The Douglas County Public Trustee Office holds foreclosure sales at a public auction once a week at 402 Wilcox in Castle Rock 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.
There are two main types of foreclosures:
- The Public Trustee Foreclosure
Foreclosures conducted by the office of the Public Trustee.
- The Judicial Foreclosure
A judicial foreclosure is conducted through the court system on a mortgage, deed of trust, or judgment. The Judicial foreclosure is employed when no power of sale clause (Public Trustee) is included in the security instrument. In Colorado, if the Public Trustee is not included in the Deed of Trust, the lender must sue the borrower and obtain a court order to foreclose. Once the court orders a foreclosure, the court orders the Sheriff to conduct the foreclosure sale in accordance with the foreclosure laws.
Foreclosure ProcessForeclosure Timeline
Colorado Revised Statue 38-38-101 requires certain documents be filed with the Public Trustee in order to initiate a foreclosure. Although the law is very specific concerning what must be submitted and should be carefully reviewed, in general these documents include:
- Cover letter
- Notice of Election and Demand
- Original Evidence of Debt, or a copy of the Note with certificate from the attorney for the Holder of the Evidence of Debt certifying, among other things, the holder is in possession of the evidence of debit, is the current beneficiary and is a qualified holder under the law or a 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 Foreclosure Deferment Eligibility, if applicable (see C.R.S. 38-38-802)
- A deposit of the Combined Notice to be sent to the persons/entities on the mailing list. However, the Douglas County Public Trustee’s office has chosen to produce this document.
Title to the property vests with either the Certificate of Purchase holder or the final Certificate of Redemption holder on the 9th business day following the sale or the day after the last redemption period, whichever is later.
The Redemption provisions allow a junior lien holder to purchase the property either from the buyer that holds the certificate of purchase or the previous certificate of redemption holder, if there is one. For all junior lien holder redemptions, the junior lien holder must have a recorded interest in the property prior to the Notice of Election and Demand recording date and must submit the original or a certified copy of the recorded lien as part of the Intent to Redeem process.
See Section 38