§ 38-38-302 — Redemption by lienor - procedure - definition
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(1) Requirements for redemption. A lienor or assignee of a lien is entitled to redeem if
the following requirements are met to the satisfaction of the officer:
(a) The lienor's lien is a deed of trust or other lien that is created or
recognized by state or federal statute or by judgment of a court of competent
jurisdiction;
(b) The lien is a junior lien as defined in section 38-38-100.3 (11);
(c) The lienor's lien appears by instruments that were duly recorded in the
office of the clerk and recorder of the county prior to the recording of the notice of
election and demand or lis pendens and the lienor is one of the persons who would
be entitled to cure pursuant to section 38-38-104 (1), regardless of whether such
lienor filed a notice of intent to cure. If, prior to the date and time of the recording
of the notice of election and demand or lis pendens, a lien was recorded in an
incorrect county, the holder's rights under this section shall be valid only if the lien
is rerecorded in the correct county at least fifteen calendar days prior to the actual
date of sale.
(d) The lienor has, within eight business days after the sale, filed a notice
with the officer of the lienor's intent to redeem; except that, if the person is deemed
an alternate lienor pursuant to section 38-38-305.5 and the lien being foreclosed is
a unit association lien, the alternate lienor has thirty days to file the notice with the
officer of the alternate lienor's intent to redeem. A lienor may file a notice of intent
to redeem more than eight business days after sale if:
(I) No lienor junior to the lienor seeking to file the late intent to redeem has
redeemed;
(II) The redemption period for the lienor seeking to file the late intent to
redeem has not expired;
(III) A redemption period has been created by the timely filing of a notice of
intent to redeem; and
(IV) The notice of intent to redeem is accompanied by a written authorization
from the attorney for the holder of the certificate of purchase according to the
records of the officer conducting the sale, or, if no attorney is shown, then the
holder of the certificate of purchase, or, if a redemption has occurred, from the
immediately prior redeeming lienor, or the attorney for the immediately prior
redeeming lienor, authorizing the officer to accept such notice of intent to redeem.
(e) The lienor has attached to the notice of intent to redeem the original
instrument and any assignment of the lien to the person attempting to redeem, or
certified copies thereof, or in the case of a qualified holder, a copy of the
instrument evidencing the lien and any assignment of the lien to the person
attempting to redeem. If the original instrument is delivered to the officer, the
officer shall return the instrument to the lienor and retain a copy.
(f) The lienor has attached to the notice of intent to redeem a signed and
properly acknowledged statement of the lienor, or a signed statement by the
lienor's attorney, setting forth the amount required to redeem the lienor's lien,
including per diem interest, through the end of the nineteenth business day after
the sale with the same specificity and itemization as required in section 38-38-106.
If the amount required to redeem the lienor's lien shown on the statement is zero,
the lienor has no right to redeem unless section 38-38-305 applies.
(2) Request for redemption amount. Upon receipt by the officer of the
notice of intent to redeem filed by a person entitled to redeem under this section,
the officer shall within one business day transmit by mail, facsimile, or other
electronic means to the attorney for the holder of the certificate of purchase, or if
no attorney, then to the holder, a written request for a written or electronic
statement of all sums necessary to redeem the sale. The statement shall include
the amounts required to redeem in accordance with this section.
(3) Statement of redemption. (a) Upon receipt of notice that an intent to
redeem was filed, the holder of a certificate of purchase shall submit a signed and
acknowledged statement, or the attorney for the holder shall submit a signed
statement, to the officer, no later than thirteen business days following the sale,
specifying interest calculated through the date of the sale, the amount of per diem
interest accruing thereafter, the interest rate on which the amount is based, and all
other sums necessary to redeem as of the date of the statement. Interest on the
amount for which the property was sold must be charged at the default rate
specified in the evidence of debt, deed of trust, or other lien being foreclosed or, if
not so specified, at the regular rate specified in the evidence of debt, deed of trust,
or other lien being foreclosed. If different interest rates are specified in the
evidence of debt, deed of trust, or other lien being foreclosed, the interest rate
specified in the evidence of debt prevails. If the evidence of debt does not specify
an interest rate, including a default interest rate, the applicable interest rate as
specified in the deed of trust or other lien being foreclosed applies. A holder of the
certificate of purchase that is not a qualified holder, or the attorney for the holder,
shall also submit to the officer receipts, invoices, evidence of electronic account-to-account transfers, or copies of loan servicing computer screens evidencing the fees
and costs and verifying that the fees and costs were actually incurred as of the
date of the statement, along with the per diem amounts that accrue after the date
of sale. The holder or the attorney for the holder may amend the statement from
time to time to reflect additional sums advanced as allowed by law, but the
statement shall not be amended later than two business days prior to the
commencement of the redemption period pursuant to subsection (4)(a) of this
section or each subsequent redemption period pursuant to subsection (4)(b) of this
section.
(b) If the holder of the certificate of purchase or the attorney for the holder
fails to submit the initial written statement to the officer within thirteen business
days after the sale, the officer may calculate the amount necessary to redeem by
adding to the successful bid the accrued interest from the sale through the
redemption date. The accrued interest shall be calculated by multiplying the
amount of the bid by the regular rate of annual interest specified in the evidence of
debt, deed of trust, or other lien being foreclosed, divided by three hundred sixty-five and then multiplied by the number of days from the date of sale through the
redemption date. The officer shall transmit by mail, facsimile, or other electronic
means to the party filing the notice of intent to redeem, promptly upon receipt, the
statement filed by the holder, or if no such statement is filed, the officer's estimate
of the redemption figure, which shall be transmitted no later than the
commencement of the redemption period pursuant to paragraph (a) of subsection
(4) of this section or each subsequent redemption period pursuant to paragraph (b)
of subsection (4) of this section.
(4) Redemption period.
(a) (I) Except as provided in subsection (4)(a)(II) of this section, no sooner than
fifteen business days nor later than nineteen business days after a sale under this
article 38, the junior lienor having the most senior recorded lien on the sold
property or any portion of the sold property, according to the records, having first
complied with the requirements of subsection (1) of this section, may redeem the
property sold by paying to the officer, no later than 12 noon on the last day of the
lienor's redemption period, in the form specified in section 38-37-108, the amount
for which the property was sold with interest from the date of sale, together with all
sums allowed under section 38-38-301. Interest on the amount for which the
property was sold is charged at the default rate specified in the evidence of debt,
deed of trust, or other lien being foreclosed or, if not so specified, at the regular
rate specified in the evidence of debt, deed of trust, or other lien being foreclosed.
If different interest rates are specified in the evidence of debt, deed of trust, or
other lien being foreclosed, the interest rate specified in the evidence of debt
prevails. If the evidence of debt does not specify an interest rate, including a
default interest rate, the applicable interest rate as specified in the deed of trust or
other lien being foreclosed applies.
(II) (A) If the lien being foreclosed is in a unit association lien, an alternate
lienor's redemption period commences upon the expiration of all redemption rights
as set by the officer in accordance with subsection (4)(d) of this section and is no
sooner than thirty-five days after the sale. This subsection (4)(a)(II) does not
otherwise change the requirements of this section for an alternate lienor.
(B) No sooner than thirty-five days and no later than one hundred eighty days
after a sale of a unit association lien under this article 38, the alternate lienor that
filed the notice with the officer of the alternate lienor's intent to redeem and that
has the highest priority in the sold property may redeem the property by paying, in
the form specified in section 38-37-108, to the officer, no later than 12 noon on the
last day of the alternate lienor's redemption period, the amount for which the
property was sold with interest from the date of sale, together with all sums
allowed under section 38-38-107 and, if applicable, the redemption amount paid by
the immediately prior redeeming lienor, with interest at the rate specified in this
subsection (4)(a), plus the amount claimed in the statement delivered by the
immediately prior redeeming lienor pursuant to subsection (6) of this section,
including the per diem amounts through the date when the payment is made, or if
no prior lienor has redeemed, the redemption amount determined pursuant to
subsection (4)(a)(I) of this section.
(C) If the highest priority alternate lienor has not redeemed the property,
each subsequent alternate lienor that is entitled to redeem, in succession based on
the priority of the alternate lienor, has an additional five business days to redeem
the property. The priority of the alternate lienors is set forth in section 38-38-305.5
(1)(a). The alternate lienor must redeem by paying the redemption amount
determined pursuant to subsection (4)(a)(II)(B) of this section within the five-day
period, or, if no prior lienor has redeemed, the redemption amount determined
pursuant to subsection (4)(a)(I) of this section, to the officer on or before 12 noon of
the last day of the alternate lienor's redemption period.
(b) (I) Each subsequent lienor entitled to redeem shall, in succession, have an
additional period of five business days to redeem. The right to redeem shall be in
priority of such liens according to the records. The redeeming lienor shall redeem
by paying to the officer, on or before 12 noon of the last day of the lienor's
redemption period:
(A) The redemption amount paid by the prior redeeming lienor, with interest
at the rate specified in paragraph (a) of this subsection (4), plus the amount claimed
in the statement delivered by the immediately prior redeeming lienor pursuant to
subsection (6) of this section, including the per diem amounts through the date on
which the payment is made; or
(B) If no prior lienor has redeemed, the redemption amount determined
pursuant to paragraph (a) of this subsection (4).
(II) If the redeeming lienor is the same person as the holder of the certificate
of purchase or the prior redeeming lienor as evidenced by the instruments referred
to in subsection (1) of this section, regardless of the number of consecutive liens
held by the redeeming lienor, the redeeming lienor shall not pay to the officer the
redemption amount indicated in the certificate of purchase or certificate of
redemption held by such person, but shall only pay to the officer the unpaid fees
and costs required by the redemption and provide the statement described in
paragraph (f) of subsection (1) of this section.
(c) If the statement described in paragraph (f) of subsection (1) of this
section so states, or upon other written authorization from the holder of the
certificate of purchase or the then-current holder of the certificate of redemption
or the attorney for either such holder, the officer may accept as a full redemption
an amount less than the amount specified in paragraph (a) of subsection (3) of this
section. Notwithstanding the first sentence of this paragraph (c), the amount bid at
sale shall determine the amount and extent of any deficiency remaining on the debt
represented by the evidence of debt that is the subject of the foreclosure as stated
in the bid pursuant to section 38-38-106 (2). Any redemption under this section
shall constitute a full redemption and shall be deemed to be payment of all sums to
which the holder of the certificate of purchase is entitled.
(d) On the ninth business day after the date of sale, the officer shall set the
dates of the redemption period of each lienor in accordance with this subsection (4).
The redemption period of a lienor shall not be shortened or altered by the fact that
a prior lienor redeemed before the expiration of his or her redemption period.
(5) Certificate of redemption. Upon receipt of the redemption payment
pursuant to subsection (4) of this section, the officer shall execute and record a
certificate of redemption pursuant to section 38-38-402. Upon the expiration of
each redemption period under this section, the officer shall disburse all redemption
proceeds to the persons entitled to receive them.
(6) Certificate of lienor. A redeeming lienor shall pay to the officer the
amount required to redeem and shall deliver to the officer a signed and properly
acknowledged statement by the lienor or a signed statement by the lienor's
attorney showing the amount owing on such lien, including per diem interest and
fees and costs actually incurred that are permitted by subsection (7) of this section
and for which the lienor has submitted to the officer receipts, invoices, evidence of
electronic account-to-account transfers, or copies of loan servicing computer
screens evidencing the fees and costs and verifying that the fees and costs were
actually incurred as of the date of the statement of redemption with the per diem
amounts that accrue thereafter. At any time before the expiration of a redeeming
lienor's redemption period, the redeeming lienor may submit a revised or corrected
certificate, or the attorney for the lienor may submit a revised or corrected
statement.
(7) Payment of fees and costs. A redeeming lienor may, during such lienor's
redemption period described in subsection (4) of this section, pay the fees and
costs that the holder of the evidence of debt may pay pursuant to section 38-38-107.
(8) Misstatement of redemption amount. If an aggrieved person contests
the amount set forth in the statement filed by a redeeming lienor pursuant to
paragraph (f) of subsection (1) of this section or by a holder of a certificate of
purchase pursuant to paragraph (a) of subsection (3) of this section and a court
determines that the redeeming lienor or holder of the certificate of purchase has
made a material misstatement on the statement with respect to the amount due
and owing to the redeeming lienor or the holder of the certificate of purchase, the
court shall, in addition to other relief, award to the aggrieved person the aggrieved
person's court costs and reasonable attorney fees and costs.
(9) No partial redemption. A lienor holding a lien on less than all of, or a
partial interest in, the property sold at sale shall redeem the entire property. No
partial redemption shall be permitted under this part 3. The priority of liens for
purposes of this section shall be determined without consideration of the fact that
the lien relates to only a portion of the property or to a partial interest therein.
(10) Federal redemption rights. Any redemption rights granted under
federal law are separate and distinct from the redemption rights granted under this
part 3. All liens that are junior to the deed of trust or other lien being foreclosed
pursuant to this article shall be divested by the sale under this article, subject to
the redemption rights provided in this part 3. The officer conducting a foreclosure
under this article is not designated to receive redemptions under federal law.
(11) As used in this section, unit association lien means a lien in a unit in a
common interest community that is held by an association, as defined in section 38-33.3-103 (3).
Colorado § 38-38-302 (Redemption by lienor - procedure - definition) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.