A buyer in Garfield County, Colorado is obtaining a new loan to purchase a home. The lender requires a deed of trust. The buyer asks her broker why the deed of trust names the 'Garfield County Public Trustee' instead of the lender as the trustee. What is the most accurate explanation the broker should give?
Correct Answer
A) The Public Trustee holds bare legal title as a neutral third party so that foreclosure can be conducted non-judicially without a court lawsuit
In Colorado's deed of trust system (C.R.S. § 38-38-101 et seq.), the county Public Trustee serves as the neutral third-party trustee who holds bare legal title to the property. This arrangement allows the lender (beneficiary) to foreclose non-judicially — without filing a lawsuit — by directing the Public Trustee to sell the property upon default. The Public Trustee's role as trustee is what makes non-judicial foreclosure possible in Colorado.
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