HB 26-1098

HB 26-1098 is a Colorado bill that updates foreclosure procedures for properties. It changes how public trustees are paid and removes some requirements they previously had to follow when dealing with county commissioners. The bill also clarifies rules around notices sent before foreclosures, the rights of junior lien holders (people who have secondary claims on property), and what happens to leftover money from a sale if no one claims it. Since the status is "signed," this means that the governor has approved the bill, making these changes official law in Colorado.

Official Summary

The bill makes modifications related to foreclosure procedures in the 'Colorado Public Trustee Act' to:Set the salary of the public trustee in counties where the county treasurer serves as the public trustee;Eliminate the requirement that a public trustee make certain statements to the board of county commissioners under oath;Repeal the requirement that a public trustee appointed by the governor be subject to the state 'Procurement Code';Clarify the source of funds used to pay a public trustee; Repeal the definition of 'certified copy' and references thereto;Define 'nonmaterial misstatement';Clarify the date by which the public trustee or sheriff conducting a foreclosure (officer) must mail the combined notice of sale, right to cure, and right to redeem to persons on an amended mailing list;Clarify that a junior lienor is entitled to cure the default if the junior lienor files with the officer;Specify that unclaimed remaining amount for which a property is sold at a foreclosure sale that is in excess of the bid amount may be transferred to the state treasurer for disposition or held by the county treasurer pursuant to the terms of a county resolution regarding unclaimed funds;Add a requirement regarding redemption that specifies that if a lien is assigned, the holder's rights are valid only if the assignment of the lien is duly recorded at least 15 calendar days prior to the date of sale; Clarify an omitted party's rights after a foreclosure sale; andSpecify when an omitted party's interest may be terminated.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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