Definitions Of Foreclosure Terms

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


DEED OF TRUST - In Colorado, a mortgage is usually called a "Deed of Trust" and that document is signed and recorded at the time the residential or commercial property is acquired and financed. The Deed of Trust offers 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 developed somewhere between 110 and 125 days after the NED is taped to allow time for legal notification mailings and for paper publications to be finished. The original sale date might be continued upon request of the loan provider or its attorney or might be continued by the Public Trustee (but just under legally-defined situations).


ACTUAL SALE DATE - This is when the residential or commercial property is in fact sold at the Foreclosure Auction Sale. Once the Sale is really held, numerous due dates start to run.


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


RATES OF INTEREST - The portion rate revealed may be the ORIGINAL rate of interest on the loan and might not reflect the DEFAULT interest rate on the loan. Default interest rates normally enter into effect when payments on the loan are in defaults or overdue.


CURRENT BENEFICIARY - It is a common practice for mortgage companies to "offer" loans to other lenders or swimming pools of lending institutions. The present lending institution (or beneficiary) of a loan will regularly not be the mortgage business that made the loan when the residential or commercial property was at first purchased.


CERTIFICATE OF PURCHASE - The Public Trustee concerns this file to the successful bidder at the Foreclosure Sale to show that the effective bidder has an interest in the residential or commercial property. It is recorded with the Clerk & Recorder's workplace and made a public record.


LAST DATE TO REDEEM - This is the deadline for a redemption to be made - a redemption requires that ALL funds owing to the foreclosing lender or holder of the Certificate of Purchase, including lawyer's costs and expenses and Public Trustee's charges and expenses, be paid in complete. 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 issued will obtain 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 reflect the person/entity sending a composed bid (typically the foreclosing lending institution), the date the bid was officially 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 and that details is published on the general public Trustee's website no behind Tuesday night prior to the Sale Date.


DEFICIENCY AMOUNT - Foreclosing lenders should submit bids that they think are a reflection of the residential or commercial property's value at the time of the Foreclosure Sale. If the loan provider feels the residential or commercial property is worth less than the amount owed on it, the "shortage quantity" shows the difference. 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 loan provider may try to collect the shortage amount personally versus the customer through a different court action because the deficiency quantity is NOT snuffed out by the foreclosure.


OVERBID AMOUNT - If someone other than the foreclosing loan provider appears face to face at the Foreclosure Auction Sale and goes into a bid for at least $1.00 more than the composed quote submitted by the foreclosing loan provider, that is an "overbid" and the person entering it is called an "over bidder."


OVERBID OR EXCESS PROCEEDS - If the residential or commercial property goes to foreclosure auction sale and is bought 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 must contact the general public Trustee's workplace AFTER THE SALE takes place since he/she MAY have funds due to him/her.


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


CURE - A "treatment" is made PRIOR TO THE FORECLOSURE SALE by only 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 existing (plus all fees and costs of the lender, loan provider's attorney and Public Trustee), he should submit with the general public Trustee's office a Notification of Intent to Cure AT LEAST 15 days prior to the set up Sale Date.The Public Trustee's workplace then demands a "remedy" figure from the lending institution and supplies that to the party submitting 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 necessary to cure the default. If the sale date is CONTINUED to a later date, the due date to submit a Notification of Intent to Cure by those celebrations entitled to treat may 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 get out of foreclosure is through a "treatment.".


DEED or CONFIRMATION DEED - Once all redemption periods have actually expired and no redemption has been made (or a redemption has been made and a Certificate of Redemption has been released and taped), the general 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 brand-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 may have a right to redemption of the residential or commercial property according to law. Lienors need to have a taped 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 needs to submit a Notification 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 strongly encouraged to seek advice from with an attorney.


MAILINGS - By law, the Public Trustee must send by mail notices and info to persons/entities defined on the mailing notes provided to the general public Trustee by the lender or its lawyer.


REDEMPTION - A "redemption" is made AFTER the Foreclosure Auction Sale happens and has several due dates 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 actually been provided by the Public Trustee, it is assignable to someone else at the choice 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.


- By law, the Public Trustee should release a Notice or Combined Notice in a newspaper of general circulation within Larimer County. The Notice needs to be published at least 5 consecutive times over a duration of one month.


RESCISSION - The lending institution or its attorney may "rescind" (or void) the foreclosure sale after it has actually occurred. In order to rescind the sale, the foreclosing lender must be the effective bidder at the Foreclosure Sale and the holder of the Certificate of Purchase and a notice need to be given to the general public Trustee no behind 8 business days after the date of the Foreclosure Sale.


RESTART - When a borrower files an Insolvency Petition prior to or during publication of the notice of foreclosure, the U.S. Bankruptcy Court will typically provide a "stay order" needing that the foreclosure action not be continued till additional notice from the court. If the Bankruptcy Court consequently provides an order granting "relief" from the stay order, then the foreclosure might be rebooted.


WITHDRAWAL - A foreclosure might be withdrawn (or stopped) for several factors at the request of the loan provider or its lawyer or by the Public Trustee if the sale has actually been continued for too long a time period based on statute. A withdrawal is typically always processed when a remedy is made so that the foreclosure does not go forward.


RULE 120 COURT ACTION and ORDER AUTHORIZING SALE - When a loan is described an attorney for a foreclosure action, the lawyer submits a Court action under Rule 120 of the Colorado Rules of Civil Procedure. The borrowers/owners are alerted of the date and time for the Court hearing and might participate in that Court hearing. The function of the hearing is to offer the lending institution's attorney an opportunity to show to the judge that a "affordable likelihood" exists that the loan remains in default. If the borrower/owner does NOT appear at the court hearing, the court will think about from the proof presented whether or not there is a sensible probability that a default exists and after that, if so, will go into an Order Authorizing Sale to allow the foreclosure action to continue. Before the Public Trustee's workplace may sell a residential or commercial property on the Foreclosure Sale Date, it should have gotten from the loan provider's lawyer appointed 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 determined by the lender or its lawyer) 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 eligible, a NOTICE is to be posted on the residential or commercial property itself. In order for the property/foreclosure to be thought about to be DEFERRED or IN DEFERMENT it should be certified by a HUD-approved counselor after that counselor has spoken with the residential or commercial property owner and determined that credentials is proper. If a foreclosure case remains in DEFERMENT and the borrower/property owner abides by all of the terms of the deferment, the sale date for the foreclosure auction might be continued for as much as 90 days to permit time for the borrower/property owner to deal with the lending institution on a loan modification contract.