Bank-owned luxury, done right
Luxury foreclosures in Colorado.
Bank-owned estates, Public Trustee sales and pre-foreclosure homes above $1 million, sold as-is.
A live person answers. Not a robot, not a phone tree.
Three ways in
How do you buy a luxury foreclosure in Colorado?
A luxury foreclosure comes three ways: before the sale (pre-foreclosure or short sale), at the county Public Trustee sale, or after it as a bank-owned home. Each one sells as-is, so the inspection and title work decide the deal.
Pre-foreclosure.
The owner still holds title. A short sale needs the lender's written approval.
Public Trustee.
The county auction. Certified funds, no inspection, no contingencies.
Bank-owned (REO).
The lender lists it with an agent. You make an offer with inspection and financing.
Sold as-is.
The seller makes no repairs. Price the repairs before you offer.
What should I check on a luxury foreclosure?
- Title. Order a title commitment. Look for second liens, HOA liens and judgments that survive the sale.
- Winterization. Vacant homes get winterized. Ask for de-winterization and a pressure test before inspection.
- Systems. Inspect the roof, HVAC, sewer line, pool and any smart-home equipment. Vacant homes hide water damage.
- Occupancy. At a Public Trustee sale you inherit any occupant. A bank-owned home comes vacant.
How do I buy one?
- Get approved first. Banks ask for proof of funds or a jumbo pre-approval with every offer.
- Watch the listings. Bank-owned homes list on the MLS. Set a saved search on kennarealestate.com.
- Offer on the bank's form. Banks add their own addendum. Read the deadlines and the as-is clauses.
- Close on time. Banks charge per-day penalties for late closings.
The Public Trustee clock
How long does a Colorado foreclosure take?
Most Colorado foreclosures run through the county Public Trustee, not a courtroom trial. The lender records a Notice of Election and Demand, a Rule 120 court hearing authorizes the sale, and the sale is set 110 to 125 days after the notice is recorded for most homes. Sales are postponed all the time, so the real date moves.
Until shortly before the sale, the owner can still cure the default, sell the home, or close a short sale with the lender's approval. That window is where most luxury pre-foreclosure deals happen.
- Cure. The owner can file a notice of intent to cure at least 15 days before the sale and pay what is past due. Then the foreclosure stops.
- The sale. The Public Trustee auctions the home. Bids are paid in certified funds the same day. Most of the time the lender's own credit bid wins.
- After the sale. The winning bidder gets a certificate of purchase. Junior lienholders have a short window to redeem; then the Public Trustee issues a confirmation deed.
- Bank-owned. When the lender takes the home back, it becomes an REO listing on the MLS, delivered vacant in most sales, with normal inspection and financing.
Auction or bank-owned?
Public Trustee sale vs bank-owned home: what changes.
| Public Trustee sale | Bank-owned (REO) | |
|---|---|---|
| Payment | Certified funds, same day | Cash or a jumbo or conventional loan |
| Inspection | None inside the home | Normal inspection period |
| Title | Certificate of purchase, then confirmation deed; check for surviving liens | Title insurance at closing |
| Occupancy | You may inherit an occupant | Delivered vacant in most sales |
| Contract | No contract; the auction terms apply | The bank's addendum on top of the Colorado contract |
| Price | Opening bid set by the lender | List price; banks counter in writing, and slowly |
Most luxury buyers buy bank-owned or pre-foreclosure. The auction suits cash buyers who can price a home they cannot walk through.
Who you're working with
Why buyers and banks call us on distressed luxury homes.
- Since 2003. Brian Lee Burke has been licensed in Colorado since 2003 and has listed and sold bank-owned homes and written broker price opinions for lenders and asset managers through more than one housing cycle.
- Both sides of the table. We list REO homes for banks and represent buyers on them, so we know which terms banks bend on and which they never do.
- Short sale desk. Our short sale negotiator works the lender files every week. See luxury short sales.
- Jumbo-ready. We line up proof of funds or a jumbo pre-approval before the offer, because banks ask for it with every offer.
Homes for sale now
See foreclosures for sale now.
Bank-owned and HUD homes, updated every day.
Quick answers
Questions about foreclosures.
How do foreclosures work in Colorado?
Most run through the county Public Trustee. The lender records a Notice of Election and Demand, a Rule 120 hearing authorizes the sale, and the auction is set 110 to 125 days later for most homes. If no outside bidder wins, the lender takes the home back and sells it later as a bank-owned (REO) home.
Can I finance a bank-owned luxury home?
Yes, with a jumbo or conventional loan once the bank accepts your offer. Public Trustee sales require certified funds. Mike Oswald at Rate writes jumbo loans: (720) 677-5816. You may use any lender.
Can I inspect a home before the Public Trustee sale?
No. The home is sold as-is and you cannot go inside without the owner's permission. Price the risk, check the title, and drive the property.
Do liens survive a Colorado foreclosure sale?
Liens senior to the foreclosing loan, and some taxes and HOA amounts, can survive. Order a title search before you bid.
Are HUD homes the same thing?
No. HUD homes are FHA-insured homes the government took back after foreclosure and sells through its own bidding site. See denver-hudhomes.com.
Can a homeowner stop a foreclosure?
Yes. An owner can cure the default before the sale, sell the home, or close a short sale with the lender's approval. Talk to us early; time is the biggest asset.
Mike Oswald, NMLS #261003. Guaranteed Rate, Inc. d/b/a Rate, NMLS #2611. Equal Housing Lender. Licensing: nmlsconsumeraccess.org. You may use any lender; The Kenna Group receives nothing for the introduction. Not a commitment to lend; loans are subject to credit approval.
Further reading
From the Kenna network.
Homes for sale now
Homes over $1 million for sale across the Front Range
Single-family homes from $1,000,000 in 32 cities from Fort Collins to Colorado Springs, highest price first. Active and Coming Soon listings from REcolorado.
Want to see one of these, or a home that is not on the market yet? Call or text 303-955-4220. A live person answers.
Free playbook
The Colorado Luxury Downsizing Playbook.
Sell the estate, buy the right home, move once. The 12-week plan, the tax and cash questions, the ranch, patio, 55+ and golf communities, and the checklist. 8 pages, free.
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Where to look
Luxury foreclosures, short sales and auctions, page by page
Private consultation
Ask us about a luxury foreclosure.
303-955-4220A live person answers. Not a robot, not a phone tree.
- Private showings on your schedule, including evenings and weekends.
- Off-market homes from The Kenna Group's agent network.
- One point of contact from the first showing to the closing table.
Kenna Luxury Real Estate is a division of The Kenna Group at Keller Williams DTC (KWDTC).