Detailed Answer
When a nonjudicial foreclosure sale in Colorado generates proceeds that exceed the total lien balance, accrued interest, fees, and sale costs, the leftover money is called “surplus funds.” Interested parties—typically former homeowners or junior lienholders—can follow these steps to see if any surplus remains:
- Identify the County Public Trustee’s Office. Colorado’s nonjudicial foreclosures run through the public trustee in the county where the property sits. Visit the public trustee’s website or office to view foreclosure sale results.
- Review the Sale Report. Most public trustee offices publish monthly or quarterly foreclosure sale reports, often including a column for surplus amounts. Look up the sale date and property address to see if a surplus was recorded.
- Contact the Public Trustee Directly. If the online report isn’t clear, call or visit the public trustee’s office. Provide the foreclosure sale date, property address, and the trust deed or loan number. The trustee will confirm whether surplus funds remain.
- Verify the Claim Period. Under Colorado Revised Statutes Section 38-38-104 (C.R.S. 38-38-104), surplus funds stay with the public trustee for up to six years. After that, unclaimed surplus reverts to the county treasury.
- Submit a Written Claim. If a surplus exists, file a formal claim with the county public trustee. Include proof of identity, documentation of your interest (e.g., payoff statement, junior lien instrument), and a notarized affidavit. The public trustee will review and distribute funds if your claim is valid.
- Resolve Contested Claims. If multiple parties claim the same surplus, the public trustee may require a court hearing. Be ready to provide evidence of priority—senior liens get paid before junior liens and the former owner.
This process ensures transparency and gives all entitled parties a fair chance to recover remaining funds after a foreclosure.
Helpful Hints
- Bookmark your county public trustee’s foreclosure sale page for easy updates.
- Gather loan numbers, trust deed recordings, and payoff statements before you call.
- Note that former homeowners and junior lienholders share equal access to surplus funds, but senior liens take priority.
- File your claim promptly—miss the six-year deadline, and the money goes to the county treasury.
- Consider consulting a Colorado attorney if multiple claimants contest the surplus.