Colorado Amends Foreclosure Provisions

• May 4, 2018
• Elizabeth Dailey

Colorado has amended several of its provisions concerning modification of the foreclosure process on property that is encumbered by a deed of trust. These changes are effective as of August 8, 2018, or ninety days following adjournment of the current legislative session.

Publication of Notice of Sale

Under the amendment, the attorney for the holder of the debt may no longer specify the newspaper in which the foreclosure notice is published. The notice must be published in a newspaper in the county where the property to be sold is located.

Deposit Amount

The deposit amount required for the fees and costs of the public trustee has been modified from six hundred fifty dollars ($650.00) to five hundred dollars ($500.00).

Bids

A new section has been added to clarify that if the highest bidder at a foreclosure sale is the debt holder, and the bid exceeds the total debt as shown on the bid, the holder is only required to pay to the officer the excess of the amount bid over the amount due.

Bankruptcy

The section relating to property subject to a federal bankruptcy case has been modified to specify which circumstances will merit a restart of the foreclosure proceedings. These circumstances are: 1) the termination of any injunction, 2) the entry of a bankruptcy court order dismissing the bankruptcy case, 3) abandonment of the property being foreclosed, 4) closing the bankruptcy case; and 5) granting relief from the automatic stay provisions of the Federal Bankruptcy Code. If a request to restart the foreclosure is not received by the public trustee within one year of the occurrence of one of the above mentioned circumstances, the foreclosure shall be withdrawn.

For the full text of House Bill 1254, please refer to https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1254_signed.pdf

 

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