Right to the remaining overbid after a public-trustee sale
Colo. Rev. Stat. § 38-38-111(2)
In plain words
If a Colorado foreclosure sale brings in more than the debt (an “overbid”), the public trustee holds it until redemption periods end. Junior lienholders who file on time are paid first, and then any remaining overbid must be paid to the borrower. Contact the public trustee to claim it.
Who is protected
Borrowers whose Colorado property sold at a foreclosure sale for more than the debt.
When it applies
- Only in Colorado.
- Only after the foreclosure sale.
What you can do
Ask in writing
Write to the county public trustee to claim the overbid and keep your address current.
Deadline: After the redemption periods end; unclaimed overbid is later presumed abandoned
Open the tool
Honest limits
- Colorado limits agreements to pay someone to recover your overbid; you can claim it yourself.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawTreatment of an overbid
Colo. Rev. Stat. § 38-38-111(2)
Exact part: (2)
What it says: After junior lienors are paid, any remaining overbid is paid to the borrower.
Read the official texthttps://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-38.pdf
Court cases
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
Sale no sooner than 110 days after the notice of election and demand
Colo. Rev. Stat. § 38-38-108(1)(a)
A Colorado public-trustee sale must be set no less than 110 and no more than 125 calendar days after the notice of election and demand is recorded (longer for farmland). The public trustee mails and publishes a combined notice that tells you about your rights, including the right to cure.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightRenters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this rightRight to the remaining overbid after a treasurer’s public auction
Colo. Rev. Stat. § 39-11.5-109
Since 2024 (after Tyler v. Hennepin County), Colorado requires a public auction before a tax-lien holder can take your property, and the extra money (overbid) is paid out. After junior lienholders are paid, any remaining overbid must be paid to the property owner. The treasurer must mail you a notice about it within 30 days after the auction.
Read this right