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How to bid at Colorado Trustee auction
Want to buy a FORECLOSED house at the Public trustee auction in Colorado?
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The El Paso Public Trustee holds a foreclosure auction every Wednesday at 10 AM. If you are interested in trustee auctions in other 
counties, check out their web sites and it will tell you when there sale date is held. Here’s the web site that lists every trustee in Colorado, their contact info, and their web sites. Here’s some of the steps involved in bidding:
(1) Bidders must submit a bidder registration form (available at the El Paso Public Trustee website or at the Public Trustee reception desk) in person to the Public Trustee at the Auction. A separate form for each property is required.
(2) Bidders are required to hold their own money during the course of the auction
(3) Bidders must have certified funds (cash, cashier’s checks, teller’s checks, or official checks are the only acceptable options) equaling the amount of the bank’s bid plus $50.00. In some other Colorado counties, including Douglas County, the opening bid must be $100.00 over the bank’s bid.
(4) Checks are made payable to The El Paso Public Trustee. The Trustee’s Office will NOT accept checks made out to private parties, third-party individuals or companies.
It’s important to note that there is no longer any redemption period for the previous owner after a foreclosure sale in Colorado. If a property is sold at auction to an investor, the owner CANNOT redeem. They are no longer the owner of the property.
Also, once a property is purchased at auction by an investor, junior lien holders have eight days in which to purchase the property from the buyer for the sale amount plus interest.
If no other buyers come forward at the Trustee auction, the home is returned to the lender and the home will eventually come back on the market as an REO (Real Estate Owned).
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Kathy (719-287-1049) KTorline@msn.com
Do you want to buy a Foreclosure in Colorado Springs?
You want to buy a foreclosure?
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First, you have to decide at what stage of foreclosure you want to buy. There are three options:
- Pre-foreclosure (which is typically a short sale)
- Trustee’s auction (where the bank buys back the property or the property is bought by an investor)
- REO (for real estate owned by the bank).
Pre-foreclosure: These houses are in the foreclosure process, but they have yet to be sent to auction. Most owners are typically trying to sell them because they are “upside down,” they owe more on the house than it is worth. Homes are typically sold “as-is”.
This means that potential buyers must negotiate a deal with the lender (or lenders) as well as the owner. This is often called a short sale and it’s a complicated and slow process. One advantage is that a buyer can typically inspect the home before purchase. This may not be the case in other types of foreclosure sales.
In Colorado, a Notice of Election and Demand is filed, and then it’s approximately 120 days before the auction date.
Trustee’s auction: These sales CAN yield the lowest prices, but they have more risk. The house may NOT be available for inspection, as well as they still may be occupied. Also, in Colorado, you must bring certified funds to the Trustee’s auction to purchase the property.
Repossession: This occurs after the home has gone through the Trustee’s auction and the bank (or the government) gains possession of the property. Buyers can almost always perform a thorough inspection before closing, minimizing costly surprises. Plus, the property comes with a clear title. These properties are sold “as is”. The lenders normally won’t pay for repair of any cosmetic issues, but occassionally they will pay for some or all of repairs that are health and safety issues.
The next article will includes mistakes a foreclosure buyer can avoid.
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Kathy (719-287-1049) KTorline@msn.com
Shadow Inventory, fact or fiction?
Foreclosures and shadow inventory
As a Colorado Springs Realtor, I live and breath real estate news. There has been a lot of speculation lately on Shadow Inventory, and I’ve been thinking about how to figure out if the Colorado Springs housing market is going to have a problem with Shadow Inventory.
The term “Shadow Inventory” refers to homes owned by lenders that are not being offered for sale yet, but probably will be before 
long. The existence of a ’shadow’ inventory of homes for sale is a hard one to prove, but I did a little research, and here is what I found.
I looked at the Post Foreclosure Sale List from 6-24-09 from the El Paso County Public Trustee’s web site. This is a list of properties that completed the final stage of foreclosure in Colorado Springs, and were either bought back by the lender or purchased by an investor. I definitely found some properties on this list that were purchased back by the lender and still haven’t hit the market to be resold. As an example………
- 7150 Ravine Drive East, Certificate of Purchase went to BAC Home Loans Servicing for $198,072. Property has never hit the market to be resold
- 6993 Harrier drive, Colorado Springs, 80922, Certificate of Purchase went to the Colorado Housing and Finance Authority for $179,785.20. Property has never hit the market to be resold.
- 1524 Prairie Road, Colorado Springs, 80909, Certificate of Purchase went to the Colorado Housing and Finance Authority for $127,788.50. Property has never hit the market to be resold.
Some experts feel that lenders nationwide are sitting on hundreds of thousands of foreclosed homes that they have not resold or listed for sale. And foreclosures, which some banks unload at fire-sale prices, can be a major factor in pushing down home values.
Even though I only went through one foreclosure report from in June, it does make me think there may be shadow inventory; as there definitely seems to be properties that got foreclosed on that still haven’t hit the market. Only time will tell if the Shadow Inventory theory has merit to it and if it will affect our pricing in the Colorado Springs area.
Kathy (719-287-1049) KTorline@msn.com
NEW Colorado Springs Foreclosure Listings
NEW Colorado Springs Foreclosures homes as of December 31, 2009
During the December 2009, 151 foreclosures came on the market; 56 (37%) of them are already under contract.
Homes in Southeast Colorado Springs and Homes in the Powers area and Homes in Fountain are still continuing to see more foreclosures than other areas of the city.
For a FREE list of up-to-date Foreclosure Homes in Colorado Springs, Email KTorline@msn
Read the rest of this entry »
Foreclosures in Colorado Springs continue on the upswing
Foreclosures on the rise in El Paso County
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I was doing some research for a couple of clients on foreclosures this morning, and pulled up the current foreclosure reports for Colorado Springs as of November 30th, 2009 We’re definitely still on the upswing for foreclosure filings with a 16% increase in 2009 from 2008. Last year the average monthly rate for new foreclosures was 384, this year the monthly rate is 446. Here’s the link to the Report and here’s a quick summary of the last several years:
2004 2,298 Filings
2006 2,570 Filings Read the rest of this entry »
Banks, how low will they go?
WHAT CAN I EXPECT TO PAY?
For a FREE List of Foreclosures email Kathy Torline at KTorline@msn.com
I am consistently asked by buyers how much they can expect to pay for a Colorado Springs foreclosures. My research shows that short sales and foreclosure sell for right around 97% to 99% of the list price. If you think you will get a C
olorado Springs foreclosure or a Colorado Springs short sale for 50% off, you are wrong and wasting your time. These homes are already priced aggressively and ready to move. When you look at the SOLD price for the different categories, bank-owned home sold for 31% less than the “normal” sales in Colorado Springs Here’s a quick recap of September Sales:
Colorado Springs Foreclosures September 2009
- 114 Foreclosures Sold (14% of the total sales for the month)
- $147,189 Average Sales Price
- 99% Sold for Price vs. List Price
- Average days on market: 58
Foreclosure pick of the week in Northwest Colorado Springs
Colorado Springs Foreclosure pick of the week
Search for Foreclosures in Colorado Springs
There are currently some unique bank-owned houses for sale in Northwest and southwest Colorado Springs. My pick of the week is in Northwest Colorado Springs on 7151 Wintery Loop.
It’s located in a nice established area, on a great wooded lot, set a little bit back from the road. It includes over 2400 square feet, with 3 bedrooms, 3 baths, 2 car garage. The property was originally foreclosed on in August 2009. It definitely needs updating, as I’m not sure it’s had any updating since it was built in 1977. It’s like you’ve stepped back in time; from the carpet, to the kitchen, to the light fixtures, to the bathrooms. One of my favorite features is the unique long rectangular kitchen windows that looks right out into the pines. Amazing views!
I’m not sure how to Read the rest of this entry »
More and more bank owned properties seem to be coming on the market
Foreclosure Listings in Colorado Springs as of September 20, 2009
During the last 2 weeks, starting of September 6, 75 bank-owned properties came on the market; 17 (22%) of them are already under contract
For a FREE list of up-to-date Foreclosure Homes in Colorado Springs, Email KTorline@msn
Related article: 3 Things to know about foreclosure homes for sale
The Million Dollar Question
Related article: 3 Things to know about foreclosure homes for sale and Deal or no Deal
What is a Colorado Springs foreclosures?
FREE list of up-to-date foreclosures
First – Let’s define the word, Foreclosure. When buyers talk about foreclosure, what they mean is a bank-owned property that had been acquired through the foreclosure process.
What happens once the bank gets the property?
After the bank repossesses the property (typically at the Public Trustee Sale at the County courthouse), it is assigned to an Asset 
Manager and goes through several internal procedures before it is available for sale in the marketplace. One of the processes includes a market evaluation of the property which may include a full blown appraisal to tell the bank how much the property is worth. In some cases, the bank may order a BPO (Broker Price Opinion) from a real estate broker vs. a full-blown appraisal. Some banks order both appraisals and BPOs, or they may order multiple BPO’s. They may take the average price from the BPO’s or a combination of the appraisal and the BPO. The most important thing to remember, every lender seems to have a different process on how they price properties for sale. There is no set rule.
When a market value is established and procedures are completed, the property comes on the market available for sale to home buyers. This process may take 2 weeks, or months, months, and more months.
9638 Baltusrol – Foreclosure Date: 8/14/09
7872 Steward: Foreclosure Date: 8/31/09
6618 Bethesda: Foreclosure Date: 6/5/09
4849 Bluestem: Foreclosure Date: 3/25/09
2635 Deliverance: Foreclosure Date: 6/24/09
An important thing to remember: By the time, the property comes on the market, it is immaterial on how much was originally owed by the the previous homeowner. Banks are Read the rest of this entry »
64 new foreclosed properties came on the market last week
Foreclosure Listings in Colorado Springs as of July 25, 2009
During the week of July 20th, 64 bank-owned properties came on the market; 42 (65%) of them are already under contract, or pending.
For a FREE list of up-to-date Foreclosure Homes, Email KTorline@msn
Bidding wars on bank owned properties, the new “normal”
Are you interested in buying a bank-owned foreclosure?
Related Post: 70% of Foreclosed Properties go under contract in less than a week
For a FREE List of Foreclosures email Kathy Torline at KTorline@msn.com
What should I expect when buying a bank property?
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Be prepared to act fast. My research shows that 70% of bank-owned properties go under contract with 1 week of being put on the market. On many properties, the bank will accept the first acceptable offer they receive.
Since many of the foreclosure homes in Colorado Springs are priced anywhere from 10% to 25% under market value, these properties get many showings on them. There typically isn’t time to go back for 2 or 3 showings before a buyer makes a decision.
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Multiple bids are turning into the norm. Many bank-owned foreclosures in Colorado Springs are now in multiple bid situations. This means that the bank has received several offers (1 to 20) on the property all within the same day or two. Many banks then have each potential buyer sign a Read the rest of this entry »
New Foreclosure reporting bill signed by the Governor
Public Trustees are unique to Colorado
For a FREE List of Foreclosures email Kathy Torline at KTorline@msn.com
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The foreclosure process in Colorado is quite a bit different than in other states because the Governor appoints a 
“Public Trustee” for each county in the state. The trustee must act as an impartial party when handling a power of sale foreclosure. The Public Trustee acts as a representative of the lender to facilitate the sale, which typically occurs in the form of a public auction.
Because of these differences, national foreclosure reporting companies may report a Colorado foreclosed property as many as two to three times between the Notices of Election and Demand, and at the point of a public trustee sale, thereby inflating Colorado foreclosure figures.
Over the years, concerns have been raised that foreclosure numbers for Colorado are inflated versus other states that have already implemented standardized reporting procedures. This can put Colorado at a disadvantage when national numbers are analyzed and compared.
There is a new Bill, HB 1197
New help for Colorado homeowners facing foreclosure
f you are interested in a short sale, It’s important to utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record. Call Kathy Torline – Nordstrom, 719-287-1049.
Governor Ritter is expected to sign a new bill approved by the state Senate that will give 
homeowners facing foreclosure an 90 day window to try and work out a way to keep their homes. The bill would require the state to post a notice on the doors of foreclosed homes no later than 15 days after the foreclosure notice is delivered. The homeowner would then have five days to contact the state’s foreclosure hot line (1-877-601-hope) and set up an appointment with a foreclosure counselor. If the homeowners can prove they have income then the lender will be required to meet with them to try and work out a payment plan.
During the next 90 days, foreclosure proceedings would be suspended, although the homeowner would have to keep paying 2/3 of the mortgage payment. Mortgage brokers support the plan as they’re more interested in saving the investment than taking possession of the homes where it would show up as bad debt and that doesn’t help the lenders.
This new bill would certainly help many Colorado homeowners though not everyone would benefit. If the homeowner has no income due to a loss of a job, and they have no ability to repay the mortgage, there’s no help for them in this bill . The lenders are only required to meet with these homeowners, not come to an agreement with the owners, but many are willing to try, given all the foreclosed homes they’re carrying on their books.
Must Read posts:
If you enjoyed reading this article, why not Kathy (719-287-1049) KTorline@msn.com
Foreclosed homes for sale in West Colorado Springs
West – Market breakdown for Active Homes as of 2-20-09
Neighborhoods: Homes in Kissing Camels, Cedar Heights, Mesa, Chelsea Glen, Pleasant Valley, Holland Park
Active as of 2-20-09: 195
- Single Family Homes: 137 (70%)
- Condos/Townhomes/Patio Homes: 58 (30%)
Active homes for sale:
- Short sales: 20 (10.3%) Read the rest of this entry »
Plenty of Foreclosures for sale in Southwest Colorado Springs
Southwest Neighborhoods: Homes in Cheyenne Meadows, Stratmoor Village, Skyway, Broadmoor, Broadmoor Bluffs, Quail Ridge
Search for Homes in Southwest Colorado Springs
Active as of 2-14-09: 417
- Single Family Homes: 302 (72%)
- Condos/Townhomes/Patio Homes: 115 (28%)
Active homes for sale as of 2-14-09
- Short sales: 27 (6.5%)
- VA Owned: 1 (.2%) Read the rest of this entry »
Foreclosure Assistance, help is available
I have published this article before, but I came across MANY new resources that I wanted to add
f you are interested in a short sale, It’s important to utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record. Call Kathy Torline – Nordstrom, 719-287-1049.
When many Colorado Springs home owners are in financial trouble and not making their house payments, they go into denial. They are embarrassed, and they hope that the situation will go away. The problems usually won’t solve themselves. The fact is that the sooner a home owner faces up to the situation the better. There are options out there!
One of the first steps I do is to refer Colorado Springs home owners to some of the local and national hot-lines that are now available to help home owners. I want to make sure they are as educated as possible about their options before they decide to list their home as a short-sale. I also encourage them to talk to a lawyer and/or a tax accountant. A short sale may not be the right step for them; I want them to understand all of their options and pick the one that’s best for their situation.
Colorado Foreclosure Resources
One of the best resources around is the Foreclosure Hot-Line at 877-601-HOPE. There is also a local organization called The Pikes Peak Foreclosure Partnership at 719-444-8833.
National Foreclosure Resources
There is another national organization called Hope Now at 888-995-HOPE; and one of the great feature of this web site is links to many mortgage companies web sites. If you have a VA loan, the phone # is (719) or (303) 914-5650. If you have a HUD/FHA loan, the phone # is (303) 672-5216
The goal of Read the rest of this entry »
Economic Forecast Breakfast, 2008 called the Big Drop
Economic Forecast Breakfast
For a Free Colorado Springs Relocation Guide, Email Kathy Torline at KTorline@msn.com
On Thursday of this week, I had the privilege of attending the 18th annual Economic Forecast Breakfast at the Crown Plaza in Colorado Springs. It was packed with information and presentations from a residential real estate expert (Brian Maecker) , a commercial real estate expert (Doug Carter), an apartment expert (Kent Mau); and the City Manager of Colorado Springs, Dr. Penny Culbreth-Graft.
Brian Maecker’s presentation about Residential Real Estate was titled “2008, The Big Drop” and was stuffed full of charts and grafts showing residential prices in Colorado Springs. Essentially the average home sales prices in the Colorado Springs area is currently $213,466, Read the rest of this entry »
Oh no, don’t tell me you have other liens on your short sale property
Are you thinking about a short-sale on your property?
I learned a very valuable lesson last week on a short sale listing. I was having a conversation with a title company; 
and the Escrow Officer reminded me that I should order an O & E (Owner’s and Encumbrances) on my short sale listing. I did so, and surprise ……… there were two extra liens on the property; two judgements. The seller is diligently working to see if he can negotiate to get these liens released; but he’s not sure he can get them to go away. The liens are a large enough dollar amount, that if we don’t get them released, I don’t think we’ll get the lender to accept a short sale.
Consequently, I now ask these questions when pre-qualifiying a seller for a short-sale listing; as not every seller is a good candidate for a short sale. As much as I want to help sellers in trouble, I need to remind myself that I can’t solve all of their problems; especially when it comes to liens on the property. Some of the questions I now ask are:
- Do you have a second mortgage on the property? Or two? Even by an individual?
- Who owns Read the rest of this entry »
Foreclosure Colorado Springs, West Area including Kissing Camels
Homes in Colorado Springs
Market information for Active and Foreclosure Homes in West As of 1-7-09
For a FREE list of Foreclosure Homes, Email KTorline@msn.com
Neighborhoods: Kissing Camels, Cedar Heights, Mesa, Chelsea Glen, Pleasant Valley, Holland Park
Active Homes for Sale as of 1-10-09: 195
- Single Family Homes: 139 (71%)
- Condos/Townhomes/Patio Homes: 56 (29%)
Breakdown of homes for sale, INCLUDING FORECLOSURES, Read the rest of this entry »
What you MUST know about short sales on FHA loans
Colorado Short Sale Series – Part VII
Interested in selling your house as a short-sale? Email Kathy Torline KTorline@msn.com or call 719-287-1049
procedures for the FHA Pre-Foreclosure sale (PFS). The PFS is what FHA calls their Short Sale. If a seller is shorting an FHA loan, here’s some of the major things they need to know:- HUD used to have a rule that required the property to appraise for at least 63% of the indebtedness , this is no longer in affect.
- HUD used to accept 82% of the appraised value as their net – now it is 88% if it sells within 30-days marketing time, Read the rest of this entry »
