Colorado uses the public trustee foreclosure process, which means:
Why A county-appointed public trustee conducts foreclosures on deeds of trust non-judicially Is Correct
Answer B: A county-appointed public trustee conducts foreclosures on deeds of trust non-judicially
In Colorado, when a holder of a debt secured by a deed of trust declares a default and elects to foreclose, the holder or its attorney files a notice of election and demand and the original evidence of debt with the public trustee of the county where the property is located. The public trustee then publishes and conducts the sale. This is a non-judicial process run through the county public trustee.
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
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Key Terms to Know
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
EasementA non-possessory right to use another person's land for a specific purpose.
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