Foreclosure Information
When a lender forecloses on a property, the foreclosure is not considered a
sale for property valuation purposes.
When a lender sells a foreclosure property, which is called an REO
(“Real Estate Owned”), it is considered as a market sale for valuation
purposes. Under a provision of the Colorado Constitution, these sales are
considered comparable market sales and cannot be excluded unless they are
not “arm’s-length” transactions.
Arm’s Length: Sales between buyers and
sellers acting independently of one another and who are not related in some
manner. Related parties may be related by blood or marriage or they can be
related through business relationships, such as partnerships, corporations,
or other agency agreements. Related parties can include officers of a
corporation who transact business with the corporation or its subsidiaries.
When foreclosure sales are verified, it is important that the condition of
the property at the time of sale be noted. Many purchasers of
foreclosure properties make improvements and repairs after purchase so the
condition of the property at the time of sale must be documented. The
Department of Property Taxation notes that unless an inspection is made or
minimal expenditures can be easily confirmed, the subsequent resale of that
property should not be used.
Deeds in Lieu of Foreclosure are not considered sales for valuation
purposes, as they are deeds to the lender in lieu of formal foreclosure
proceedings.
If you are seeking information about foreclosures in Teller County, please
contact the Public Trustee in
the Treasurer’s Office. To
access online information about foreclosures, please
click here