2021 Colorado Code
Title 38 - Property - Real and Personal
Article 38 - Foreclosure Sales
Part 3 - Redemption
§ 38-38-306. Rights of Other Lienors to Redeem - Definition
- A judgment creditor whose judgment has been made a lien of record and who has complied with the other conditions of a lienor required by this article may redeem as a lienor.
- A mechanic's lien claimant or any other person claiming the right to a statutory lien on real property shall have the right to redeem as a lienor despite the fact that the claim has not been reduced to judgment, if the lien or lien claim has been recorded as required or permitted by statute and the holder thereof has complied with the other conditions required of a lienor by this article. If another lienor redeems after such lien claimant, that portion of the redemption amount attributable to the claim of such lien claimant, as evidenced by such claimant's recorded lien, shall be held in escrow by the officer until a final judgment has been entered in favor of such claimant confirming the claimant's right to a lien and all periods for appeal have expired, whereupon there shall be paid to such claimant from the escrow the amount of the lien claim as established by the judgment, with any interest earned thereon, and the balance, if any, shall be refunded to the borrower, so long as the last redeeming lienor has otherwise been satisfied. If the claimant releases the lien or fails to establish a right to the lien, the entire escrow shall be paid to the borrower, so long as the last redeeming lienor has otherwise been satisfied. Lien claimants of equal priority, for the purposes of this subsection (2), may act in concert and be deemed to represent one claim in which they share pro rata. The right of the borrower to excess sale proceeds pursuant to a homestead exemption under section 38-41-201 is subordinate to the right of a subsequent deed of trust beneficiary for whose benefit the homestead exemption was waived.
- As used in this section, “borrower” has the same meaning as set forth in section 38-38-111 (6).
History. Source: L. 90: Entire article R&RE, p. 1667, § 2, effective October 1. L. 2006: (2) amended, p. 1471, § 23, effective January 1, 2008. L. 2021: (2) amended and (3) added,(HB 21-1224), ch. 199, p. 1059, § 3, effective May 28.
Editor's note:
- This section is similar to former § 38-39-114, as it existed prior to 1990.
- The effective date for amendments made to subsection (2) by chapter 305, Session Laws of Colorado 2006, was changed from July 1, 2007, to January 1, 2008, by section 27 of chapter 404, Session Laws of Colorado 2007. (SeeL. 2007, p. 1849.)
Law reviews. For article, “Foreclosure by Sale by Public Trustee of Deeds of Trust in Colorado”, see 14 Dicta 5 (1936). For article, “Foreclosure by Sale by Public Trustee of Deeds of Trust in Colorado”, see 28 Dicta 437 (1951).
Annotator's note. Since § 38-38-306 is similar to § 38-39-114 as it existed prior to the 1990 repeal and reenactment of this article and article 39, relevant cases construing that provision have been included in the annotations to this section.
Redemption is purely statutory remedy for lienholders, which orders rights separate and apart from those already obtained by judgment creditors. Chatfield Bank v. Energy Fuels Corp., 42 Colo. App. 233, 599 P.2d 923 (1979), rev'd on other grounds, 200 Colo. 540 , 618 P.2d 1115 (1980).
The right to redeem from an execution sale is purely statutory and is not to be enlarged by judicial interpretation. Marty v. Paul, 75 Colo. 446 , 226 P. 150 (1924); Walker v. Wallace, 79 Colo. 380 , 246 P. 553 (1926); Thomas v. Oken, 699 P.2d 7 (Colo. App. 1984).
Right to redeem is liberally construed to the end that all the property of the debtor may pay as many debts as possible. Walker v. Wallace, 79 Colo. 380 , 246 P. 553 (1926).
“Judgment creditor” defined. The term “judgment creditor” means the judgment creditor or creditors of the person or persons whose lands shall be sold under execution. Leach v. Torbert, 71 Colo. 85 , 204 P. 334 (1922).
Applied in Maloney v. Grimes, 1 Colo. 111 (1868); Paddack v. Staley, 13 Colo. App. 363, 58 P. 363 (1899); Levitt v. Continental Trust Co., 71 Colo. 3 , 203 P. 666 (1922).
