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Irene Josey

Treasurer and Public Trustee

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Foreclosure Information

Foreclosure Definitions and Process

The foreclosure process is stated in Title 38, Article 38 of the Colorado Revised Statutes. Those statutes are readily available in many town libraries in addition to 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 related to the foreclosure process. Our office does not provide legal guidance.

DEED OF TRUST - In Colorado, a mortgage is normally called a Deed of Trust and that file is signed and taped at the time the residential or commercial property is purchased and financed. The Deed of Trust provides the Public Trustee the right to sell the residential or commercial property through foreclosure proceedings if the debtor 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 might be the original rates of interest on the loan and might not show the default rate of interest. Default rates of interest normally enter into impact when payments on the loan are in financial obligations or past due.

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

NED RECORDED - The Notice of Election & Demand for Foreclosure (NED) is the very first file the general public Trustee's office gets from the lending institution or its attorney. This is taped with the Clerk & Recorder's workplace and the foreclosure is formally begun at this time.

SCHEDULED SALE DATE - A sale date is developed someplace in between 110 and 125 days after the NED is taped to allow time for legal notification mailings and for paper publications to be finished. The original sale date might be continued upon demand of the lending institution 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 mail notices and info to persons/entities defined on the mailing notes offered to the general public Trustee by the lending institution or its attorney. This notification sets out the time and date of the foreclosure sale. There are at least two mailings sent out to the mailing lists offered.

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

CONTINUANCE - The arranged sale date may be continued (held off) at the demand of the lending institution or its attorney, or it may be continued by the Public Trustee, for legally-defined reasons.

CURE - A cure might be made prior to the foreclosure sale just by specific 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 person) believes they can bring the past-due payments present (plus all charges and costs of the lending institution, lending institution's attorney, and Public Trustee), they need to submit with the general public Trustee's workplace a Notice of Intent to Cure a minimum of 15 days prior to the set up sale date. The general public Trustee's office then demands cure figures from the lending institution. Cure figures from the lending institution are because of the Public Trustee's workplace within 10 business days of the demand or by the eighth (8th) calendar day before the sale. Once remedy figures are received, the Public Trustee provides those to the celebration who filed the Intent to Cure. The cure quantity provided is reliable through the deadline listed on the remedy declaration. Funds must be submitted to the general public Trustee's Office by noon (12:00 pm Mountain Time) the day before the scheduled sale date. If the arranged sale date is continued to a later date, the deadline to file an Intent to Cure by those parties entitled to cure might likewise be extended.

WITHDRAWAL - A foreclosure might be withdrawn (stopped) for numerous factors at the demand of the lending institution or its lawyer, 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 generally processed when a remedy is made so that the foreclosure does not go forward.

RULE 120 COURT ACTION and ORDER AUTHORIZING SALE (OAS) - When a loan is referred to a lawyer for a foreclosure action, the attorney submits 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 participate in that hearing. The function of the hearing is to offer the lender's lawyer an opportunity to show to the judge that a "reasonable likelihood" exists that the loan is in default. If the borrower/owner does NOT appear at the court hearing, the court will think about from the evidence provided whether or not there is an affordable probability that a default exists and then, if so, will go into an Order Authorizing Sale to allow the foreclosure action to proceed. Before the general public Trustee's workplace may sell a residential or commercial property on the foreclosure sale date, it needs to have gotten from the lender's lawyer a signed copy of the Order Authorizing Sale. Any foreclosure sale made without that Order is invalid.

BID AMOUNT OR AMENDED BID - An initial written quote is due from the foreclosing lender/holder by midday (12:00 pm Mountain Time) two organization days prior to the arranged foreclosure sale date. A quote generally includes the impressive principal amount, interest due, and statutorily-allowable charges and expenses from the lawyer and Public Trustee. Bids sent on time might be modified the day before the sale. If a preliminary composed quote from the lending institution is not received timely 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 quotes that they believe 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 is worth less than the quantity owed on it, the "shortage amount" reflects the distinction. If the residential or commercial property is cost less than the quantity owed on the loan at the time of sale (plus all costs and fees), the lender may try to gather the deficiency amount personally against the debtor through a separate court action due to the fact that the shortage quantity is NOT extinguished by the foreclosure.

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

THIRD PARTY BIDDER - If someone aside from the foreclosing lender (generally referred to as a "3rd party bidder") bids more than the initial composed bid sent by the foreclosing lender, that is an overbid. The effective 3rd party bidder should send qualified funds by 2:00 pm (Mountain Time) the day of the sale via wire, money or licensed check.

OVERBID AMOUNT OR EXCESS PROCEEDS - If the residential or commercial property goes to foreclosure auction sale and is acquired for MORE than the TOTAL OWED to the lender and to all other lien holders, the customer at the time the foreclosure was started need to get in touch with the Public Trustee's office 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 effective 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 completely assignable.

JUNIOR LIENORS - There may 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 need 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 eight (8) service days of the sale. Lienors interested in exercising their legal rights on a foreclosure residential or commercial property are highly encouraged to seek advice from with an attorney.

LAST DATE TO REDEEM/ REDEMPTION - This is the deadline for a redemption to be made by a junior lienor who has submitted an Intent to Redeem type and been provided redemption figures. A redemption needs that all funds owing to the foreclosing loan provider or holder of the Certificate of Purchase (COP), consisting of attorney's charges and costs and Public Trustee's charges and expenses, be paid in full. If a residential or commercial property is redeemed before the deadline expires, a Certificate of Redemption (COR) will be provided. Once the COR has actually been released by the Public Trustee, it is assignable to somebody else at the option of the holder. Ultimately, the last COR issued will acquire ownership of the residential or commercial property through a Public Trustee's Confirmation Deed.

DEED or CONFIRMATION DEED - Once all redemption durations have actually expired and no redemption has actually been made (or a redemption has been made and a Certificate of Redemption has actually been released and taped), the general 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 type must be completed by the Certificate of Purchase or Certificate of Redemption holder.

RESCISSION - The lending institution or its lawyer might rescind (space) the foreclosure sale after it has occurred. In order to rescind the sale, the foreclosing loan provider needs to be the successful bidder at the foreclosure sale and the holder of the Certificate of Purchase, and a notice should be offered to the general public Trustee no later on than 8 business days after the date of the foreclosure sale.

BANKRUPTCY/ RESTART - When a customer files a Personal bankruptcy Petition prior to or throughout 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 more notice from the court. The foreclosure sale extends week to week till the Bankruptcy Court takes action. If the Bankruptcy Court consequently provides an order approving relief from the stay order, then the foreclosure might be restarted.

FAQs

1. How can I stop a foreclosure?
Before a residential or commercial property goes to sale, the foreclosure can be cured by bringing the payments and fees existing. An Intent to Cure need to be submitted with the Public Trustee's Office (there is no cost to file) at least 15 days before the Sale is scheduled. The amount essential to cure a foreclosure is determined by the lending institution. The cash must be gotten by the deadline noted on the treatment declaration that is supplied to you. The last day fund may be submitted to the Public Trustee's Office is by noon the day before the sale.

2. Does the Larimer County Public Trustee perform workshops concerning the foreclosure process?
We do not carry out seminars worrying the foreclosure procedure. Instead, we have assembled this website as a tool to instruct residents thinking about finding out about the foreclosure procedure. We enjoy to address your concerns you have or provide additional resources if available. For house owners in foreclosure, please examine the Foreclosure Counseling Resources. We do not offer legal guidance.

3. Where can I obtain info about other tape-recorded liens existing against this residential or commercial property?
Information worrying other liens tape-recorded versus 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 calling their office at (970) 498-7860.

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

5. When and where are the general public Trustee Sales carried out?
Sales are held without delay at 10:00 am (Mountain Time) each Wednesday (except County vacations) online at larimer.realforeclose.com. You need to register with RealForeclose prior to the sale and submit a deposit by 4:30 pm (Mountain Time) the day before the sale if you intend on bidding.

6. What type of funds are required 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 forms for both the bidder deposits and the last payment by the effective bidder.