Judicial Foreclosure
I am a junior lien holder on a property, and I just rec'd a notice of rights to dure or redeem. When I called the law firm handling the foreclosure for the bank, they said it was going to proceed as a judicial foreclosure. What does that mean to me as a lien holder? Will I have the right to redeem or acquire the property? Or am I just another bidder at auction? How is this different than a public trustee sale?
As a junior lien holder, you will be just another bidder at the court house. If the bid amount > the amount of superior lien, then whatever the excess left will be paid to junior lien holders according to their priority order. If the bid amount is < the amount of superior lien, then your junior lien posistion is wiped out. So, in order to protect your position, you have to bid upto the amount of superior lien + your junior lien, this means you'll have to cover the amount owed to the superior lien holder.
I am assuming that you are holding a note that is junior to the foreclosing note. You might check on the foreclosure laws in CO, but here in CA you can cure the default pretty close to the date of sale. If this time has not passed you can bring the senior note current and then foreclose yourself on your note.