Chapter 6 - § 6.6 SALE OF PROPERTY

• Jurisdiction: Colorado

§ 6.6 SALE OF PROPERTY

If no party cures the default, the property will go to sale. The foreclosing lien claimant must file a bid with the sheriff by noon on the second business day before the sale date.¹⁹ If the bid is not received by the deadline, the officer shall continue the sale for one week and shall announce or post a notice of the continuance at the time and place designated for the sale.²⁰ There is a sample bid form set forth in C.R.S. § 38-38-106(2). A written bid can be amended or withdrawn in writing prior to noon on the day prior to sale, or orally at the sale, in which case the changes must be made and initialed on the written bid.²¹

In the case of mechanics' lien foreclosures, the probability of having multiple lien claimants with the same priority is high. Thus, the lien claimants should discuss the possibility of a consolidated bid as opposed to submitting multiple bids. The order, judgment and decree of foreclosure should be drafted to allow for this consolidation if the lien claimants so choose.

Further, the lien claimants should understand and prepare for the eventuality that they may be the winning bidder. As such, the lien claimants should discuss ownership possibilities of the foreclosed-upon property. One common scenario is where the lien claimants submit a consolidated bid and end up owning the property as tenants in common in proportional shares. There are obvious pitfalls with this arrangement, which become larger with more parties involved. The lien claimants for all intents and purposes become business partners in a real estate venture. Consolidating the bids can make the process more efficient, but there are many legal and practical hurdles, including possible tax ramifications, that must be discussed and overcome.

Unless the sale has been continued, the sale will occur at the time and place of the combined notice. The sheriff will conduct the sale by either reading out loud the combined notice or providing written...