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The Colorado General Assembly established the office of the Public Trustee in each county of the state to provide for a system
of checks and balances between the borrower and the lender. All deeds of trust given to secure indebtedness on real estate
shall name as trustee such Public Trustee who acts as an intermediary between the borrower and the lender.
In the metropolitan area, the Public Trustee of each county is appointed to a four year term by the Governor. In other counties,
the elected Treasurer is the Public Trustee for the concurrent term. The powers and duties of the office of Public Trustee
and procedures for the operation of the office are defined in Title 38 of the Colorado Revised Statutes. The areas covered
are:
- Foreclosures of Deeds of Trust for properties located in Arapahoe County.
- Releases of Deeds of Trust for properties located in Arapahoe County.
- Tax Escrow Accounts for Land Purchase Contracts for properties located in Arapahoe County.
Unique among the 50 states is the public trustee approach to the borrower/lender relationship. Colorado’s foreclosure statutes,
as interpreted by the courts, have provided a reasonably quick and inexpensive process for the lienor to exercise its rights
and remedies, while affording the owner of the property a fair opportunity to protect his or her interest.
For the Public Trustee to have the powers granted by statute, deeds of trust must grant such trustee an interest in the property
encumbered by the Deed of Trust. Any deed of trust that names anyone other than a Public Trustee is deemed to be a mortgage
for all purposes and would have to be foreclosed judicially.
Ample rights of cure is afforded the owner of the property being foreclosed and to each junior lienor having a record interest
in the property being foreclosed. To provide a foreclosing party certainty in its remedies, requirements and deadlines must
be met by all parties or the owners’ and lienor’ rights will be extinguished. It is the responsibility of the Public Trustee’s
office to ensure that the owners, junior lienors and lenders understand the Public Trustee’s process and to ensure that each
party complies with the statutes.
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