Foreclosure Timeline 201

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we are sorry that we are a little behind on our blog! but below we have the second part of the foreclosure timeline. please be aware that this process is complex and you should consult an attorney before making any decisions regarding the foreclosure process.

 

Right to Cure

The borrower must give a minimum of 15 days written notice, prior to the sale of their intention to cure.

  • then, the public trustee must deliver a request for a statements of the sums to cure to the lender's attorney a minimum of 12 days before the sale. if this is not accomplished in time, the sale will be postponed 14 days.
  • the public trustee must receive the cure amount from the borrower by noon the day before the sale.
  • the statement must be valid for 10 days but no more than 30 days.

Failure to provide the statement within 10 business days of receipt of the request to cure or 8 days before the date of sale (the earliest of the two), then:

  • sale is automatically postponed for 1 week and continuously week after week until the cure statement is provided (but must be within 12 months from the original date)
  • interest is charged at the regular rate not the default rate during this time.

 

Default Cured

If the default has been cured, then:

  • a formal withdrawal must be filed with the public trustee if the NED has been recorded.
  • all costs to date must be paid including the fees of the public trustee and the withdrawal fee.
  • if a rule 120 proceeding has commenced, the proceeding must be withdrawn, or the order vacated - if the order has been granted.

if the foreclosing party fails to withdraw the sale, the public trustee can withdraw the sale after 45 days after the last possible date of sale.

 

Rule 120 Hearing - Colorado Rules of Civil Procedure Rule 120

  • the proceeding provides a court supervised procedure to confirm the existence of the default, the exercise of the power of sale in the deed of trust, and compliance with the Service Member Civil Relief Act 
  • the notice of the Rule 120 proceeding must be served on the borrower, record owner of the property, and all other persons who have an interest in the property at least 15 days before the date set for the hearing
  • not less than 15 days prior to the date of the hearing, a notice of the hearing must be posted in a conspicuous place
  • at least 15 days prior to the sale, the foreclosing party must obtain an order authorizing the sale from the district court.
  • the public trustee will not go to sale without this order and sale held without the order is invalid

Sale of Property by the Public Trustee

  • the lender must submit its bid no later than noon on the second business day prior to the date of the foreclosure sale. if this deadline is missed, the sale is continued for 7 days.
  • the public trustee will auction the property at the time and place stated in the notice of sale, but no less than 16 days after the date of the scheduled Rule 120 hearing.
  • on completion of the sale, the public trustee will issue a certificate of purchase to the successful bidder, and record a copy within 5 days of sale.

Rescission of the Sale

  • the sale can be rescinded without a court order, if the holder of the certificate of purchase is the foreclosing party.
  • rescission must be requested within 8 days after the sale.
  • if the sale has been rescinded, the lender can commence a new foreclosure sale scheduled not less than 30 days and not more than 45 days after the request for a new sale.

Redemption by Junior Lien Holders

  • all lien ors must file a notice of intention to redeem with the public trustee within 8 days after the sale, with copies of instruments evidencing the liens and a statement of the amounts required to redeem this lien.
  • the public trustee must fix the date of redemption on the 9th day after the sale. no redemption period is shortened or altered by the fact that a prior lien holder redeemed prior to the end of that lien holder's redemption period.
  • the lien holder having the most senior priority may redeem no earlier than 15 days and no later than 19 days after the date of sale.
  • thereafter, the lien ors holding the next junior lien may redeem within 5 days from the expiration of the previous lien holder's redemption period.
  • redemption periods cannot be shortened.
  • the redemption amount must be paid to the public trustee no later than noon on the last day of the redemption period.
  • special redemption periods apply for liens filed by the IRS, where the redemption period is 120 days from date of sale, and for liens in favor of the federal government

Expiration of Redemption Periods

  • on the expiration of all redemption periods, if no junior lien holder has redeemed, title vests automatically in the holder of the certificate of purchase.
  • if there has been a redemption by a junior lien holder, title will vest in that lienor, if no other junior lien holder has redeemed.

Confirmation Deed

The public trustee must execute and issue a public trustee's deed within 9 days after the expiration of all redemption periods, if the public trustee has received all fees and costs, 10 days, or 10 days after the date that the public trustee has received all fees and costs.