FORECLOSURE SALES. Eagle County Public Trustee Karen Sheaffer

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1 FORECLOSURE SALES Eagle County Public Trustee Karen Sheaffer

2 Created in 1894 by Colorado State Legislature Provides Checks and balances between Borrowers and Lenders Office acts as a neutral 3 rd party in processing foreclosures and releases of deeds of trust Gives the lender a fairly inexpensive process to exercise its rights while giving the borrower a fair opportunity to protect their interest in the property. Only known practicing Public Trustee State in the country. 10 Colorado counties have appointed Public Trustees 54 Colorado counties have combined Treasurer/Public Trustees

3 Public Trustee s Office Responsibilities * Foreclosures * Release of Deeds of Trust The Public Trustee s Office is obligated to follow all Colorado State Statutes.

4 Key Terms Foreclosure: The act to sell real property or timeshares at public auction in the event of default. Notice of Election and Demand: A document that is recorded with the Clerk and Recorder s office in order to legally start a foreclosure on a certain property. This document must be filed with the Clerk and Recorder s office within 10 working days of receipt of a foreclosure packet by the Public Trustee s office.

5 Key Terms Notice of Intent to Cure: A document filed with the Public Trustee s office requesting cure amounts by either the borrower or a lien holder (if the deed of trust is dated on or before October 1, 1990) Cure: The owner of the foreclosed property has the right to pay the past due amount on their mortgage (bring the mortgage current). Withdrawal of Notice of Election and Demand: A recorded document submitted by the foreclosing attorney that stops the foreclosure process.

6 Key Terms Certificate of Purchase: A legal document issued to the successful bidder and recorded in the Clerk and Recorder s office. One Certificate of Purchase is issued and held by the Public Trustee s office. Redemption Period: The time period after foreclosure sale in which junior lien holders have the right to pay the Certificate of Purchase Holder in full.

7 Key Terms Notice of Intent to Redeem: A document filed with the Public Trustee s office requesting redemption amounts by a junior lien holder. Certificate of Redemption: A legal document issued to the redeeming party and recorded in the Clerk and Recorder s office.

8 Key Terms Confirmation Deed: The final document issued by the Public Trustee s office confirming the transference of title to the Certificate of Purchase or Certificate of Redemption holder.

9 Commencing a Foreclosure: The Public Trustee s office receives a foreclosure packet from the foreclosing attorney C.R.S. Within 10 business days following the receipt of the foreclosure packet, the Public Trustee must record the Notice of Election and Demand. This recording officially starts the foreclosure process (3) & (8); C.R.S. Publications and Sale dates are set & (4) & (6) C.R.S. (Sale date: days from commencement)

10 Combined Notice: Within 20 days after commencement, the Public Trustee shall mail a Combined Notice to all parties on the initial mailing list provided by the foreclosing attorney C.R.S. The Combined Notice will then be sent to all parties on the supplemental mailing list provided by the foreclosing attorney. The 2 nd set of notices will be sent no less than 45 or more than 60 calendar days from the first scheduled sale date C.R.S. The Combined Notice must be published in a local newspaper for five consecutive weeks. The Public Trustee shall have no liability for any errors or omissions in the names and addresses set forth on the mailing list provided by the foreclosing attorney (9) C.R.S.

11 Curing A Default : The owner of the property being foreclosed, or any person liable thereon, any guarantor of the evidence of debt, and with respect to deeds recorded on or after October 1, 1990; any holder of an interest junior to the lien being foreclosed under a recorded instrument, as lienor, lessee, vendee, or easement or Certificate of Purchase holder shall be entitled to cure the default C.R.S. Written Notice of Intent to Cure must be received by the Public Trustee s office 15 days prior to the sale date. (Any persons with an interest in the property must give true copies of the instruments evidencing their right to cure - except the owner of the property being foreclosed.)

12 Curing a Default: At least 12 calendar days before the scheduled sale date, the Public Trustee will notify the foreclosing attorney that cure figures have been requested C.R.S. If cure figures are not timely received, the sale is postponed for 1 week (2)(b) C.R.S.

13 Curing a Default: On or before 12:00 noon on the day before the sale, the person curing shall pay to the Public Trustee the total amount required to cure (including Public Trustee fees) C.R.S. If a cure is received by the Public Trustee s office, the foreclosing attorney is notified, and the foreclosure is withdrawn.

14 Withdrawal of Notice of Election and Demand: The foreclosing attorney can file a written Withdrawal of Notice of Election and Demand for Sale with the Public Trustee s office. The Public Trustee s office will record the Withdrawal of Notice of Election and Demand with the Clerk and Recorder s office to terminate the foreclosure (11) C.R.S.

15 Public Trustee Foreclosure Sales: The foreclosing attorney must submit the lender s bid to the Public Trustee s office no later than 12:00 noon on or before the 2 nd business day prior to the date of sale. If bids are not received by that time, the Public Trustee s office will continue the sale for one week. The foreclosing attorney reserves the right to pull or continue sales up until 10:00 a.m. the day of the sale. The Public Trustee s office takes NO responsibility for bids that are pulled the day of the sale.

16 All Foreclosure Sale Bids from the lender will include the following: An itemization of all fees due under the Note and Deed of Trust being foreclosed. All costs and expenses allowable by the Note and Deed of Trust. Reasonable attorney s fees. Costs incurred by the owner of the note or the foreclosing attorney in enforcing the owner s lien or in defending, protecting and insuring the owners interest in the foreclosed property or any improvements located thereon, including, but not limited to:

17 Any general or special taxes, ditch or water assessments levied or accruing against the property. Any governmental or quasigovernmental lien, fine, penalty, or assessment against the property. Premiums on any property, casualty, general liability, title insurance acquiring to protect the property. Sums due on any prior lien or encumbrance on the property, such as a portion of an assessment by homeowner's association that constitutes a lien prior to the lien being foreclosed. If property is under a lease, all sums due under the lease

18 Reasonable costs and expenses to defend, protect, secure, maintain and repair such property and the holder s interest in such property, or the improvements on such property. Receiver s fees and expenses. Inspection fees. Court fees. Attorney fees. Other expenses that may be permitted by the Deed of Trust, Mortgage or other lien securing the debt or that may be authorized by the courts of competent jurisdiction (1-4)C.R.S.

19 Public Trustee Foreclosure Sales: The Public Trustee s office holds foreclosure sales every Wednesday at 10:00 a.m. Bidder s must register no later than 9:45 a.m. (bidders arriving later than 9:45 a.m. will be invited to stay and observe the proceedings but will not be allowed to participate). Investors must be present (or have a representative present) in order to place a bid. Beginning bids must bid at least $1.00 over the starting bid announced by the Public Trustee, and following bids must be in no more than $5, increments.

20 The Public Trustee s office must receive all bid monies at the time of sale. If money is not received, the property will be offered to the next highest bidder or returned to the foreclosing lender. Funds must be presented in the form of cash, certified or cashier s check or wire transfer (instructions will be provided upon request). Note: Verification of funds is required immediately prior to the start of the foreclosure sale.

21 Foreclosure Sales: Once the sale is completed, the Public Trustee will issue one original Certificate of Purchase. This Certificate of Purchase will be recorded in the Clerk and Recorder s office and once recorded will be held in the Public Trustee s office until all redemption periods have expired.

22 Redemption Periods: The property owner will no longer be entitled to redeem a foreclosure in foreclosures commenced after January 1, Junior lien holders will still have an opportunity to redeem. In order to redeem, junior lien holders will need to do the following: 1. File an intent to redeem with the Public Trustee within 8 business days of the sale. 2. Attach original documents evidencing their lien. 3. Attach a signed, acknowledged statement of the amount due on their lien (including interest). 4. Submit a $50.00 filing fee.

23 Redemption Periods: On the 9 th business day after the sale, all junior lien holder redemption periods are set, beginning no sooner than the 15 th business day after the sale. Each junior lien holder receives a 5 business day redemption period. The Public Trustee will request a redemption statement from the Certificate of Purchase holder. That redemption statement must be received within 13 business days of the sale date.

24 All Monies for Cures, Sales, or Redemptions must be in the form of Cash, Wire, or Certified Funds. NO PERSONAL CHECKS ARE ACCEPTED

25 Confirmation Deed: Once all redemption periods have expired, title transfers to the Certificate of Purchase or Certificate of Redemption holder. At that time, a Confirmation Deed can be requested. The fee for a Confirmation Deed is $36.00.

26 Foreclosure Process Foreclosure Filed: Notice of Election and Demand Recorded Sale Date Set (4-6 months after start) 1st Combined Notices Sent (20 days after start) Combined Notice Published (60 days after start) 2nd Combined Notice Sent (60 days from start) Confirmation Deed Issued (15 business days from sale date) Foreclosure Sale Held Bid Received from Foreclosing Attorney (2 days prior to scheduled sale date) 5:00 P.M. ON 15TH BUSINESS DAY FOLLOWING SALE: TITLE TRANSFERS TO NEW OWNER!

27 How do I find out what properties are in Foreclosure? The Public Trustee s s office must advertise each foreclosure for five weeks per Colorado State Statute. We advertise in the Eagle Valley Enterprise every Thursday. Public Trustee Foreclosure listings can be viewed at:

28 Statistics Number of Foreclosures Processed and Public Trustee s Deeds issued: Year # Received Real Property Timeshare Property PT Deeds Issued

29 Statistics Foreclosures Withdrawn Foreclosure Sold (1/1 11/3) (1/1 11/3) Foreclosures Deeded (1/1 11/3) (23% of 2009 Foreclosures Filed)

30 The Eagle County Public Trustee s s Office Thanks You for your time. For More information, visit us at Or Contact us at publictrustee@eaglecounty.us