Foreclosure Law


Bid Statements

The foreclosure sale bid must be submitted to the public trustee no later than noon on the second business day before the date of sale. The bid must be signed by the attorney or signed and acknowledged by the holder. The Public Trustee is not responsible for the legitimacy or accuracy of the bid at a sale. Costs included in bid statements can include late payment charges, default interest, prepayment premiums, appraisal fees, engineering fees, inspection fees and costs and expenses relating to foreclosure. Costs can also include attorney fees. A deficiency bid occurs when the foreclosing party bids less than the amount of the debt. The difference between the debt and the bid is the deficiency. Failure to timely submit the bid will result in the public trustee continuing the sale from week to week.

The holder's bid will be made public upon receipt. The holder or holder's attorney need not attend the sale. The written bid may be amended by the holder or the holder's attorney no later than noon of the day before the sale in writing or electronically, or orally at the time of sale. A person amending the bid at sale must be physically present at the sale and must note the modification on the itemized bid and re-execute the bid at that time.

Bidding at Sale

Every bid by any bidder other than the holder of the evidence of debt secured by the lien being foreclosed, and any bid by that holder in excess of the total due to the holder as shown by the holder's written bid, require that the bid amount be received by the San Juan County Public Trustee no later than noon on the date of the sale. If the full payment of the bid amount from the highest bidder is not received, the next highest bidder who timely tenders the full amount of that bidder's bid is deemed the successful bidder.

Cash or certified funds must be tendered to the Public Trustee's office no later than noon on the date of the sale. After the Public Trustee is assured that funds are collected, a Certificate of Purchase will be issued by the Public Trustee and recorded at the Clerk &, Recorder's office. The original recorded Certificate of Purchase will be retained in the Public Trustee's office. There will be no duplicate Certificate of Purchase and the successful bidder will not receive the Certificate of Purchase from the Public Trustee. After all redemption periods have expired, a Public Trustee's Confirmation Deed will be issued upon request and receipt of funds.

Redemption Rights

Redemption rights are only available to the holders of interests' junior in priority to the lien foreclosed. A junior lien is a Deed of Trust or other liens/encumbrance subordinate to the Deed of Trust or other lien being foreclosed. To prevent misuse of the redemption process, the junior lien must be recorded prior to the Notice of Election and Demand.

The junior lienor must file the intent to redeem within 8 business days after the sale. An intent to redeem cannot be filed before the sale. The notice of intent to redeem may be filed late if no lienor junior to their lien has redeemed, their redemption period has not expired, a redemption period has been created by the timely filing of a notice of intent to redeem, and, the intent is accompanied by written authorization from the attorney or the certificate of purchase holder authorizing the public trustee to accept late notice, or, if a redemption has occurred, from the immediately prior redeeming lienor or their attorney. CRS 38-38-102 (I)(d)(IV).

The instrument evidencing the lien and any assignment of lien to the person seeking to redeem must be attached to the notice of intent to redeem. The instrument evidencing the lien must be the original or a certified copy, or in the case of a qualified holder a copy. The lienor must attach a signed and acknowledged statement of the lienor, or a signed statement of the lienor's attorney, with the amount required to redeem the lienor's lien. The amount includes per diem interest through the end of the lienor’s redemption period. The public trustee will, within one business day after receipt of the notice of intent to redeem, request a statement from the holder of the certificate of purchase or their attorney. The signed redemption statement must be submitted to the public trustee within 13 business days after the sale. The statement may be amended up until 2 business days before the start of the next applicable redemption period. The public trustee will transmit the statement to the party who filed the notice of intent to redeem no later than the start of their redemption period.

Redemption dates are set 9 business days after the sale date. The most senior lienor may redeem 15 to 19 business days after the sale but no later than noon of the final day. Each subsequent lienor has an additional 5 business days and must redeem by noon of the final day. Redemption periods are not shortened if someone redeems early.

There can be no partial redemptions. The lienor holding a lien on less than all of, or partial interest, in the property sold at the sale, must redeem the entire property. The public trustee may accept less than a full redemption amount with written authorization from the certificate of purchase holder, the certificate of redemption holder, or their attorney. An agreement to accept less than the full sum required for redemption by the certificate of purchase holder does not affect the amount of the deficiency bid at the sale. Any redemption constitutes a full redemption of all sums that the certificate of purchase holder is entitled.

Upon receipt of the redemption payment, a certificate of redemption will be recorded. Recording of the certificate of redemption will be no sooner than 15 business days following the sale nor later than 5 business days after receipt of redemption funds. The redemption certificate is assignable by endorsement or by separate assignment.

Redemption rights under federal law are separate and distinct from redemption rights under the Colorado foreclosure statutes. Any federal agency seeking to redeem under the Colorado statutes will be required to comply with all requirements of the Colorado statutes.

Right to Cure

The borrower has a right to cure monetary defaults. A cure is the payment of the sum of all amounts in which the secured debt is in default. Written notice of intent to cure must be given to the public trustee at least 15 calendar days before the date of sale. The curing party must also provide evidence of the right to cure. When the intent is received by the public trustee, the notice of intent will be provided to the foreclosing party with a request for a statement of all sums necessary to cure. The sums necessary to cure include all amounts in which the secured debt is in default (including permitted costs and expenses of the holder and holder's attorney), plus the fees, costs, and expenses of the foreclosure sale. The use of good faith estimates is authorized, so long as the cure statement states that it is a good faith estimate effective through the last day to cure as indicated on the cure statement.

The foreclosing party will file a statement of the cure amount with the public trustee. The statement must also state the period for which it is valid. A cure statement is effective for at least the earlier of 10 calendar days after the date of the cure statement or 12 noon the day before sale but not more than 30 calendar days. The amount must be paid to the public trustee by noon the day before the sale.

The sale will be automatically postponed if the foreclosing party does not provide a statement of the sums due. The foreclosing attorney must provide the cure statement to the Public Trustee within ten (10) business days or by close of operations at the Public Trustee's office on the 8th calendar day before sale whichever comes first.

If the sale is continued for failure to provide a cure statement and a cure is subsequently made, interest is allowed at the regular rate provided in the evidence of debt for the period the sale was continued. If no cure is made, interest at the default rate is allowed for that period.

Waiver of the right to cure, or an agreement to shorten the time period to exercise a right of cure, made before the date of default under the instrument evidencing the lien being foreclosed, or under the evidence of debt secured by the lien being foreclosed, is void against public policy.