NOTICE OF DEFAULT AND FORECLOSURE SALE
WHEREAS, on November 8, 2010, a certain Deed of Trust was executed by Donald R. Schlotfelt and Shirlie A. Schlotfelt, as Grantors, in favor of Cherry Creek Mortgage Co., Inc., as Beneficiary, and the Public Trustee of Montezuma County, Colorado as Trustee, and was recorded on November 15, 2010, at Reception Number 573863, in the office of the Clerk and Recorder of the County of Montezuma, Colorado; and
WHEREAS, the Deed of Trust was insured by the United States Secretary of Housing and Urban Development (the Secretary) pursuant to the National Housing Act for the purpose of providing single family housing; and
WHEREAS, the beneficial interest of the Deed of Trust is now owned by the Secretary, pursuant to an assignment recorded on November 14, 2016 at Reception Number 608311 in the office of the Clerk and Recorder of the County of Montezuma Colorado.
WHEREAS, a default has been made in the covenants and conditions of the Deed of Trust in that Paragraph 9 (a) (i) has been violated; and
WHEREAS, the entire amount delinquent is $328,496.63 as of October 14, 2020; and
WHEREAS, by virtue of this default, the Secretary has declared the entire amount of the indebtedness secured by the Deed of Trust to be immediately due and payable;
NOW THEREFORE, pursuant to the powers vested in me by the Single Family Mortgage Foreclosure Act of 1994, 12 U.S.C. 3751 et seq., by 24 CFR part 27, subpart B, and by the Secretarys designation of me as Foreclosure Commissioner, recorded on August 16, 2018 at Reception No. 618741 in the records of the Montezuma County Clerk and Recorder, notice is hereby given that on December 7, 2020 at 2:00 p.m. local time, all real and personal property at or used in connection with the following described premises (Property) will be sold at public auction to the highest bidder:
LOT 18, BLOCK 7, VERDE VU SUBDIVISION, A PART OF THE HARTMAN ADDITION TO THE CITY OF CORTEZ, ACCORDING TO THE 11TH PARTIAL AMENDED PLAT OF RECORD IN THE OFFICE OF THE CLERK AND RECORDER, COUNTY OF MONTEZUMA, STATE OF COLORADO.
Commonly known as: 628 Colfax Avenue, Cortez, CO 81321.
The sale will be held at: 628 Colfax Avenue, Cortez, CO 81321.
The Secretary of Housing and Urban Development will bid the lesser amount of the loan balance or the appraised value obtained by the Secretary prior to sale.
There will be no proration of taxes, rents or other income or liabilities, except that the purchaser will pay, at or before closing, his prorated share of any real estate taxes that have been paid by the Secretary to the date of the foreclosure sale.
When making their bids, all bidders except the Secretary must submit a deposit totaling 10% of the Secretarys bid in the form of a certified check or cashiers check made out to the Secretary of HUD. A deposit need not be accompany each oral bid. If the successful bid is oral, a deposit of 10% of the Secretarys bid must be presented before the bidding is closed. The deposit is nonrefundable. The remainder of the purchase price must be delivered within 30 days of the sale or at such other time as the Secretary may determine for good cause shown, time being of the essence. This amount, like the bid deposits, must be delivered in the form of a certified or cashiers check. If the Secretary is the highest bidder, he need not pay the bid amount in cash. The successful bidder will pay all conveying fees, all real estate and other taxes that are due on or after the delivery date of the remainder of the payment and all other costs associated with the transfer of title. At the conclusion of the sale, the deposits of the unsuccessful bidders will be returned to them.
The Secretary may grant an extension of time within which to deliver the remainder of the payment. All extension will be for 15-day increments for a fee of $500.00, paid in advance. The extension fee shall be in the form of certified or cashiers check made payable to the Secretary of HUD. If the high bidder closes the sale prior to the expiration of any extension period, the unused portion of the extension fee shall be applied toward the amount due.
If the high bidder is unable to close the sale within the required period, or within any extensions of time granted by the Secretary, the high bidder may be required to forfeit the cash deposit, or at the election of the foreclosure commissioner after consultation with the HUD representative, will be liable to HUD for any costs incurred as a result of such failure. The Commissioner may, at the direction of the HUD representative, offer the property to the second highest bidder for an amount equal to the highest price offered by that bidder.
There is no right of redemption, or right of possession based upon a right of redemption, in the mortgagor or others subsequent to a foreclosure completed pursuant to the Act. Therefore, the Foreclosure Commissioner will issue a Deed to the purchaser(s) upon receipt of the entire purchase price in accordance with the terms of the sale as provided herein, HUD does not guarantee that the property will be vacant.
The scheduled foreclosure sale shall be cancelled or adjourned if it is established, by documented written application of the mortgagor to the Foreclosure Commissioner no less than three (3) days before the date of sale, or otherwise, that the default or defaults upon which the foreclosure is based did not exist at the time of service of this notice of default and foreclosure sale, or all amounts due under the mortgage agreement are tendered to the Foreclosure Commissioner, in the form of a certified cashiers check payable to the Secretary of HUD, before the public auction of the property is completed.
The amount that must be paid if the mortgage is to be reinstated prior to the scheduled sale is $328,496.63 as of October 14, 2020, plus all other amounts that would be due under the mortgage agreement if payments under the deed of trust had not been accelerated, advertising costs and postage expenses incurred in giving notice, mileage by the most reasonable road distance for posting notices and for the Foreclosure Commissioners attendance at the sale, reasonable and customary costs incurred for title and lien record searches, the necessary out of pocket costs incurred by the Foreclosure Commissioner, and all other costs incurred in connection with the foreclosure prior to reinstatement.
Tender of payment by certified or cashiers check or application for cancellation of the foreclosure sale shall be submitted to the address of the Foreclosure Commissioner provided below.
Dated: November 3, 2020
Deanne R. Stodden
1430 Wynkoop Street,
Denver, CO 80202
Telephone: (303) 623-1800
Published in The Journal November 18 and 25 and December 2, 2020.