A Colorado broker is advising a client who wants to purchase a foreclosed property at a Public Trustee sale in Larimer County. The broker explains the redemption rights that apply after the sale. Which party has the primary right of redemption after a Colorado Public Trustee foreclosure sale, and what is the general redemption period for junior lienholders?
Correct Answer
B) Junior lienholders have redemption rights in order of priority; each lienholder has a specific redemption period after the sale
Under C.R.S. § 38-38-302 et seq., after a Colorado Public Trustee foreclosure sale, junior lienholders (such as second mortgage holders, judgment creditors) have the right to redeem the property in order of their lien priority. Each junior lienholder has a specific redemption period. The former homeowner generally does not have a statutory right of redemption after the sale in Colorado's non-judicial process, which distinguishes Colorado from some other states.
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Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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