Colorado notes cover Front Range houses, mountain cabins and small land sales in the San Luis Valley. We shop yours to more than one buyer and give you the worksheet for each offer.
How a Colorado holder ends up with less than the note is worth.
The same worksheet comes with every offer.
| Remaining balance | $129,400 |
|---|---|
| Payments left | 168 |
| Buyer’s target yield | 8.0% |
| Purchase price | $115,000 |
| Discount from balance | 11.1% |
| Our fee | shown on every offer |
| Sell the whole note | Sell 60 payments | Keep it | |
|---|---|---|---|
| Cash today | $115,000 | $56,200 | $0 |
| Payments still coming to you | None | 108 payments of $1,140 | 168 payments of $1,140 |
| Total you receive | $115,000 | $179,320 | $191,520 |
| What you give up | Every future payment | The next five years | A lump sum now |
Illustrative example. Totals add up the payments as scheduled; they assume the payer keeps paying and are not adjusted for the value of money over time.
The promissory noteThe mortgage or deed of trustA payment historyThe closing statement from the saleColorado secures real estate loans with a deed of trust, and it handles the trustee differently from other deed of trust states. The trustee named in the document is commonly a county official, the public trustee, where elsewhere it would be a private company or an individual.
When a borrower defaults, the foreclosure generally runs through the public trustee’s office, with a limited court step that authorizes the sale. That places it somewhere between a full lawsuit and a purely private sale. A court foreclosure is also available. Take this as a general description and ask a Colorado attorney or title company how the process stands today and how it applies to your document.
Along the Front Range, in Denver, Aurora, Colorado Springs, Fort Collins and Pueblo, the note holder is likely to have sold a house or a small rental and carried the loan for the buyer. On the Western Slope, around Grand Junction, Montrose and Delta, it may be a farm, an orchard or a home on acreage.
Then there is the land. Small parcels have been sold on installments across the San Luis Valley counties of Costilla and Alamosa and in Park County, and a vacant land note of that kind carries a modest balance and, in some cases, a payer who lives in another state. Mountain cabins and second homes make up another group, some of them sold by owners who have since left Colorado.
A note buyer is purchasing your future payments. They decide the return they need on their money and pay the amount that produces it, which is why an offer sits below the balance owed.
A set process handled by a public office gives buyers a fair idea of what a default would involve, so it is the property, more than the document, that sets one Colorado note apart from the next.
None of this shows in the note itself, so describe the property when you request a price for your Colorado note.
When you sell, the deed of trust is assigned to the buyer along with the note, so the buyer reads it first. Look at your recorded copy and confirm two points: that it shows it was recorded, and that it names the public trustee of the county where the property lies.
If either is missing, or the trustee named is a private party, say so at the start. It may be nothing more than an older form, and a Colorado title company can tell you whether anything needs correcting before a sale.
It is a county official commonly named as trustee in Colorado deeds of trust. When a loan is paid off, the public trustee releases the lien. When a borrower defaults, a foreclosure generally runs through that office. An attorney can explain how it applies to your note.
It is commonly described as non-judicial with a limited court step, because the public trustee conducts the sale after a court authorizes it. A full court foreclosure is also possible. Treat this as a general outline and check the current process with a Colorado attorney.
Yes, where a buyer can get comfortable with the parcel. They look at the down payment, the number of payments made, year-round access and the water situation. A small balance interests fewer buyers because the cost of reviewing the file is the same as on a large one, so ask several.
Generally no. A note is normally yours to sell, and the payer is told where to send future payments. Their rate, payment and term stay as written. Your own documents govern, so we read them first.