Chapter 24 - § 24.11 • OMITTED PARTIES

• Jurisdiction: Colorado

§ 24.11 • OMITTED PARTIES

§ 24.11.1—Definitions

Omitted party: An "omitted party" is any person who (1) 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 (2) is not included as a party defendant in a judicial foreclosure or, if included, is not served with process, or is not served with notice of levy or seizure,⁵³⁸ or is not notified of a public trustee's sale or a sheriff's sale, or is not notified in connection with Rule 120 proceedings.⁵³⁹

Interested person: An "interested person" is the holder of the evidence of debt being foreclosed, a holder of a certificate of purchase or certificate of redemption, or an owner of the property pursuant to the vesting provisions of C.R.S. § 38-38-501, or a person claiming by, through, or under such holder or owner.⁵⁴⁰

§ 24.11.2—Termination or Affirmation of Interest of Omitted Party

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 an interested person, 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, or is afforded redemption rights if the omitted party would have been entitled to redeem, upon such terms as the court may deem equitable under the circumstances. The terms may not, however, be more favorable than the person's statutory rights. The court must give full consideration to whether the omitted party, or anyone claiming by, through, or under the omitted party, was given or had actual notice or knowledge of the foreclosure and was given an opportunity to exercise the statutory rights to cure or redeem.⁵⁴¹

If an interested person files with the officer at any time a document affirming the 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 the omitted party in the...