Legal Question in Real Estate Law in Colorado

I apologize for giving this answer, but here it is: This is too big of a question and the number of variables that make up this situation make it nearly impossible to presume a reasonable scenario. For example; you state that you hold a lien in first position, but what other liens are on the property? There are liens that can be granted a "super priority" status over any existing liens because of a special relationship or purpose of the lien. You also state that the lien is against the bank. Do you mean that the bank granted you a security interest in property, or do you have a lien from another source, e.g., HOA assessment lien, that is against the bank's interests?

If you want a merchantable title, you're going to need to consult with an attorney to explore all of the possible options.