C.R.S. Section 38-38-506
Omitted parties

  • definitions


As used in this section, “omitted party” means any person who:


Prior to the recording of the notice of election and demand or lis pendens, has either acquired a record interest in the property or has obtained a valid possessory interest and is in actual possession of the property, which interest is junior to the deed of trust or other lien being foreclosed and would otherwise be extinguished by the foreclosure; and


Is not included as a party defendant in a judicial foreclosure action or, if included, is not served with process, or is not served with notice of levy or seizure pursuant to section 13-55-102, C.R.S., or is not notified pursuant to section 38-38-103 of a sale, or is not notified in connection with the legal proceedings contemplated by section 38-38-105.


Intentionally left blank —Ed.


The interest of an omitted party in the property that is the subject of a sale may be terminated if the omitted party, or anyone claiming by, through, or under an omitted party, in a civil action commenced at any time by any interested person as defined in paragraph (c) of this subsection (2), by an omitted party, or by anyone claiming by, through, or under an omitted party, is afforded rights of cure if the omitted party would have been entitled to cure pursuant to section 38-38-104, or is afforded redemption rights if the omitted party would have been entitled to redeem pursuant to section 38-38-302, upon such terms as the court may deem equitable under the circumstances, which terms shall not, however, be more favorable than the person’s statutory rights. The court shall give full consideration to whether the omitted party or anyone claiming by, through, or under an omitted party was given or had actual notice or knowledge of the foreclosure and was given an opportunity to exercise statutory rights to cure or redeem.


For purposes of this section, the lien that is the subject of the sale shall not be extinguished by merger with the title to the property acquired pursuant to section 38-38-501 until the interest of any omitted party has been affirmed pursuant to subsection (3) of this section or has been terminated as provided in paragraph (a) of this subsection (2), or by operation of law. The omitted party, or anyone claiming by, through, or under an omitted party, cannot extinguish the lien that is subject to the sale by enforcement of the lien of the omitted party.


As used in this section, “interested person” means the holder of the evidence of debt being foreclosed, a holder of a certificate of purchase or certificate of redemption issued pursuant to section 38-38-401 or 38-38-402, or an owner of the property pursuant to section 38-38-501 or a person claiming by, through, or under such holder or owner.


An omitted party, or anyone claiming by, through, or under an omitted party, shall not have a remedy to cure or redeem, except as set forth in this subsection (2). An interested party shall not be able to extinguish an omitted party’s interest except as set forth in this subsection (2) or by written waiver or agreement signed by the omitted party or anyone claiming by, through, or under an omitted party.


If an interested person files with the officer at any time a document affirming an omitted party’s interest in the property, subject to the terms, conditions, and provisions of the recorded instrument from which such omitted party’s interest is derived, or in the case of an omitted party that is a lessee, subject to the terms and conditions of the lease, whether written or oral, the interest of such omitted party in the property shall not be affected by the foreclosure, and such omitted party shall have no right to cure or redeem.
(4)(Deleted by amendment, L. 2006, p. 1476, § 31; L. 2007, p. 1849, § 27, effective January 1, 2008.)

Source: Section 38-38-506 — Omitted parties - definitions, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-38.­pdf (accessed Oct. 20, 2023).

Holder of evidence of debt may elect to foreclose
Recording notice of election and demand - record of sale
Notice prior to residential foreclosure - hotline
Combined notice - publication - providing information
Single point of contact - servicer to designate - duties - exemption
Dual tracking prohibited - notice to officer - continuation of sale pending inquiry
Right to cure when default is nonpayment - right to cure for certain technical defaults
Court order authorizing sale mandatory - notice of hearing for residential properties - definition
Bid required - form of bid
Fees and costs - definitions
Date of sale
Continuance of sale - effect of bankruptcy - withdrawal of sale
Sales by officer - location - announcement - records - electronic devices - definitions
Treatment of an overbid - agreements to assist in recovery of overbid prohibited - penalty - definition
Use of electronic documents authorized
Rescission of public trustee sale
Unclaimed refunds - disposition under “Revised Uniform Unclaimed Property Act”
Foreclosure of installments without acceleration
Holder of certificate of purchase paying charges - redemption
Redemption by lienor - procedure
Effect of redemption
Lessee, easement holder, and installment land contract vendor considered as lienors - installment land contract vendee considered as an owner
Rights of other lienors to redeem - definition
Certificate of purchase - issuance
Certificate - priority of lien
Certificate of redemption - issuance
Certificates assignable
Certificate as prima facie evidence
Title vests upon expiration of redemption periods - confirmation deed
Form of confirmation deed for public trustee’s sale
Form of confirmation deed for sheriff’s sale
Deed evidence of compliance
Effect of foreclosures as to certain classes of persons
Omitted parties - definitions
Receiver appointed upon application
Appointment of receiver to prevent waste
Application - use of term “foreclosure”
Limitation of officer’s liability
No waiver of or agreement to shorten right to cure
Providing information to homeowner and public
Curative provisions
Green check means up to date. Up to date

Current through Fall 2024

§ 38-38-506’s source at colorado​.gov