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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 readily available in the majority of public libraries along with online at https://leg.colorado.gov/agencies/office-legislative-legal-services/colorado-revised-statutes.

Below you will find some definitions of foreclosure terms you may see while using our Foreclosure Search or on other products connected to the foreclosure process. Our office does not supply legal suggestions.

DEED OF TRUST - In Colorado, a mortgage is normally called a Deed of Trust which file is signed and taped at the time the residential or commercial property is purchased and financed. The Deed of Trust gives the Public Trustee the right to offer the residential or commercial property through foreclosure procedures if the customer defaults on the terms of the Deed of Trust or Promissory Note (non-payment or other default).

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

RATES OF INTEREST - The percentage rate shown might be the original interest rate on the loan and may not show the default rates of interest. Default interest rates normally go into result when payments on the loan are in financial obligations or overdue.

CURRENT BENEFICIARY - It is a common practice for mortgage business to "offer" loans to other lenders or swimming pools of loan providers. The present lending institution (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 acquired.

NED RECORDED - The Notice of Election & Demand for Foreclosure (NED) is the first file the general public Trustee's office gets from the lender or its lawyer. 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 someplace in between 110 and 125 days after the NED is tape-recorded to permit time for legal notice mailings and for paper publications to be finished. The original sale date may be continued upon demand of the lender or its attorney, or it may be continued by the Public Trustee just under legally-defined scenarios.

MAILINGS - By law, the general public Trustee should mail notices and info to persons/entities defined on the mailing lists offered to the 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 2 mailings sent out to the mailing lists provided.

PUBLICATION - By law, the Public Trustee must publish the mailed notification in a newspaper of basic blood circulation within Larimer County. We presently release in the Loveland Reporter-Herald. The notification needs to be published a minimum of 5 consecutive weeks.

CONTINUANCE - The set up sale date might be continued (held off) 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 only 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 current (plus all costs and costs of the lending institution, lending institution's lawyer, and Public Trustee), they should file with the general public Trustee's office a Notice of Intent to Cure a minimum of 15 days prior to the scheduled sale date. The Public Trustee's office then demands treat figures from the lender. Cure figures from the loan provider are because of the general public Trustee's workplace within 10 service days of the demand or by the eighth (8th) calendar day before the sale. Once treatment figures are gotten, the general public Trustee offers those to the party who submitted the Intent to Cure. The remedy quantity provided is reliable through the due date listed on the treatment statement. Funds need to be submitted to the general public Trustee's Office by noon (12:00 pm Mountain Time) the day before the set up 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 treat might also be extended.

WITHDRAWAL - A foreclosure might be withdrawn (stopped) for a number of factors at the demand of the lending institution or its lawyer, or by the Public Trustee if the sale has been continued for too long a time period as per statute. A withdrawal is typically 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 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 informed of the date and time for the court hearing and might participate in that hearing. The function of the hearing is to supply the lender's lawyer an opportunity to prove 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 provided whether there is an affordable possibility that a default exists and then, if so, will get in an Order Authorizing Sale to allow the foreclosure action to proceed. Before the general public Trustee's workplace might offer 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 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) 2 service days prior to the scheduled foreclosure sale date. A quote typically consists of 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 written bid 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 should submit quotes 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 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 expenses and costs), the lender may attempt to gather the shortage quantity personally against the debtor through a separate court action because the shortage quantity is NOT extinguished 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 really held, a number of due dates begin to run.

3RD PARTY BIDDER - If somebody other than the foreclosing lender (generally described as a "3rd party bidder") quotes more than the initial written quote sent by the foreclosing lending institution, that is an overbid. The successful 3rd party bidder need to submit qualified funds by 2:00 pm (Mountain Time) the day of the sale via wire, money or certified check.

OVERBID AMOUNT OR EXCESS PROCEEDS - If the residential or commercial property goes to foreclosure auction sale and is purchased for MORE than the TOTAL OWED to the lending institution and to all other lien holders, the borrower at the time the foreclosure was started must call the general public Trustee's office AFTER THE SALE takes place since they MAY have funds due to them.

CERTIFICATE OF PURCHASE (COP) - The Public Trustee problems 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 taped with the Clerk & Recorder's workplace and made a public record. The interest under the Certificate of Purchase is fully 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 require to have a documented 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 must 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 advised to speak with 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 type and been offered redemption figures. A redemption needs 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 due date expires, a Certificate of Redemption (COR) will be issued. Once the COR has actually been released by the Public Trustee, it is assignable to another person 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 periods have actually expired and no redemption has actually been made (or a redemption has been made and a Certificate of Redemption has actually been issued and taped), the general public Trustee might release 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 recorded 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 need to be finished 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 happened. In order to rescind the sale, the foreclosing lending institution needs to be the successful bidder at the foreclosure sale and the holder of the Certificate of Purchase, and a notification must be offered to the Public Trustee no behind 8 service days after the date of the foreclosure sale.

BANKRUPTCY/ RESTART - When a customer submits a Bankruptcy Petition prior to or during publication of the notice of foreclosure, the U.S. Bankruptcy Court will typically issue a stay order needing that the foreclosure action not be continued till further notice from the court. The foreclosure sale extends week to week until the Bankruptcy Court does something about it. If the Bankruptcy Court consequently issues an order approving 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 existing. An Intent to Cure must be submitted with the Public Trustee's Office (there is no cost to file) a minimum of 15 days before the Sale is set up. The amount needed to cure a foreclosure is determined by the lending institution. The cash must be received by the due date noted on the treatment statement that is supplied to you. The last day fund might be submitted to the general public Trustee's Office is by midday the day before the sale.

2. Does the Larimer County Public Trustee perform workshops worrying the foreclosure process?
We do not carry out workshops concerning the foreclosure process. Instead, we have actually assembled this website as a tool to advise residents thinking about learning more about the foreclosure procedure. We enjoy to answer your questions you have or supply extra resources if readily available. For homeowners in foreclosure, please evaluate the Foreclosure Counseling Resources. We do not offer legal guidance.

3. Where can I obtain information about other tape-recorded liens existing against this residential or commercial property?
Information concerning other liens taped versus the residential or commercial property can be acquired 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 workplace 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 upgraded once again Tuesday afternoon prior to the Wednesday 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 Public Trustee Sales conducted?
Sales are held promptly at 10:00 am (Mountain Time) each Wednesday (except County vacations) online at larimer.realforeclose.com. You must register with RealForeclose prior to the sale and send a deposit by 4:30 pm (Mountain Time) the day before the sale if you prepare on bidding.

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