Rescission of public trustee sale.

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(1) If the successful bidder at a foreclosure sale is the holder of the evidence of debt foreclosing the deed of trust or other lien, then such successful bidder, the bidder's attorney, the assignee of the successful bidder pursuant to section 38-38-403, or the assignee's attorney may rescind the sale without obtaining a court order by filing with the public trustee no later than eight business days after the date of the sale a notice of rescission of sale stating that the sale is being rescinded, the number and date of the sale, the name of the person to whom the certificate of purchase was issued, the name of the assignee, if any, the recording date and reception number or book and page number for the recorded certificate of purchase, and the legal description of the property foreclosed. The notice shall be signed and properly acknowledged by the successful bidder or assignee, or signed by the bidder or assignee's attorney. Upon receipt of the notice of rescission of sale, any assignment of the certificate of purchase, the public trustee's fee for the rescission specified in section 38-37104, and the costs of recording the notice of rescission of the sale, the public trustee shall record the notice of rescission of sale in the county records.

  1. Upon recording of the notice of rescission of sale by the public trustee, the certificateof purchase shall be deemed canceled as if the sale had not occurred, and the evidence of debt and deed of trust shall be deemed fully reinstated with the same lien priority as if the sale had not occurred. The public trustee shall confirm the reinstatement by indorsement on the evidence of debt and deed of trust or copy thereof submitted pursuant to section 38-38-101.

  2. Within ten calendar days after receipt of all documents and fees and costs specifiedin subsection (1) of this section, the public trustee shall mail a copy of the notice of rescission of sale to each person who was entitled to receive the combined notice pursuant to section 38-38-103.

  3. (a) After the recording of the notice of rescission of sale, the holder of the evidence of debt or the holder's assignee, or the attorney for the holder or the assignee, may notify the public trustee in writing to reschedule the sale. The public trustee shall set a new date of sale at least thirty calendar days but not more than forty-five calendar days after the date on which the public trustee receives notice to schedule a new date of sale, subject to the requirements of section 38-38-109 (2).

  1. No later than ten calendar days after receiving notice to schedule a new date of sale,the public trustee shall mail a combined notice setting forth the rescheduled date of sale to each person who was entitled to receive the combined notice pursuant to section 38-38-103.

  2. No later than twenty calendar days after receiving notice to schedule a new date ofsale, but no less than ten calendar days prior to the new date of sale, the public trustee shall publish the sale one time only.

  3. All fees and costs of the public trustee for actions performed under this section andthe cost of recording the notice of rescission of sale shall be part of the foreclosure costs.

  4. After a sale has been rescinded and rescheduled pursuant to this subsection (4), thesale may be continued in accordance with section 38-38-109 (1)(a).

  5. If a written request to reschedule the sale is not received by the public trustee withinone year of the recording of the notice of rescission, the foreclosure must be withdrawn according to section 38-38-109 (3)(b).

  1. Nothing in this section shall prevent any person from seeking a rescission of a salethrough a court of competent jurisdiction.

  2. Claims for damages by any person arising out of a rescission of a sale pursuant tothis section shall be limited to the reasonable actual expenses of the person and shall not include any speculative or expectation damages, awards, or claims of any kind, whether legal or equitable.

  3. The indorsement of the public trustee pursuant to subsection (2) of this section shallbe in substantially the following form:

The undersigned, as Public Trustee for the county of _______________, state of Colorado, by this indorsement, hereby confirms the reinstatement of this (evidence of debt) (deed of trust) (lien) in accordance with the requirements of section 38-38-113, Colorado Revised Statutes.

Date:

Signature:

Public Trustee For the county of ,

State of Colorado.

Source: L. 2007: Entire section added, p. 1839, § 16, effective January 1, 2008. L. 2009: (1) amended, (HB 09-1207), ch. 164, p. 717, § 13, effective September 1. L. 2018: (3) amended and (4)(f) added, (HB 18-1254), ch. 138, p. 910, § 7, effective August 8.


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