Definitions Of Foreclosure Terms

NED RECORDED - The notification of Election & Demand for Foreclosure (NED) is the FIRST record the general public Trustee's workplace receives from the lending institution or its attorney. This is recorded with the Clerk & Recorder's workplace and the foreclosure is officially started at this time.


DEED OF TRUST - In Colorado, a mortgage is usually called a "Deed of Trust" and that document is signed and taped at the time the residential or commercial property is purchased and funded. The Deed of Trust gives the Public Trustee the right to offer the residential or commercial property through foreclosure procedures if the customer defaults on the regards to the Deed of Trust or Promissory Note (non-payment or other default).


ORIGINAL SALE DATE - When a foreclosure is be gun after 1/1/08, a sale date is established somewhere between 110 and 125 days after the NED is recorded to permit time for legal notice mailings and for paper publications to be finished. The original sale date might be continued upon demand of the lender or its lawyer or might be continued by the Public Trustee (however just under legally-defined situations).


ACTUAL SALE DATE - This is when the residential or commercial property is in fact cost the Foreclosure Auction Sale. Once the Sale is really held, several deadlines begin to run.


LOAN TYPE - Some different kinds of loans are: Conventional, VA, FHA or Unknown.


RATE OF INTEREST - The portion rate revealed might be the ORIGINAL interest rate on the loan and might not reflect the DEFAULT interest rate on the loan. Default rate of interest usually enter into effect when payments on the loan are in arrears or past due.


CURRENT BENEFICIARY - It is a typical practice for mortgage companies to "sell" loans to other lenders or swimming pools of lending institutions. The current lending institution (or beneficiary) of a loan will regularly not be the mortgage company that made the loan when the residential or commercial property was initially purchased.


CERTIFICATE OF PURCHASE - The Public Trustee issues this document to the successful bidder at the Foreclosure Sale to reveal that the successful bidder has an interest in the residential or commercial property. It is tape-recorded with the Clerk & Recorder's office and made a public record.


LAST DATE TO REDEEM - This is the due date for a redemption to be made - a redemption requires that ALL funds owing to the foreclosing lending institution or holder of the Certificate of Purchase, consisting of lawyer's costs and expenses and Public Trustee's charges and costs, be paid in full. If a residential or commercial property is redeemed before the deadline expires, a Certificate of Redemption will be provided and eventually the holder of the last Certificate of Redemption provided will acquire ownership of the residential or commercial property through a Public Trustee's Confirmation Deed. NOTE: For all cases began after 1/1/08 the residential or commercial property owner NO LONGER HAS A RIGHT TO REDEEM the residential or commercial property after the Foreclosure Sale.


BID AMOUNT, PENDING BID and BIDDER INFORMATION - These terms show the person/entity sending a written bid (usually the foreclosing lender), the date the quote was formally made and the quantity of the bid. Written quotes are due from the foreclosing lending institution by midday TWO BUSINESS DAYS prior to the Foreclosure Sale date which info is published on the Public Trustee's website no later on than Tuesday evening prior to the Sale Date.


DEFICIENCY AMOUNT - Foreclosing lenders must send quotes that they believe are a reflection of the residential or commercial property's value at the time of the Foreclosure Sale. If the lender feels the residential or commercial property deserves less than the quantity owed on it, the "deficiency quantity" reflects the distinction. If the residential or commercial property is offered for less than the amount owed on the loan at the time of sale (plus all costs and charges) the lending institution may try to collect the shortage amount personally against the customer through a separate court action since the shortage quantity is NOT extinguished by the foreclosure.


OVERBID AMOUNT - If someone besides the foreclosing lender appears face to face at the Foreclosure Auction Sale and enters a bid for a minimum of $1.00 more than the composed bid submitted by the foreclosing lender, that is an "overbid" and the individual entering it is called an "over bidder."


OVERBID OR EXCESS PROCEEDS - If the residential or commercial property goes to foreclosure auction sale and is purchased for MORE than the TOTAL OWED to the lender and to all other lien holders, the owner of the residential or commercial property at the time the foreclosure was started need to call the Public Trustee's office AFTER THE SALE happens since he/she MAY have funds due to him/her.


CONTINUANCE - The Foreclosure Sale Date may be continued at the request of the lending institution or its lawyer, or it may be continued by the Public Trustee, for legally-defined factors.


CURE - A "treatment" is made PRIOR TO THE FORECLOSURE SALE by just particular people/entities who have a legal right to cure the default on the mortgage or Deed of Trust. If a residential or commercial property owner (or other legally-entitled individual) believes he can bring the past-due payments present (plus all costs and costs of the lender, lender's lawyer and Public Trustee), he should file with the general public Trustee's office a Notice of Intent to Cure a minimum of 15 days prior to the set up Sale Date.The Public Trustee's office then demands a "treatment" figure from the loan provider and supplies that to the party filing the Notice of Intent to cure. The owner (or other legally-entitled individual) has ONLY UNTIL 12:00 NOON on the day PRIOR to Sale Date to pay all funds essential to treat the default. If the sale date is CONTINUED to a later date, the deadline to submit a Notice of Intent to Cure by those parties entitled to treat might also be extended.


- Since the residential or commercial property owner NO LONGER HAS A RIGHT TO REDEEM the residential or commercial property AFTER the Foreclosure Sale, the opportunity to keep the residential or commercial property and leave foreclosure is through a "cure.".


DEED or CONFIRMATION DEED - Once all redemption durations have actually ended and no redemption has been made (or a redemption has been made and a Certificate of Redemption has been released and tape-recorded), the Public Trustee may issue a Public Trustee's Confirmation Deed to the holder of the Certificate of Purchase or the holder of the last-issued Certificate of Redemption. The Deed is then taped with the Clerk & Recorder's workplace and transfers title to the residential or commercial property from the previous owners (customers) to the new owner.


LIENORS - There may be more than one deed of trust or other lien on a residential or commercial property. Anyone who holds a lien on a residential or commercial property is called a "lienor" and might have a right to redemption of the residential or commercial property according to law. Lienors require to have a documented interest in the residential or commercial property being foreclosed PRIOR to the NED recording date. In order to redeem the residential or commercial property in foreclosure, a lienor must submit a Notice of Intent to Redeem within the time defined by law. Lienors interested in exercising their legal rights on a foreclosure residential or commercial property are highly advised to speak with an attorney.


MAILINGS - By law, the Public Trustee need to send by mail notifications and information to persons/entities specified on the mailing lists offered to the general public Trustee by the lender or its lawyer.


REDEMPTION - A "redemption" is made AFTER the Foreclosure Auction Sale occurs and has actually numerous deadlines related to it. If a redemption is made, a Certificate of Redemption is released by the Public Trustee's workplace. Once the Certificate of Redemption has been released by the Public Trustee, it is assignable to somebody else at the alternative of the holder. The residential or commercial property owner NO LONGER HAS A RIGHT TO REDEEM the residential or commercial property AFTER the Foreclosure Sale.


PUBLICATION - By law, the general public Trustee need to release a Notice or Combined Notice in a paper of basic blood circulation within Larimer County. The Notice needs to be published a minimum of 5 successive times over a period of one month.


RESCISSION - The lender or its lawyer may "rescind" (or space) the foreclosure sale after it has occurred. In order to rescind the sale, the foreclosing loan provider should be the effective bidder at the Foreclosure Sale and the holder of the Certificate of Purchase and a notification should be provided to the general public Trustee no later than 8 business days after the date of the Foreclosure Sale.


RESTART - When a debtor files a Bankruptcy Petition prior to or during publication of the notification of foreclosure, the U.S. Bankruptcy Court will usually provide a "stay order" needing that the foreclosure action not be continued until more notification from the court. If the Bankruptcy Court subsequently releases an order approving "relief" from the stay order, then the foreclosure may be restarted.


WITHDRAWAL - A foreclosure might be withdrawn (or stopped) for several factors at the demand of the lending institution or its attorney or by the Public Trustee if the sale has been continued for too long a period of time based on statute. A withdrawal is typically constantly processed when a treatment is made so that the foreclosure does not move forward.


RULE 120 COURT ACTION and ORDER AUTHORIZING SALE - When a loan is referred to a lawyer for a foreclosure action, the lawyer files a Court action under Rule 120 of the Colorado Rules of Civil Procedure. The borrowers/owners are informed of the date and time for the Court hearing and might attend that Court hearing. The purpose of the hearing is to supply the loan provider's attorney a chance to prove to the judge that a "reasonable probability" exists that the loan is in default. If the borrower/owner does NOT appear at the court hearing, the court will consider from the proof provided whether or not there is a sensible that a default exists and then, if so, will enter an Order Authorizing Sale to permit the foreclosure action to proceed. Before the Public Trustee's workplace might sell a residential or commercial property on the Foreclosure Sale Date, it should have gotten from the lending institution's lawyer designated copy of the Order Authorizing Sale. Any Foreclosure Sale made without that Order is invalid.


ELIGIBLE FOR DEFERMENT or DEFERRED - a property/foreclosure case might be eligible for deferment (as identified by the lending institution or its attorney) if it satisfies the requirements of Colorado's Foreclosure Deferment Program (House Bill 09-1276 and House Bill 10-1240). If the residential or commercial property might be qualified, a NOTICE is to be published on the residential or commercial property itself. In order for the property/foreclosure to be considered to be DEFERRED or IN DEFERMENT it need to be licensed by a HUD-approved therapist after that counselor has actually sought advice from the residential or commercial property owner and identified that certification is proper. If a foreclosure case is IN DEFERMENT and the borrower/property owner complies with all of the regards to the deferment, the sale date for the foreclosure auction might be continued for up to 90 days to enable time for the borrower/property owner to deal with the lending institution on a loan adjustment arrangement.