Every Friday I receive a report containing all of the Notices of Election and Demand  that took place that week along the front range.  A Notice of Election and Demand  (NED) is the very first step in the foreclosure process.  During the peak of the housing bubble bust, we were seeing 700 to 1000 NEDs being filed every week in Colorado.  Over this past year, the number has dropped, but continues to still be high.  There have been weeks where the numbers were in the 300 range, but over the past couple of months, they have consistently been in the 500 range.  For the week ending on December 16, 2011, there were 583 Notices filed.

Below, is the Foreclosure Process Timeline Highlights as described by Land Title Guarantee Co:

 

 

Foreclosure Timeline Highlights - Effective January 1, 2008

Pre-foreclosure:

• Lender decides to foreclose and elects to foreclose with the Public Trustee on their Deed of Trust or through the courts judicially on their PromissoryNote

• Attorney hired and documentation sent from lender

• Attorney prepares Mailing List and all documentation for presentation to the Public Trustee

• Attorney sets hearing for Rule 120 Order that authorizes Public Trustee to auction property if no cure occurs before sale date—Public Trustee must have prior to sale Cure period:

• Notice of Election and Demand recorded by Public Trustee within 10 working days

• Determination made by Public Trustee if property non-agricultural or agricultural within 10–20 days—based on legal description of property

• Sale date set from NED recording date

• 110–125 days for non-agricultural property

• 215–230 days for agricultural property

• NED and Combined Notice sent to owner, any guarantor on the note, and occupant only

• Notice of Intent to Cure must be filed 15 days prior to sale date

• 45–60 days prior to sale, NED and Combined Notice sent to all parties on Mailing List

• Sale date published for 5 consecutive weeks prior to sale

Sale occurs and Redemption begins:

• Certificate of Purchase to highest bidder recorded by Public Trustee

• No owner redemption period.

• Any junior creditor with lien recorded prior to NED or with any involuntary lien such as a judgment,HOA lien, mechanic’s lien or IRS lien that records after the NED, can file a Notice of Intent to Redeem within 8 business days

• 1st junior creditor: 5-19 business days to redeem

• 2nd or after: 5 business days to redeem

• Redemption prior to 12 noon on last day

• If junior creditor redeeming, Certificate of Redemption and Public Trustee’s Deed

• If no redemption, Public Trustee’s Deed to holder of the Certificate of Purchase or any assignee

• All other liens no longer affect property after Public Trustee’s Deed unless HOA, mechanic’s lien(s), municipality lien(s), taxes, omitted party or senior lien(s)

 

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