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What is a Foreclosure?
A foreclosure occurs when a borrower has defaulted on a loan that is secured with a Deed of Trust on real property. The lender
demands that their attorney foreclose on the defaulted deed of trust. The attorney orders a foreclosure certificate from a
title company and prepares the paperwork to send to the proper Colorado County Public Trustee.
The Public Trustee receives the Notice of Election and Demand for foreclosure and the accompanying documents. The Public Trustee
has ten working days to record the Notice of Election and Demand for foreclosure. The foreclosure timeline starts when we
record the Notice of Election and Demand in the County Clerk’s office. The homeowner must file a written Notice of Intent
to Cure in the Public Trustee’s office no less that 15 days prior to the Sale Date.
If the Notice of Intent to Cure is filed timely, the homeowner has until noon of the day before the sale to bring the payments
current by paying the amount due to the Public Trustee in Certified Funds.
If the foreclosure goes to sale, the homeowner normally has 75 days to redeem the foreclosure (to pay off the Certificate
of Purchase amount plus interest and fees).In order to redeem the homeowner must file a written Notice of Intent to Redeem
no less that 15 days prior to the last day of the owner's redemption period.
During the homeowner’s redemption period, any junior lienors with a recorded interest in the property can file their Notice
of Intent to Redeem no less that 15 days prior to the last day of the owner's redemption period. If the homeowner does not
redeem, then the junior lienors who have filed Intents to Redeem have specific time periods to redeem following the end of
the owner’s redemption period.
If a homeowner redeems, then the homeowner retains ownership of the property and no Public Trustee’s Deed is issued. If no
one redeems, the Certificate of Purchase holder can be issued a confirming Public Trustee’s Deed following the expiration
of all redemption periods. The last redeeming junior lienor can be issued a confirming Public Trustee’s Deed following the
expiration of all redemption periods.
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