Colorado Springs Vintage Homes Blog
719.287.1049
How to bid at Colorado Trustee auction
Want to buy a FORECLOSED house at the Public trustee auction in Colorado?
Related Articles
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).
If you enjoyed reading this article, why not Subscribe to be notified of the next one?
Kathy (719-287-1049) KTorline@msn.com
Do you want to buy a Foreclosure in Colorado Springs?
You want to buy a foreclosure?
Related Articles
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.
If you enjoyed reading this article, why not Subscribe to be notified of the next one?
Kathy (719-287-1049) KTorline@msn.com
Learn the Colorado foreclosure process, it’s different
Buying a Colorado Springs Foreclosed Homes — important to understand the trustee process
As a student of Foreclosures in Colorado, both to help sellers facing foreclosures, and to assist buyers looking to buy a Colorado Springs foreclosure, I’m always trying to learn more about the foreclosure process in Colorado. I attended a class this week
taught by Pete Griffiths, the in-house legal counsel for Land Title. Very good instructor, and definitely understands the legal process of foreclosures in Colorado Springs. Here’s some of the things I learned in the class that I thought I’d pass on.
- There was 50,514 foreclosures in Colorado in 2009.
- Legally, the definition of foreclosure in Colorado for contract purposes, is defined as a homeowner who is 30 days behind in their payments.
- Colorado is the only state that has a Public Trustee, whose duties are defined by statute.
- If you are the successful bidder on a foreclosed home at at the Public Trustee auction, you don’t automatically own the property. There are redemption periods for junior lien holders. Only at the end of the redemption periods (if junior lien holders don’t redeem) will you officially be the owner of the property.
- The majority of junior liens are “wiped out” if you are the successful bidder at the Public Trustee sale, but not everything goes away. it’s important to partner with a good title company who can give you information about other liens on the property including HOA liens and tax liens.
Remember, make sure and do your research
If you enjoyed reading this article, why not Subscribe to be notified of the next one?
Kathy (719-287-1049) KTorline@msn.com
The final step in the Colorado Foreclosure process – Part IV of Short Sale Series
Related Previous Posts:
- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
For a FREE List of Foreclosures email Kathy Torline at KTorline@msn.com
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.
CAN I BUY A PROPERTY AT THE PUBLIC TRUSTEE SALE?
Mortgage lenders in Colorado schedule Trustee Sales when the borrowers are in default and the situations are not resolved. One of the last steps in the foreclosure process is the public trustee sale. But if you are interesting in buying properties at the sale, it’s important to know that many sales get cancelled. Also, Read the rest of this entry »
