Sandra is considering purchasing a property in Arapahoe County, Colorado using seller financing rather than a traditional bank loan. The seller agrees to carry the note and secure the loan with a deed of trust naming the county Public Trustee as trustee. If Sandra later defaults, which foreclosure process will apply?
Correct Answer
A) The same Public Trustee non-judicial foreclosure process that applies to institutional lender deeds of trust
In Colorado, the non-judicial Public Trustee foreclosure process under C.R.S. § 38-38-101 et seq. applies to any deed of trust recorded in Colorado — regardless of whether the lender is an institutional lender or a private seller. As long as the security instrument is a deed of trust naming the county Public Trustee, the same foreclosure process applies. Seller financing secured by a deed of trust is subject to the Public Trustee process.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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