Lisa Simpson
May 28,2008
In: Bank Foreclosures

Colorado bank foreclosures

Colorado has more than 7,200 foreclosed properties which provide a good opportunity to the investors and homebuyers to own a property at very low price. Colorado bank foreclosure properties include bank foreclosures, government foreclosed houses, federal homes, distressed properties and commercial foreclosures. All these properties are available in different areas of the state like Denver, Colorado Springs, Aurora and Lakewood. One can buy foreclosed properties in Colorado through agents, brokers, investors or homebuyers.

Non judicial foreclosure

The foreclosures in Colorado are primarily done through non-judicial foreclosure. In this type of foreclosure there is no court action but a notice related with an election to foreclose. The deed of trust contain a provision of a power of sale clause, and whenever there is defaulted payments by the borrower then the trustee will sell the property so as to recover the defaulted loan. The trustee is actually a part of the local government and operates from the office of Public Trustee. The Public Trustee is the representative of the lender and handles the sale procedure in a public auction. Due to no involvement of court there are stringent notice requirements and the legal documents with the power of sale.

Foreclosure procedure

Before starting the foreclosure the lender have to file a notice of election and demand to the public trustee of the county where the property is located. Then the Public Trustee records the notice in the recorder’s office within 10 business days of notice filing. The notice is then published at least once a week for 5 consecutive weeks in a local newspaper. The notice should be mailed to the defaulted borrower within 20 days after its first publication. The notice of sale must have information related with the date, time and place of sale, and also the default description, the lenders election to sell and the recording information from the deed of trust. The borrower has the right of redemption for foreclosures so he can claim his property after 75 days of the sale. He will have to submit intent to redeem at least 15 days before the end of the redemption period. The borrower will have to make payment that includes unpaid loan, taxes, costs and interest.

The lenders can also move to the court for a judicial foreclosure proceeding and the court then issues a final judgment of foreclosure. The property is then sold through a publicly noticed sale. The lender can file a complaint in the court along with the ails pendens which acts as a public notice document for the foreclosed property. The laws governing Colorado foreclosures are written in Title 38 Colorado Revised Statutes and Article 37, 38 and 39.