TREASURER & PUBLIC TRUSTEE QUADRENNIAL February 14, 15, 16, 2011.
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Transcript of TREASURER & PUBLIC TRUSTEE QUADRENNIAL February 14, 15, 16, 2011.
TREASURER & PUBLIC TRUSTEE QUADRENNIALFebruary 14, 15,
16, 2011
2011 CCTA/CTPA QuadrennialFebruary 14, 15 and 16Southwest Weld Office
4209 WCR 24 ½, LongmontHosted by Weld County Treasurer’s Office
AGENDAMonday, February 14, 2011 - PUBLIC TRUSTEES’ TRAINING
9:00 – 9:30 Welcome, Introductions and Overview
9:30 – 10:15 Releases and Tax Escrow
10:15 – 10:30 Break
10:30 – 11:30 Continue Releases and Tax Escrow
11:30 – 12:30 Lunch
12:30 – 2:30 Foreclosures, Bankruptcies, and Financials
2:30 – 2:45 Break
2:45 – 4:30 Continue prior subjects (wrap-up & review), Customer Relations and Website Info
Tuesday, February 15, 2011 - TREASURERS’ TRAINING
9:00 – 10:00 Welcome, Introductions and Overview
10:00 – 10:45 Tax types, Certifications, Special Assessments, SIDS, TIFS, Tax Notices, SB 25, Electronic Notices
10:45 – 11:00 Break
Tuesday, February 15, 2011 - TREASURERS’ TRAINING CONTINUED
11:00 – 12:00 Tax Collections, Interest Chart, Deadlines, Collection Fees, Month-end Processing, City’s Share, SO, Distribution, Treasurer Fees, Reports to Commissioners, 6-Month Reports
12:00 – 1:00 Lunch
1:00 – 2:00 Abatements, Exemptions, Omitted Property, Senior & Veterans Homestead Exemptions, Reports to State
2:00 – 2:30 Certificate of Taxes Due
2:30 – 3:00 Break
3:00 – 3:30 Investments
3:30 – 4:00 Bankruptcy
4:00 – 4:30 Customer Relations
Wednesday, February 16, 2011 - TREASURERS’ TRAINING CONTINUED
9:00 – 10:00 Delinquent Tax Notices, Advertising, Distraints, Endorsements, Mobile Home Notifications, Severed Mineral Notification
10:00 – 10:30 Tax Lien Sale, County Employee, Types of Bidding (Round robin, Online, Straight auction), Funds Accepted, Certification to Clerk
10:30 – 11:00 Break
11:00 – 11:30 Redemptions, Mechanics, Certified Funds, Assignment of Certificates
11:30 – 12:30 Lunch
12:30 – 1:30 Treasurer’s Deeds
1:30 Wrap-up and Review (Website Information)
Overview
PUBLIC TRUSTEERelease of Deed of TrustEscrow AgentForeclosuresBankruptcy; Temporary
Restraining Order, Preliminary Injunction
Financial
CCTA & CPTA DISTRICTS
Jeannie Whiddon
District 1: Garfield, Grand, Jackson, Moffat, Rio Blanco & Routt
Steve Ellington
District 2: Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, El Paso, Jefferson, Larimer, Pueblo & Weld
Bob Sagel
District 3: Cheyenne, Elbert, Kit Carson, Lincoln, Logan, Morgan, Phillips, Sedgwick, Washington & Yuma
Kerry Carl
District 4: Eagle, Gunnison, Hinsdale, Lake, Pitkin & Summit
Irene Kincade
District 5: Chaffee, Clear Creek, Custer, Fremont, Gilpin, Park & Teller
Rosemary Murphy
District 6: Archuleta, Delta, Dolores, La Plata, Mesa, Montezuma, Montrose, Ouray, San Juan & San Miguel
Lois Widhalm
District 7: Alamosa, Conejos, Costilla, Huerfano, Mineral, Rio Grande & Saguache
Susan Cochell
District 8: Baca, Bent, Crowley, Kiowa, Las Animas, Otero & Prowers
DISTRICT CHAIRS
TREASURERProperty Taxes & DutiesTax NoticesTax Collection, Month End, DistributionAbatements, Exemptions, Reports to StateCertificate of Taxes DueInvestmentsBankruptcy Customers Pre Sale & Tax Lien Sale, RedemptionsTreasurer’s Deed
TREASURER’S CALENDAR
10th of each month: Distribution January
-Mail Tax Statements
-Post Pre-Payments
-1099’s for redemption interest paid
-Change in bank BOCC certificationFebruary
-1st Half Payment Due Postmarked February 28th
-Mail 1098 to IRS
• 10th of each month: Distribution • March -School District Interim Distribution
• April-Full Payment Due April 30th
• May-School District Interim Distribution
• June-2nd Half Payment Due June 15th-School District Interim Distribution-Mail Delinquent Personal Property Tax Statements-Mail Delinquent Real Property Tax Statements
• July -Mail subtax notices (15 days after delinquent notices)
10th of each month: DistributionAugust -Abatements and omitted reports to Assessor
-Abatement report to stateSeptember -Delinquent Personal Property Publication
– If applicable
-1st Delinquent Mobile Home Publication – If applicable
-Delinquent Real Estate Publication (3 consecutive weeks, last pub one full
week prior to sale)
10th of each month: DistributionOctober, November or December
-Tax Lien Sale 2nd Monday of DecemberDecember
-Input new mill levies
-Input old and new Special Districts amounts
-One year assessments from other entities
-Tax roll and notice processing
CCTA & CPTA DISTRICTS
Jeannie Whiddon
District 1: Garfield, Grand, Jackson, Moffat, Rio Blanco & Routt
Steve Ellington
District 2: Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, El Paso, Jefferson, Larimer, Pueblo & Weld
Bob Sagel
District 3: Cheyenne, Elbert, Kit Carson, Lincoln, Logan, Morgan, Phillips, Sedgwick, Washington & Yuma
Kerry Carl
District 4: Eagle, Gunnison, Hinsdale, Lake, Pitkin & Summit
Irene Kincade
District 5: Chaffee, Clear Creek, Custer, Fremont, Gilpin, Park & Teller
Rosemary Murphy
District 6: Archuleta, Delta, Dolores, La Plata, Mesa, Montezuma, Montrose, Ouray, San Juan & San Miguel
Lois Widhalm
District 7: Alamosa, Conejos, Costilla, Huerfano, Mineral, Rio Grande & Saguache
Susan Cochell
District 8: Baca, Bent, Crowley, Kiowa, Las Animas, Otero & Prowers
DISTRICT CHAIRS
RELEASES &PARTIAL RELEASES OF
DEEDS OF TRUSTPresented by
Carol Snyder
Adams County Public Trusteefor
QUADRENNIAL TRAINING 2011
38-39-101 et seq. C.R.S. The statutory provisions related to releasing Deeds of
Trust are in Title 38, Article 39 of the Colorado Revised Statutes (CRS).
Any deed of trust that names any person other than the Public Trustee (PT) as “trustee” or that secures an obligation other than an evidence of debt (EOD) shall be deemed a MORTGAGE and foreclosed as a mortgage (through the courts).
Except any deed of trust that names a PT as “trustee” and secures an obligation other than an instrument evidencing a debt SHALL BE RELEASED as set forth in 38-39-102(5).
DEFINITIONS Assuming Party – the person or entity that has officially assumed
responsibility for payment of the loan – usually by an Assumption Agreement or similar documentation
Current Address of Original Grantor – If the borrower (grantor) has MOVED and the holder (lender) has a current address for that party it is to be provided or a check box is provided to indicate the current address is unknown
Current Owner – the original borrower may have sold or transferred title to the property without doing a formal Assumption of the loan – the current owner is the person/entity currently holding title/ownership of the property even though the DOT may have been signed by the previous owner of the property. NOTE: Request for Release form will show ORIGINAL borrower name(s) even if someone else currently owns the property and is asking for the Release – the lien needs to come off the Clerk’s records the same way it went onto the Clerk’s records
DEFINITIONS Certified Copy – a copy of a recorded document
certified to be true and correct by the Clerk & Recorder of the County where the document was recorded
Corporate Surety Bond – a bond issued by a person authorized to issue bonds in COLORADO with the PT as obligee conditioned against the delivery of an original evidence of debt to the damage of the PT
Deed of Trust (DOT) – does NOT convey title to real property but is a lien on real property to secure payment of an indebtedness and contains a grant of the property to the Public Trustee for the benefit of the Holder, and grants to the PT a power of sale (which allows PT foreclosures)
DEFINITIONS Evidence of Debt (EOD) – a writing that evidences a
promise to pay or a right to payment of a monetary obligation – promissory note, loan, credit or similar agreement or a monetary court judgment
HOLDER of an EOD – means the person:– In actual possession of, or– Entitled to enforce an EOD
EXCEPT “holder” does NOT include a person acting as a nominee solely for the purpose of holding the EOD or DOT as an electronic registry without any authority to enforce the debt (Mortgage Electronic Registration Systems – MERS)
DEFINITIONS— Presumed to be the HOLDER: (a) person who is the
obligee of EOD and is in possession of an ORIGINAL EOD,
(b) person in possession of original EOD with proper indorsement or assignment to such person (assignment does NOT need to be recorded per Colorado law),
(c) person in possession of negotiable instrument evidencing a debt, which has been duly negotiated to such person or to bearer or indorsed in blank; or
(d) person in possession of an EOD with authority to enforce EOD (authority may be granted by original EOD or DOT) as agent, nominee, trustee or similar capacity for the obligee of the EOD.
DEFINITIONS Person – any individual, corporation, government or
governmental subdivision or agency, business trust, estate, trust, LLC, partnership, association or other legal entity.
Qualified Holder – holder of EOD that is ALSO one of the following (see 38-38-100.3(20)):
(a) a bank
(b) an industrial bank
(c) a federally chartered savings & loan doing business in Colorado, or a state -chartered savings & loan association per Title 11, Articles 40 – 46 CRS
(d) a supervised lender licensed to make supervised loans, AND that is either:
DEFINITIONS(I)a public entity that has issued voting
securities listed on a national security exchange registered under the Securities Exchange Act, or
(II) an entity whose all outstanding voting securities are held, directly or indirectly, by a public entity
(e) an entity in which ALL outstanding voting securities are held by a public entity that also owns all of the voting securities of a supervised lender, licensed to make supervised loans
(f) an FHA approved mortgagee
DEFINITIONS(g) a federal or state chartered credit union doing
business in Colorado
(h) an agency or department of the federal government
(i) an entity created or sponsored by the federal or state government that originates, insures, guarantees or purchases loans, or a person acting on behalf of such entity to enforce an EOD or the DOT, or
(j) an entity listed in (a) to (i) above, acting as agent, nominee or trustee for another person EXCEPT as set forth in subsection (10) of this section.
REQUIREMENTS FOR RELEASE OR PARTIAL RELEASE OF A DEED OF
TRUST WRITTEN, duly executed and acknowledged request from the
HOLDER of the EOD, holder’s agent or attorney, or a title insurance company providing an indemnification agreement and affidavit
Production of the ORIGINAL EOD (except if Qualified Holder or title company or if original EOD is lost a Surety Bond)
Receipt of the PT fee ($15) and recording fees ($11 for 1st page PLUS $5 per additional page)
Receipt of a current address of original grantor, assuming party or current owner (or notice that they have no such current address) – PT discretion to release without current address information
Original recorded DOT or a legible copy (copy of AT LEAST pages showing Clerk’s stamp of recording information, names of lender and borrowers, and signature pages of DOT)
REQUESTS FOR RELEASES BY “QUALIFIED HOLDERS” and TITLE
COMPANIES 38-39-102(3) allows Qualified Holders to request
Releases without production of the original EOD because they provide indemnities to the PT
38-39-102(3)(c) allows Colorado licensed title insurance companies to request a Release without production of the original EOD – they are deemed to have agreed to indemnify and defend PT against damage claims for processing the Release. Affidavit (in standard form) MUST be provided by title insurance company.
REQUESTS FOR RELEASES BY ANYONE WHO IS NOT A QUALIFIED HOLDER OR
TITLE INSURANCE COMPANY Anyone NOT a Qualified Holder or title insurance company
requesting a Release without production of the original EOD must provide to the PT a corporate Surety Bond in an amount 1.5 times the ORIGINAL principal balance recited in the DOT.
Bond shall be effective for 6 years from date of recording of Release, or other time period required by Colorado statutes of limitations, whichever is less, OR
Until such time as any claim made against the PT within such time period is resolved, whichever is longer.
Surety Bond is retained by PT in safekeeping in event it is needed.
PT fees must include fees for recording BOND as well as the Release of DOT
PT May Request “Evidence” of Current Holder
You MAY request evidence satisfactory to you that the person/entity signing the Request for Release of Deed of Trust is the CURRENT HOLDER of the EOD.
“Evidence” might be copies of the indorsements, assignments or allonges to the EOD or might be a servicing agreement that allows the servicer to enforce the EOD and to release it
An “agent” or “nominee” is usually NOT the current HOLDER of the EOD
MERS is usually NOT the current HOLDER of the EOD unless the EOD is actually payable to MERS
CONSULT WITH YOUR COUNTY ATTORNEY (if knowledgeable and available) or HIRE AN ATTORNEY (the PTAC attorney Rich Krohn will work for individual PTs but YOU will be obligated to pay him) to ask legal questions!
FORMS Forms for full and partial Releases are on the PT Association’s
website and on many county PT websites – these forms are set forth in Colorado Statutes (38-39-107 and 38-39-108)
Forms received for Releases “may be in substantially the … form” set forth in law, but do NOT have to be exactly as shown in CRS
One form (without production of original EOD) is for use by QUALIFIED HOLDERS or title companies or by anyone else with production of a Surety Bond (Adams County RECORDS the Surety Bond as a separate document returned to US after recordation; REMEMBER to collect recording fees for the Surety Bond)
The other form is for use by ANYONE (with production of original EOD) – HOWEVER, we do not routinely reject a Request for Release on the WRONG “with production” form but we NOTE on the face of it that a Surety Bond was provided in lieu of the original EOD if that’s the case
REVIEW OF FORMS & DOCUMENTS Check DOT first to make sure it is “granted or conveyed” to PT
and that property is located in YOUR county IF property is NOT located in YOUR county but DOT was
recorded in your county IN ERROR, you may process the Release but notify submitter that it should ALSO be released and recorded in the county where the property is located
IF property IS located in YOUR county but DOT was recorded in another county IN ERROR, you should process the Release and notify submitter that it should also be released and recorded in the county where it was recorded in error
If NO LEGAL DESCRIPTION is provided on Request for Release form, it is “deemed to be a FULL Release” even if the “Partial” box is checked on the form. If it is to be a PARTIAL RELEASE, must have legal shown on form or in an attachment (exhibit).
REVIEW OF FORMS & DOCUMENTS
PT is to examine Request for Release and presented documents to assure information is correct – names, dates, recording information and, if a Partial Release, that legal description appears to be some portion of the total property encumbered by the DOT – same subdivision or Township/Section/Range
Appropriate box on form should be checked on Request for Release WITHOUT production of EOD to indicate whether a Qualified Holder or Title Insurance Company is submitting the Request or if Surety Bond is submitted.
Affidavit of DiscrepancySome PTs accept a notarized Affidavit of
Discrepancy from the submitter if there are “minor differences” between the EOD and the DOT relating to:– Dates– Amounts– Misspelled names (transposed letters) but NOT
completely different names
NOTE: The Affidavit of Discrepancy could be an exhibit to the Request for Release or it could be recorded as a separate document (PT preference)
REVIEW OF FORMS & DOCUMENTS Be SURE you have an address for return of Release (once it is
recorded by Clerk) and for return of other submitted documents (note and DOT). If unknown or not indicated on Request form, send back to submitter – MOST submitters provide a self-addressed postage paid envelope for document returns
If one of the “joint tenant” holders is DECEASED, the death certificate of that holder may be provided to PT – on Request for Release form (on or near signature line for holder) mark “death certificate exhibited”.
If one of the “tenants in common” holders is DECEASED, you may need Letters Testamentary for that decedent’s estate to show WHO can sign on decedent’s behalf, or a Small Estate Affidavit may show who can sign on decedent’s behalf
REJECTIONSPT should reject Request for Release if ALL
required documents and accurate fees are not submitted
PT should reject Request for Release if information on submission is NOT accurate and complete – PT may make minor corrections, such as an omitted middle initial shown on original DOT may be interlineated by PT in Request for Release in order to expedite Release and not reject for a minor error
TRACKING PROCESSED RELEASES
It is suggested that you keep a daily or weekly spreadsheet (or some other means) to track the Releases you have processed and sent to the Clerk’s office for recording. If a customer calls you can locate the borrower’s or submitter’s name on your spreadsheet and let them know WHEN you processed the Release and sent it for recording.
That may give the customer an idea of when the release of DOT may be recorded, the lien released and when they may expect to receive the original, recorded Release of DOT in the mail.
REJECTION FORM/LETTER PT should reject and RETURN ENTIRE PACKAGE to
submitter if there are problems Include a form or letter indicating WHAT ALL OF
THE PROBLEMS ARE so that submitter can remedy them for re-submission
Keep a copy of the reject form/letter with grantor/borrower’s name on it so you can respond to phone calls or questions as to why Release hasn’t been processed
Use reject form/letter to expedite processing of Release upon re-submission – what was wrong and has it been remedied?
FEE ALLOCATION & RECORDING
PT deposits ENTIRE payment into PT accountPT retains $15 fee for processing ReleasePT transmits Release to Clerk and Recorder for
recordation; many Clerks send recorded Releases directly to the person shown on the form, others return recorded Releases to PT
PT pays Clerk and Recorder appropriate Release recording fees:– $11.00 for one page– $5.00 for each additional page
IMPORTANCE OF TIMELY PROCESSING OF RELEASES OF
DEEDS OF TRUST Many homeowners are WAITING for release of one DOT in
order to refinance property with a new loan Colorado law says a Release must be processed by the
Holder and recorded within 90 days after payment of the debt is made (CRS 38-35-124) so long as debtor pays appropriate fees for such Release – MANY Holders do NOT request releases in a timely manner – PT may get calls from borrowers asking WHY release hasn’t been done but PT has never received a Request for Release from the Holder – PT should refer borrower back to Holder
Homeowners want to KNOW the lien on their property has been released!
CAUTIONS! Powers of Attorney (POA) – someone attempting to
execute a Request for Release of DOT acting for the Holder under a Power of Attorney. The POA may NOT give them the authority to release a DOT or to execute a Request for release on behalf of the Holder
Lack of “Chain of Title” – Original holder was XYZ, but the signer alleging to be the CURRENT holder is ABC – does Note contain any indorsements from XYZ to ABC?
OLD loans (maturity date more than 15 years ago) – Holder of EOD may not be alive or no longer exist – homeowner can be referred to CRS 38-39-201 or can go to Court for Order declaring the Deed of Trust is Released.
CAUTIONS!Signatures and notarizations of officers of
entities should clearly INDICATE the title/position of that person with the entity, such as:
ABC Bank
By _______________________________
Tom Smith, Vice President of ABC Bank
The foregoing Request for Release was acknowledged before me on _________, 20__ by Tom Smith, as Vice President of
ABC Bank.
_________________________________
Notary Public
CAUTIONS!Sometimes the EOD (promissory note etc.) is
NOT to be cancelled or marked “paid in full” – it could be that the property is no longer under a lien for payment of the EOD but some OTHER obligations still exist under the EOD so the EOD will NOT be “extinguished”
Usually the submitter (lender) will indicate for the PT to leave the EOD “live” but to only release the DOT (the DOT is the “lien” on the property described)
CAUTIONS!MANY submitters (lenders or servicing
agents) ask that the Clerk & Recorder return the recorded Release and loan documents to them and they forward it to the borrowers. BUT frequently they do not forward those documents in a timely manner. If your Clerk’s records show the Release was recorded and sent back to the submitter, you may refer the customer to their former lender to ask that the release and “paid” loan documents be sent to the customer
ELECTRONIC RELEASES
IngeoKuveraSimplifile
These 3 outside vendors and other in-house programs allow electronic submission, examination, processing and forwarding to Clerk for recording of Releases and Partial Releases of DOTs.
SAMPLE FORMS
Release Tracking Sheet/Accounting Sheet
Reject Letter/Form
Reject Tracking Sheet
Would you accept and process the Release?Would you reject and return the Request for
Release?WHY?
EXERCISE – Examine Some Requests for Release of DOT