Colorado Amends Provisions Related to Foreclosure Sales for Properties Encumbered by Deeds of Trust

Colorado has enacted House Bill 1254, which modifies and clarifies aspects of the foreclosure process for properties that are encumbered by deeds of trust.  Among other things, the bill does the following:

• Removes the authority of attorneys of a holder of an evidence of debt to designate which newspaper is used to publish a foreclosure notice;
• Specifies that an amended combined notice may be omitted in certain circumstances, with prior approval of the public trustee;
• Changes the amount of deposit that is required for fees and costs of the public trustee;
• Updates the bid form used by holders of an evidence of debt;
• Clarifies that if a holder of an evidence of debt is the highest bidder with a bid that exceeds the total amount due shown on the bid, then the holder of the evidence of debt is only required to pay the excess of the amount of the bid over the amount due;
• 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; and
• Modifies the procedure for junior subsequent lienors to redeem a property.

House Bill 1254 is effective August 8, 2018.