2023 Colorado Revised Statutes › Title 38 - PROPERTY - REAL AND PERSONAL (§§ 38-1-101 — 38-53-110) › REAL PROPERTY (§§ 38-30-101 — 38-46-104) › MORTGAGES AND TRUST DEEDS (§§ 38-37-100.5 — 38-40-106) › Article 38 - FORECLOSURE SALES (§§ 38-38-100.3 — 38-38-901) › Part 3 - REDEMPTION (§§ 38-38-301 — 38-38-306) › Section 38-38-302 - [Effective 8/7/2024] Redemption by lienor - procedure

(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 subsection (4)(a) of this section, 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 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).
Amended by 2024 Ch. 422,§ 6, eff. 8/7/2024, app. to debts accrued on or after 8/7/2024.
Amended by 2018 Ch. 138, § 8, eff. 8/8/2018.
L. 90: Entire article R&RE, p. 1664, § 2, effective October 1. L. 98: (4) amended, p. 221, § 1, effective August 5. L. 2002: (1), IP(4)(b)(I), and (4)(d) amended and (1.5), (1.6), and (4.5) added, p. 1343, § 13, effective July 1. L. 2006: Entire section R&RE, p. 1467, § 21, effective 1/1/2008. L. 2007: IP(1)(d), (1)(e), (3), (4)(a), (4)(c), and (4)(d) amended, p. 1841, § 17, effective 1/1/2008. L. 2009: IP(1), (1)(c), (1)(d)(III), (1)(d)(IV), (1)(f), (3)(a), (6), and (8) amended, (HB 09 -1207), ch. 164, p. 717, § 14, effective 1/1/2010. L. 2012: (1)(e) amended, (SB 12-030), ch. 96, p. 324, § 11, effective September 1. L. 2018: (3)(a) amended, (HB 18-1254), ch. 138, p. 910, § 8, effective August 8.
(1) This section is similar to former § 38-39-102, as it existed prior to 1990.
(2) The effective date for amendments made to this section by chapter 305, Session Laws of Colorado 2006, was changed from July 1, 2007, to January 1, 2008, by section 27 of chapter 404, Session Laws of Colorado 2007. (See L. 2007, p. 1849.)
2024 Ch. 422, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.