How to File a Notice of Intent to Redem by Junior Lienor

Colorado Revised Statutes §38-38-303 governs how a junior lien holder may exercise his right to redeem the property in a Public Trustee foreclosure.

• The holder of a junior lien must file Notice of Intent to Redeem with the office of the Public Trustee, and pay the $50.00 fee for each Notice of Intent to Redeem, no later than 15 days before the expiration of the owner's redemption period. The owner’s redemption period is determined by the Public Trustee in accordance with statutory requirements and is either 75 days or six months from the foreclosure sale date. The Notice of Intent to Redeem must have attached to it a copy of the recorded instrument(s) evidencing the lien and any assignment of the lien with evidence of recording affixed by the county clerk and recorder's office and an affidavit of the lienor, signed by the redeeming lienor or the lienor's attorney, setting forth the amount required to redeem such lienor's lien. Please Note: Please Note: An agent for the lien holder cannot sign a Notice of Intent to Redeem.
• Junior lienors are entitled to redeem in the order of seniority as shown by the County Clerk and Recorder’s records based on the recording of the instruments evidencing their liens. The first (most senior in priority based on the recorded documents) junior lien holder has 10 days to redeem the property after the owner redemption period ends, and each subsequent junior lien holder then has five additional days to redeem the property.

Consenual Liens - Redemptions by Consensual Lien Holders

• A consensual lien for foreclosure redemption purposes is a conveyance of an interest in real property granted by the owner of the property, after the recording of a notice of election and demand, that is not an absolute conveyance of fee title in and to the property, without rights of rescission, reverter, or remainder. A consensual lien includes, but is not limited to, all deeds of trust, mortgages or other assignments, encumbrances or conveyances as security for the performance of the grantor, and all options, leases, easements, and contracts, including those specified in C.R.S. §38-38-305. Consensual liens do not include liens specified in C.R.S. §38-38-306 (judgment liens, mechanic’s liens, statutory liens) or C.R.S. §38-33.3-316 (homeowner's association liens).
• A property owner may grant as many consensual liens as he or she would like. The only consensual liens that have a right to redeem are liens that have been recorded not less than 15 calendar days prior to the end of the owner's redemption period and for which the lienor has filed a timely and proper Notice of Intent to Redeem. If more than three consensual liens encumbering the sold property are recorded after the recording of the notice of election and demand, only the holders of the three most senior of such consensual liens who have filed a timely notice of intent to redeem shall have a right to redeem. The priority of redemption and right to redeem is determined by the order of recording of the consensual liens. The order of redemption is determined by the recorded date of the lien, not by the date of the lien or the date that the Notice of Intent to Redeem was filed.

Lien Affidavits

A Notice of Intent to Redeem must have attached to it an affidavit of the lienor or the lienor's attorney (not an agent) stating the amount required to redeem the lienor’s lien.

A lienor redeeming must deliver to the Public Trustee with the redemption payment an affidavit of the lienor or lienor’s attorney stating:

• The amount owing on such lien;
• Costs and expenses actually incurred which are permitted by C.R.S. 38-38-303 (5) for which such lienor has filed with the public trustee receipts or invoices evidencing such costs and expenses incurred as of the last day of the owner's redemption period. These costs only include the premiums on any property, casualty, general liability, and title insurance acquired to protect the holder's interest in the property or the improvements comprising a part of such property. This affidavit must verify that such costs and expenses were actually incurred as of the last day of owner's redemption period: and
• The per diem amount that accrues on the total lien claimed thereafter.

If the amount owing under the redeeming lienor's lien as shown by the affidavit changes following the end of the owner's redemption period from the amount shown on the affidavit previously delivered to the Public Trustee, the redeeming lienor may at any time prior to such redeeming lienor's redemption submit a revised or corrected affidavit. Each junior lienor who redeems is issued a Certificate of Redemption the cost of which is added to the redemption amount. The fee for a Certificate of Redemption is $30.00, plus a recording fee of $6.00 for the first page and $5.00 for each additional page.

Each junior lienor who redeems is issued a Certificate of Redemption the cost of which is added to the redemption amount. The fee for a Certificate of Redemption is $30.00, plus a recording fee of $6.00 for the first page and $5.00 for each additional page.

A Public Trustee Deed is issued to the last redeeming junior lien holder after the expiration of all redemption periods (or the Certificate of Purchase holder if there are no Certificates of Redemption). The holder of the Certificate of Redemption must request the Public Trustee Deed in writing, surrender the original Certificate of Redemption and pay the $30.00 Public Trustee fee, plus recording costs.

Notice of Intent to Redeem and Affidavit of Amount Owed forms may be purchased from Bradford Publishing by calling 1-800-446-2831 or at their web-site at: http://www.bradfordpublishing.com.