A lawyer is not required to be part of the foreclosure sale process. For any large transaction, however, hiring a lawyer to examine contracts and guide the buyer through the process is always advisable.
Foreclosure in Steamboat Springs: Emerging Business Opportunities
By David J. Nagel, P.C. & Bryan T. Shannon
Feldmann, Nagel & Associates, LLC
Hardly a day passes without the bleak appearance of yet another headline marking the sharp and steady increase in foreclosure rates nationwide. And while such news is unquestionably disheartening for those facing financial dire straits, one man's misfortune just might be another man's best opportunity to enter the housing market.
Enter the foreclosure sale. Perhaps you have seen the late night infomercials insisting there is easy money-and lots of it-to be made by the savvy bidder at a foreclosure sale. Buy the book, they say, and the arrival of exorbitant sums of money will be a mere formality.
If it sounds too good to be true, it usually is. Not surprisingly then, making millions or even thousands in the foreclosure market, is not so simple. Mansions do not go for pennies on the dollar, and purchasing a home through a foreclosure sale carries an inherent degree of risk.
Despite the caution with which one must approach the decision to purchase a home at a foreclosure sale, under the right circumstances, foreclosure sales do represent a strong opportunity to purchase a home for a reasonable price.
Foreclosure in Steamboat Springs
Just as the nation as a whole has seen an unprecedented rate of foreclosure, so too has Steamboat Springs observed the number of foreclosures increase, albeit to a lesser extent. From 1998 to 2000, Steamboat averaged just over twenty foreclosures per year. That number more than doubled in 2001, and the rate of foreclosures since then has been relatively steady. That being said, 2008 is set to break the record as the current pace of foreclosure in Steamboat is 115% what it was in 2007.
More population generally means more foreclosures per capita. Foreclosure in Steamboat is somewhat rare in comparison to other parts of Colorado and the nation more generally. For instance, Routt County has a rate of roughly four foreclosures per month or 1 in every 3,454 homes. That rate pales in comparison to Adams County, which has been seeing closer to 960 foreclosures per month, or 1 in every 165 homes. Thus, although Steamboat has not witnessed the degree of foreclosure as more populous regions in Colorado, there remain opportunities to be exploited.
Crucial Considerations When Bidding at a Foreclosure Sale
To find foreclosure sales, the local newspaper is the best place to start. The Public Trustee-in the case of Routt County the County Treasurer is also the Public Trustee-is required to publish notice of impending foreclosure sales in the newspaper for four consecutive weeks prior to the date of the sale.
Prior to attending a foreclosure sale at which you are considering bidding, a thorough title search is a must. The search should reveal all interests and liens in the property. Ascertaining who holds interests in the property will provide a clearer picture of how the process might unfold after the sale.
The high bidder at the sale receives a certificate of purchase. Unfortunately, the process is not yet complete. The certificate of purchase is not title to the property or a right to its possession. Instead it is effectively a right to have the bid amount paid back, plus interest, in the event that a junior lienor exercises its right to redeem.
Every party holding a lien junior to the lien that was foreclosed upon has a right to redeem. The lien being foreclosed is usually a mortgage, while junior liens can include second mortgages, mechanic's liens, and holders of easements. Possession of the right to redeem entitles a party to decide to match the high bid in order to avoid having its lien extinguished. The redemption process can take up to two months to conclude. If redemption occurs, title passes to the redeeming party. On the other hand, if there is no redemption, the winning bidder will receive title to the property.
In arriving at the decision whether to pursue purchasing a home at a foreclosure sale, it is important to understand that the process can be drawn out and rather unpredictable. Those who do not mind doing a little leg work may be rewarded with an excellent property at a discounted price. 
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