NOTICE TO AN OWNER IN FORECLOSURE:If a property goes to foreclosure auction sale and is purchased for more than the total owed to the lender and to all other lien holders, the original grantor on the foreclosed deed of trust may have overbid funds due to them.
Foreclosure Overbid Funds
Overbid proceeds are first applied to any deficiency as indicated on the holder's bid. Upon the expiration of each redemption period, any remaining overbid is paid to junior lienors who have duly filed a notice of Intent to Redeem up to the unpaid amount of such lien. Any remaining overbid funds are due to the original grantor on the foreclosed deed of trust. The Public Trustee will publish a notice of overbid funds in a local newspaper.
If You Believe You May Be Entitled to Overbid Funds,please call the Arapahoe County Public Trustee at 303-730-0071. There is no charge to grantors for this service.
You may view the posted excess funds for a property by downloading the overbid list.
The Public Trustee holds any unclaimed funds in escrow for six months from the date of sale, at which time they are transferred to the State Treasurer as part of the Unclaimed Property Act program known as the "Great Colorado Payback."
Finder’s FeeIt is now illegal to charge a finder’s fee to help a homeowner recover overbid funds until at least 2-1/2 years after the foreclosure sale.
After the 2-1/2 year period, Colorado law now limits the premium, sometimes known as a "finder's fee," that a person may charge for offering assistance in recovering overbid funds. The finder's fee is capped at 20% of the amount recovered between 2-1/2 to 3 years after the sale, and at 30% for amounts that have been in the custody of the State Treasurer for 3 years or more,
Additional requirements are imposed on the finder's contract, including the requirements that the contract:
- Is signed by the person to whom the amounts are due
- Contains a description of the property and the date of the foreclosure sale
- Discloses that the Public Trustee is obligated to disburse the funds whether or not a finder is used (if the funds are still held in escrow by the Public Trustee's office. Otherwise they will go through the Great Colorado Payback Program with the State Treasurer)
- Describes the nature of the services that the finder will perform.