Granby Ranch’s lender began foreclosure proceeding with unusual move
On the same day that Granby Ranch’s lender filed a judicial foreclosure complaint that put Granby Ranch property in the hands of a court-appointed receiver, the lender also filed a non-judicial foreclosure with the Grand County public trustee.
There are two foreclosure processes that a lender may pursue when attempting to recover a loan. Lenders often opt to pursue one foreclosure proceeding or the other.
Those familiar with foreclosure proceedings say it is unusual to pursue both as lender Granby Prentice LLC did.
A judicial foreclosure is a civil lawsuit against the borrower handled by the court. A non-judicial foreclosure in Colorado does not go through the courts and instead is handled by the county’s public trustee who acts as an impartial party handling the sale of a foreclosure.
The court accepted Granby Prentice’s judicial filing and appointed a receiver. Granby Ranch’s owner has responded to the foreclosure disputing allegations.
The public trustee returned the non-judicial case to Granby Prentice explaining issues with the foreclosure filing, in part because of the complex nature of the case and inaccuracies contained within.
According to Grand County’s Public Trustee Christina Whitmer, a non-judicial foreclosure is typically a simpler process while the court process is used in more complex types of deeds of trust.
“For us, it has to be very black and white,” Whitmer explained. “Step by step, you have to be able to track everything. This case is too convoluted.”
Whitmer said that Granby Prentice’s foreclosure, which includes five deeds of trust, multiple amendments, assignments and releases, would best be handled by the judicial system.
“I don’t know what their intent was showing us the foreclosure,” Whitmer said.
The filing was missing some key parts. Whitmer said it did not contain the original loan document, including incorrect paperwork and was filed by a California-based attorney. This is an issue because California attorneys cannot foreclose in Colorado.
Granby Prentice’s judicial foreclosure lists a Denver lawyer.
It seems Granby Prentice will be moving forward with the judicial procedure, and those involved with the case say the process could take more than a year as it moves through the courts.
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