The Douglas County Public Trustee Office holds foreclosure sales at a public auction once a week at the 301 Wilcox Building on - Wednesdays at 10:00 a.m. The auction is conducted by
the office of the Public Trustee on Deeds of Trust containing a power of sale
(right to sell property at public auction in the event of default). The procedures
for conducting the auction are set by Colorado State Statutes and the Public Trustee's office. A Deed of Trust is an agreement between three parties:
the grantor (owner), the Public Trustee (who has the power of sale) and the
beneficiary (lender).
There are three main types of foreclosures:
- The Public Trustee Foreclosure
Foreclosures conducted by the office
of the Public Trustee.
- The Tax Sale
The Tax Lien Sale is the sale of delinquent real estate taxes by the County Treasurer, thereby resulting in a tax lien against the property. The procedure is set by statute.
Please visit the Douglas County Treasurer's Web site for more information
regarding Tax Lien Sales.
- The Judicial Foreclosure
A judicial foreclosure is conducted through
the court system on a mortgage, deed of trust, or judgment. The procedure
for conducting the foreclosure is under Rule 105 of the Colorado Rules
of Civil Procedure. A mortgage is an agreement between two parties, the
mortgagor (owner) and the mortgagee (lender).
Colorado Revised
Statue 38-38-101 requires certain documents be filed with the Public
Trustee in order to initiate a foreclosure. These documents are:
- Cover letter
- Notice of Election and Demand
-
Original Evidence of Debt, or a copy of the Note with certificate from Holder of the Evidence of Debt, or a Corporate Surety Bond in the amount of one and one-half times the face amount of the original Evidence of Debt.
- Original Deed of Trust or certified copy, or copy with certification letter
-
List of names and addresses of parties to receive notice
- Any recorded affidavit used to modify the Deed of Trust
- Statement identifying the current owner
Notice of posting (see C.R.S. 38-38-802)
One other required document, the Combine Notice is produced by the Public Trustee's Office.
After the Public Trustee receives the required documents, the Public Trustee files a Notice of Election and Demand with the Clerk and Recorder. The owner now has at least 110 calendar days to cure or reconcile with the bank. For agricultural property the time is at least 215 days. Information concerning liens recorded against a property can be obtained by contacting the Douglas County Clerk and Recorder's Office at 303.660.7446.
The foreclosing
lender must produce a written bid no later than noon two business days before the Public Trustee sale. If a written bid is not received
from the lender for a property set for sale, then the sale is
postponed for at least one week. Parties interested in bidding must bid $100.00 over the lender's bid, which is read aloud at the time of sale. The bidding is competitive and done orally with the highest bidder winning. A certificate of purchase is issued to the bidder and held by the Public Trustee. Successful bidders must present cash or certified funds payable to "Douglas County Public Trustee" at time of foreclosure sale to cover the amount of their bid. The Certificate of Purchase is recorded with the Douglas County Clerk and Recorder. The equity interest under the Certificate of Purchase is fully assignable meaning that the Certificate of Purchase may be sold.
The
holder of a junior lien must file an Intent to Redeem with the
Office of the Public Trustee within 8 business days after the sale and pay the $50 fee. The Public Trustee will then obtain a redemption amount which will be for the amount from the bid winner including sale amount, per diem interest at the default rate of the note and any other expenses allowed by law. A lienor must present the redemption amount in cash or certified funds to the Public Trustee by the close of business on the final day of lienor's redemption period. The Public Trustee cannot accept late redemption proceeds.
At the time of filing an Intent to Redeem (C.R.S. 38-38-303(4)), the lienor or the lienor's attorney files a true and correct copy of the recorded instruments evidencing the lien or any assignment with evidence of recording affixed and an affidavit stating the amount to redeem such lienor's lien.
