Colorado Legislature Passes New Foreclosure Bills
from CAR

Foreclosure Protection Act summary (SB06-071)
To reduce the number of foreclosure scams and fraud affecting the public, the State passed SB 71.  This deals with Equity Purchasers (investors) and Foreclosure Consultant in the foreclosure process.

The law requires written disclosures and agreements to protect homeowners' rights, and to clearly disclose the services that a foreclosure consultant will provide.  Rescission and timelines for implementation apply.  If you violate the law, there are civil and criminal penalties.

If you (or your clients/investors) assist a homeowner in foreclosure, or purchase a home in foreclosure you should obtain advice from your attorney about this Bill ASAP.  It is effective now.

Real Estate Foreclosures (HB06-1387)
Big changes afoot in the foreclosure time laws.  This Bill affects the Public Trustee fee structure and duties. 

Most notably, it does away with the homeowner's redemption period.  Sales of non-agricultural property will be 110-125 days after the Notice of Election and Demand gets recorded (ag property 215-230 days).  Bankruptcy provisions affecting the timeline are included.

There are new requirements for the form of the bid.  Also, a foreclosing party which does not have the original evidence of debt or proper endorsement will have special requirements.

There are new redemption timelines and rules for junior lien holders, procedures, and timelines for lien holders.