Robert SagelParticipantFebruary 27, 2023 at 9:27 amPost count: 3
I have two sales this week and have the bids from the bank. I just received this email from the attorney.
“If the bank is the high bidder it would like to take title in the name of Beta Properties, III, LLC. Do you agree that after the sale the bank can assign its bid to Beta so the Certificates of Purchase can be issued in Beta’s name? I know the bank can assign the certificate of purchases to Beta. I was hoping to assign the bids so the C/P’s can be issued directly to Beta.”
I have never had a request like this. Anyone have any suggestions?Sheila ReinerParticipantFebruary 27, 2023 at 9:30 amPost count: 42
We haven’t had this situation either, typically the COP is issued and then we get the assignment before it’s deeded.
If I understand this correctly, the current Holder (bank) submitted the bid but is asking if they are the successful purchaser if the COP and subsequent PTD can be assigned.
I would record the COP in the Holder (bank) name after sale but, have them submit an assignment of COP to the name they want the PTD issued under, just like we would allow any other party to assign the COP.
I don’t see any problem allowing them to assign the COP. Let me know if anyone has any questions regarding this matter.
Denver’s input, in short, is “no, we wouldn’t allow this”.
Denver has always stated that once the sale is complete, the Certificate of Purchase is made to the party who won the bid in all circumstances. The Certificate of Purchase is assignable though, so if the winning entity would like the Confirmation Deed in the name of a different entity, we are always willing to do that, so long as they winning bidder provides us with the assignment that conforms to all of the requirements of statute (38-38-403) and it is provided by the deadline (CRS 38-38-501(2)).
It seems that they are aware that this is the normal process – I’m afraid I don’t see what they hope to gain by having the Certificate of Purchase issued in the name of someone who wasn’t the winning bidder at the auction.
I would probably not allow this to happen. 38-38-106 is very clear that the bidder must be the holder of the evidence of debt or their attorney. It sounds like Beta Properties is an outside party and not holder of the debt so they should not be submitting a bid or receive a COP as holder. I would make the bank assign it to them.
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