BOULDER — A Boulder County District Court judge issued his final order in a foreclosure case involving property at 1002 Walnut St. in Boulder, but it won’t be the final say in the matter.

Four days after the judge’s order, the party on the losing end at the district court level has given notice of appeal.

The case pits the owner of property at 1002 Walnut St. in Boulder against its lender, which sought to foreclose over nonpayment of amounts due as required by a note and deed of trust. The district court on July 21 said that the lender can proceed with a sequential foreclosure sale of business condominium units at that address until the debt is paid but not conduct an en masse sale.

The background: George Williams LLLP borrowed $5.78 million from 1002 Walnut Investments in December 2020. The loan was secured by a deed of trust. When the note came due a year later, no payments were made, thus setting up the foreclosure process. The foreclosure of the property at 1002 Walnut in Boulder, which includes five units, was supposed to occur June 15. But on June 13, the property owner filed a motion requesting an injunction to stop the sale and an order forcing the lender to foreclose on individual units sequentially until the debt had been cleared. The lender argued, also on June 13, that language in the deed of trust that secured the loan gave it unilateral authority to foreclose on the property en masse.

Judge Patrick Butler said his concern was about a potential windfall for the lender should the lender foreclose on all the units en masse.

The lender, 1002 Walnut Investments LLC, a Florida-based firm, said in its notice of appeal, as it did in previous filings, that the deed of trust gives it the authority to foreclose en masse if it so chooses. 

The case has now been moved to the Colorado Court of Appeals in Denver.

The district case was George Williams LLLP v. 1002 Walnut Investments LLC filed in Boulder County District Court, case number 2022cv30387. The appeals court case number is 2022CA1227.