Colorado foreclosure laws seem crazy:“The Public Trustee must also mail, at lease twenty-one (21) days before the foreclosure sale, a notice to the borrower describing how to redeem the property.The owner of the property may stop the foreclosure proceedings by filing an "Intent to Cure" with the Public Trustee's office at least fifteen (15) days prior to the foreclosure sale and then paying the necessary amount to bring the loan current by noon the day before the foreclosure sale is scheduled.The lender has the option to file a suit for deficiency in Colorado and the borrower has up to seventy five (75) days after the sale to redeem the property by paying the foreclosure sale amount, plus interest.

Would you send a Seven Day Notice to cure?

There is one cure all a buyer can use to protect themselves: the 50% rule.

Our owners are paid out on the 15th and I want to be sure if we have a bounced check there is enough time to collect to avoid shorting the owner their mortgage payment.  3 Day notices to Cure or Quit are posted on Day 7 after the full $100 is charged. 

State law will also determine, along with the actual mortgage or deed of trust documents, any “cure period”, which wouldn’t be applicable to a due on sale violation.”The real risk in a sub2 deal is borne by the seller.

Another thing to keep in mind is that a foreclosure can be postponed, cured, (paid off), sold, refinanced, or the borrower can file bankruptcy to stop the sale up to the day before (even the hour before) the sale.

A servicer MUST enforce the DOS upon discovering the transfer after a 30 day cure window has expired.  

YoureYou're correct once "mud" has been applied & cured sanding is the only way.Being really good at mud work is a muscle memory skill.

If they do, I expect they would contact title insurer A (which very well may be Fidelity as well if title company A is also Fidelity's policy issuing agent) and see what steps need to be taken to cure the defect.Fidelity may offer to indemnify your new buyer's title insurer or offer to reinsure the buyer without exception for this matter themselves, but I would expect Fidelity would not be willing to significantly increase their liability. 

They can attack pretty viciously the person who bought sub too and is not in a position to cure the note.