HB 18-1254

HB 18-1254, a Colorado bill that has been signed into law, changes several aspects of the foreclosure process for properties with deeds of trust. It removes the requirement for lenders to specify which newspaper should publish foreclosure notices and allows certain notices to be omitted under specific conditions. The bill also adjusts deposit requirements for public trustees and clarifies procedures when foreclosures are paused due to bankruptcy or legal injunctions. This affects homeowners facing foreclosure by modifying how and when they receive important notifications about their property's status, as well as the costs involved in the process. Since it has been signed, these changes are now law and affect anyone going through a deed of trust foreclosure in Colorado.

Official Summary

The bill modifies and clarifies certain aspects of the foreclosure process on property encumbered by a deed of trust as follows: Eliminates the authority of the attorney for a holder of an evidence of debt (holder) to specify the newspaper used to publish foreclosure notices; Allows an amended combined notice to be omitted in a specified circumstances when the notice is provided by the sheriff or public trustee conducting the foreclosure (officer); Modifies the amount of the deposit required for the fees and costs of the public trustee; Omits a statement notifying borrowers of their ability to file a complaint if they believe a lender or servicer has violated certain requirements from the portions of a combined notice that must be published; Makes changes to the bid form used by holders; Clarifies the amount to be paid to the officer if the holder bids an amount that exceeds the amount due to the holder; Prorates the amount of insurance premiums that may be claimed as costs; Further specifies and modifies the procedures for restarting a foreclosure proceeding when a property is subject to a federal bankruptcy case or if a sale has been enjoined or set aside by a court; Specifies the interest and other amounts that may be charged by the holder of a certificate of purchase when property is redeemed; and Clarifies the procedure for junior subsequent lienors to redeem a property.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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