Definitions Of Foreclosure Terms

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

DEED OF TRUST - In Colorado, a mortgage is typically called a "Deed of Trust" which document is signed and taped at the time the residential or commercial property is purchased and financed. The Deed of Trust provides the Public Trustee the right to offer the residential or commercial property through foreclosure proceedings if the debtor 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 weapon after 1/1/08, a sale date is established someplace in between 110 and 125 days after the NED is taped to allow time for legal notice mailings and for paper publications to be finished. The original sale date may be continued upon demand of the lender or its lawyer or may be continued by the Public Trustee (however just under legally-defined circumstances).

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

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

INTEREST RATE - The percentage rate shown may be the ORIGINAL rate of interest on the loan and might not show the DEFAULT rate of interest on the loan. Default rates of interest normally go into result when payments on the loan are in defaults or unpaid.

CURRENT BENEFICIARY - It is a typical practice for mortgage companies to "offer" loans to other lenders or pools of lenders. The current lender (or recipient) of a loan will often not be the mortgage company that made the loan when the residential or commercial property was at first acquired.

CERTIFICATE OF PURCHASE - The general public Trustee problems this document to the effective bidder at the Foreclosure Sale to show that the successful bidder has an interest in the residential or commercial property. It is tape-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 lending institution or holder of the Certificate of Purchase, including lawyer's fees and costs and Public Trustee's charges and expenses, be paid in complete. If a residential or commercial property is redeemed before the deadline ends, a Certificate of Redemption will be issued and ultimately the holder of the last Certificate of Redemption provided 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 show the person/entity submitting a written quote (normally the foreclosing lender), the date the bid was formally made and the amount of the bid. Written bids are due from the foreclosing loan provider by midday TWO BUSINESS DAYS prior to the Foreclosure Sale date which details is published on the general public Trustee's website no later than Tuesday evening prior to the Sale Date.

DEFICIENCY AMOUNT - Foreclosing lenders must send bids that they believe 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 "deficiency amount" reflects the difference. If the residential or commercial property is sold for less than the quantity owed on the loan at the time of sale (plus all expenses and fees) the lending institution may attempt to gather the shortage quantity personally against the borrower through a different court action since the shortage quantity is NOT snuffed out by the foreclosure.

OVERBID AMOUNT - If somebody besides the foreclosing loan provider appears face to face at the Foreclosure Auction Sale and gets in a quote for at least $1.00 more than the composed bid sent 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 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 get in touch with the Public Trustee's office AFTER THE SALE occurs due to the fact that he/she MAY have funds due to him/her.

CONTINUANCE - The Foreclosure Sale Date might be continued at the demand of the lender or its lawyer, or it might be continued by the Public Trustee, for legally-defined reasons.

CURE - A "treatment" is made PRIOR TO THE FORECLOSURE SALE by just particular people/entities who have a legal right to treat 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 charges and expenses of the lending institution, lender's lawyer and Public Trustee), he must file with the Public Trustee's workplace a Notice of Intent to Cure AT LEAST 15 days prior to the arranged Sale Date.The Public Trustee's workplace then demands a "remedy" figure from the lending institution and provides that to the party submitting the Notice of Intent to cure. The owner (or other legally-entitled person) 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 Notification of Intent to Cure by those parties entitled to cure 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 "treatment.".
DEED or CONFIRMATION DEED - Once all redemption periods have actually ended and no redemption has been made (or a redemption has actually been made and a Certificate of Redemption has been provided and taped), the Public Trustee may release 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 tape-recorded with the Clerk & Recorder's workplace and transfers title to the residential or commercial property from the previous owners (debtors) 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 need 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 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 advised to speak with a lawyer.

MAILINGS - By law, the general public Trustee should mail notices and info to persons/entities specified on the mailing notes provided to the general public Trustee by the loan provider or its attorney.

REDEMPTION - A "redemption" is made AFTER the Foreclosure Auction Sale takes location and has actually numerous due dates related to it. If a redemption is made, a Certificate of Redemption is issued by the Public Trustee's office. Once the Certificate of Redemption has actually been issued by the Public Trustee, it is assignable to another person at the option 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 Public Trustee must publish a Notification or Combined Notice in a paper of basic circulation within Larimer County. The Notice needs to be released a minimum of 5 consecutive times over a duration of one month.

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

RESTART - When a debtor submits a Bankruptcy Petition prior to or throughout publication of the notification of foreclosure, the U.S. Bankruptcy Court will generally release a "stay order" needing that the foreclosure action not be continued up until additional notice from the court. If the Bankruptcy Court consequently provides an order granting "relief" from the stay order, then the foreclosure may be restarted.

WITHDRAWAL - A foreclosure may be withdrawn (or stopped) for a number of factors at the demand 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 according to statute. A withdrawal is usually always 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 described a lawyer for a foreclosure action, the attorney submits a Court action under Rule 120 of the Colorado Rules of Civil Procedure. The borrowers/owners are notified of the date and time for the Court hearing and may participate in that Court hearing. The purpose of the hearing is to supply the lender's attorney a chance to prove to the judge that a "reasonable 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 evidence provided whether or not there is an affordable possibility 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 office might sell a residential or commercial property on the Foreclosure Sale Date, it needs to have received from the lending institution's attorney assigned copy of the Order Authorizing Sale. Any Foreclosure Sale made without that Order is void.

ELIGIBLE FOR DEFERMENT or DEFERRED - a property/foreclosure case might be qualified for deferment (as figured out by the loan provider or its lawyer) if it meets the criteria of Colorado's Foreclosure Deferment Program (House Bill 09-1276 and House Bill 10-1240). If the residential or commercial property may be eligible, a notification is to be published on the residential or commercial property itself. In order for the property/foreclosure to be thought about to be DEFERRED or IN DEFERMENT it must be certified by a HUD-approved therapist after that therapist has talked to the residential or commercial property owner and figured out that qualification is suitable. If a foreclosure case remains in DEFERMENT and the borrower/property owner complies with all of the regards to the deferment, the sale date for the foreclosure auction may be continued for up to 90 days to allow time for the borrower/property owner to work with the lender on a loan adjustment arrangement.