Trustee sale - how final are they?

Question

I've been watching for a townhouse to go in trustee sale. It gets postponed every week. I know the owners have filed bankruptcy. I stopped by yesterday to ask if they are going to list their house for sale (not even sure if they legally can at this point). They said "no". Since I didn't know how to continue conversation at that point I asked them "Now it'll go to foreclosure then?", he said "no".

What are the steps at this point that can be taken by them or me to facilitate sale (they didn't sound that they will move)

Irina Gav · Answer

I own one unit in this complex and attend HOA meetings and know they haven't paid HOA dues for over 2 years.  There is a lien on the property from HOA. If it goes to trustee sale and gets sold will second lien be wiped out? I wish owners would cooperate. Can I contact their attorney to see if they will consider sale?

Jon Holdman · Answer

No owner's redemption in CO anymore.  Used to be, but they changed the timelines pre-auction, and eliminated the owner's redemption period.  Junior lienholders can redeem, but much do it very quickly. Elevan business days, IIRC.

If you mean they don't want to move out, then there's no deal.  You would need to do a short sale (I assume, perhaps not.)  That requires their cooperation and assistance.  And they will have to move along.

If you have the cash, you can go to the auction.  Most trustees (that's a county official here in CO, but I assume you know that) have a web page where you can look each week and see what's happening.  Specific properties do often get continued.  But if the borrower doesn't work something out, it will get sold, eventually.  Auctions here are cash on the barrelhead.  Exact procedures vary from county to county, so I recommend attending an auction ahead of time to see how it works.

If you do buy at the auction and they're still there, you may have to evict to get them out.

Wayne Brooks · Answer

I don't know what the redemption period is, if any, in Co.  But bankruptcy won't stop it, only delay it.  Once the bankruptcy court releases it, it can go to trustee sale.