No later than 12 noon on Monday before the sale (or the previous Friday if the Monday is a holiday) the foreclosing lender must produce a written bid to purchase the property. This becomes the lender’s minimum bid for the Public Trustee auction. Lenders may amend their bids in writing until Tuesday at noon or in person at the time of the sale. If a bid is not received from the lender for the property set for sale, the sale on that property is continued for at least one week.
Special Requirements for HOA Lien Holders
Douglas County requires the following documentation for all HOA lien holders wanting to redeem an HOA lien:
If there is an Internal Revenue Service (IRS) or U.S. Government agency (i.e. Small Business Administration or U.S. Treasury) lien against the property, the agency may file an intent to redeem with the Public Trustee and must follow the junior lienholder redemption process outlined in the state statutes. In addition, under federal law, the IRS may redeem independently of Colorado law up to 120 days, but the Public Trustee office is not involved in the redemption.
After an Intent to Redeem has been filed with the Public Trustee, the Certificate of Purchase holder must prepare a Redemption Statement that specifies all sums necessary to redeem including: the amount of the purchase price from the foreclosure sale, the interest rate and amount through the 19th business day post-sale, costs and expenses actually incurred which are permitted by C.R.S. 38-38-107 which usually costs to secure the property, insurance, inspections, immediate repairs, etc. with receipts or invoices evidencing the costs and expenses incurred.
The statement shall be submitted to the Public Trustee no later than 13 days after the sale. A statement may be amended no later than two business days prior to the start of the redemption payoff period.
A redeeming lienholder must present the redemption amount in cash, certified funds, or federal wire transfer to the Public Trustee by the close of business before 12 noon on the final day of the redemption period. The Public Trustee cannot accept late redemption proceeds. A Certificate of Redemption is issued to the party redeeming the property from foreclosure.
Confirmation Deed (Transfer of Title)
Title does not transfer until the end of the 8th business day after the sale, or at the conclusion of all established redemptions periods. Until that time, the owner prior to sale remains the owner with full right to continue occupying the property.
Cash or certified funds must be tendered at the time of sale. The lender’s bid, which is the opening bid, is available after 5:00 p.m. on Monday the week of the sale.
Information concerning liens recorded against a property can be obtained by contacting the Douglas County Clerk and Recorder’s Office at 303.660.7446 or emailing [email protected]. The Public Trustee’s office does not have information regarding recorded liens against a property. Please be aware that there may be other liens outside of Douglas County.