 (debtors) 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 lender or its attorney may rescind (space) the foreclosure sale after it has actually occurred. In order to rescind the sale, the foreclosing loan provider needs to be the effective bidder at the foreclosure sale and the holder of the Certificate of Purchase, and a notice needs to be given to the Public Trustee no behind 8 service days after the date of the foreclosure sale.

BANKRUPTCY/ RESTART - When a customer submits a Personal bankruptcy Petition prior to or throughout publication of the notification of foreclosure, the U.S. Bankruptcy Court will usually issue a stay order needing that the foreclosure action not be continued until more notification from the court. The foreclosure sale extends week to week up until the Bankruptcy Court acts. If the Bankruptcy Court consequently issues an order giving remedy for the stay order, then the foreclosure might 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 costs existing. An Intent to Cure should be filed with the Public Trustee's Office (there is no expense to file) at least 15 days before the Sale is scheduled. The amount necessary to treat a foreclosure is identified by the loan provider. The cash must be received by the due date listed on the remedy declaration that is provided to you. The last day fund may be submitted to the Public Trustee's Office is by twelve noon the day before the sale.

2. Does the Larimer County Public Trustee perform seminars concerning the foreclosure procedure?
We do not carry out seminars concerning the foreclosure procedure. Instead, we have actually assembled this web website as a tool to advise citizens interested in discovering the foreclosure process. We more than happy to address your concerns you have or offer additional resources if offered. For homeowners in foreclosure, please evaluate the Foreclosure Counseling Resources. We do not use legal advice.

3. Where can I obtain details about other recorded liens existing against this residential or commercial property?
Information worrying other liens tape-recorded against the residential or commercial property can be gotten by browsing public records on the Larimer County Clerk and Recorder's site 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 posted on Monday afternoon after 2:00 pm and updated 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 need to sign up with RealForeclose prior to the sale and submit a deposit by 4:30 pm (Mountain Time) the day before the sale if you prepare on bidding.

6. What type of funds are needed to bid at a Public Trustee sale?
Acceptable kinds of payment are ACH to Realforeclose or Wire to the Public Trustee. These are the only acceptable kinds for both the bidder deposits and the final payment by the effective bidder.