State of Colorado Proposed "Fast Track" Legislation Update

Synopsis: Introduced 2/3/2010.   If a foreclosed property is deemed abandoned, an eligible mortgage holder may request an expedited foreclosure sale .  The expedited sale must occur within 40-55 days after recording notice, instead of 110-125 as currently required by Colorado law.

• Expedited sale may be requested for any notice of election and demand recorded  between July 1, 2010 and July 1, 2015.
• An eligible debt holder ( if the debt does not contractually require a longer period of publication) may require a public trustee to hold an expedited sale by filing either:
• A copy of the order for expedited sale [must be filed together with those required by § 38-38-101(1)] ; or  
• A separate document notifying the public trustee of the election for an expedited sale (must be filed within 30 days of filing the notice).
• If  these documents are filed, the public trustee must set an initial date of sale 40-55 days after the date of recording of the notice.
• On or after July 1, 2011, whenever a public trustee forecloses upon a deed of trust, an eligible holder may file a motion for an order of expedited sale. 
• The motion must state that:
• The holder is an eligible debt holder;
• The deed of trust secures an eligible evidence of debt; and
• The property has been abandoned or, in the alternative, the grantor of the deed of trust requests the order for expedited sale.
• The court must set a hearing for 20-30 days from the filing.
• At least 15-days prior to the hearing, notice of the proceedings (in English and Spanish) must be personally served on the grantor, or else conspicuously posted on the property.
• The court must enter an order for expedited sale if evidence supports the allegations and  there is no opposition to the motion.
• An affidavit will be considered prima facia(on its face) evidence of abandonment if it :
• Signed and based on the personal knowledge of the eligible holder
• Signed by the sheriff of the county or a municipal or county building inspector
• States  that the property is not actually occupied
• States at least two of the following facts:
• Windows/entrances are boarded up, or multiple windows are broken.
• Doors are smashed, broken, unhinged, or continuously unlocked
• Gas, electric or water service to the property has been terminated
• The police have received at least two reports of trespassing, vandalism, or other illegal acts committed on the property, OR
• The property is deteriorating and is in imminent danger of falling below minimum community standards for public safety and sanitation
• Evidence demonstrating each supporting fact alleged must be attached  to the Affidavit.
• A signed affidavit by the grantor requesting an order for expedited sale is prima facia evidence of the same.
• Modification of foreclosure proceedings for an expedited sale:
• Replaces the original mailing list with an expedited mailing list, which is filed no later than 15 days after the recording of the notice.
• Eliminates notice related to a foreclosure deferment.
• Eliminates the first mailing of the combined notice, but instead requires a “combined notice” sent within 20 days after recording of the notice.
• A copy of the expedited sale statute must be mailed with the combined notice.
• The combined notice must be published once each week for three weeks, with the last publication more than 5 days before the first schedule date of sale.
• An amended mailing list must be delivered within 30 days after recording of the notice, and the public trustee must send notice to the amended mailing list within 5 days of receiving it.
• If sent within 21 days of the actual date of sale, the sale will continue for one week.  A continued sale may be continued for no more than 3 weeks.
• An expedited sale may not in any circumstances be continued more than four weeks.
• Withdrawal of notice of election and demand: 
• A foreclosure is considered withdrawn (and the holder will have 45-days to file a written withdrawal of the notice) if the eligible holder:
• Fails to file a copy of the order for expedited sale with the public trustee
• Fails to file an expedited mailing list; or
• Delivers an amended mailing list after the deadline.
• If the public trustee does not receive a written withdrawal within 45-days, the public trustee will mail to the eligible holder a notice requesting the filing of the withdrawal. If still not filed within 30-days, the public trustee may record the withdrawal at any time
• Once a foreclosure is withdrawn under this section, the pubic trustee may college from the eligible holder all fees and costs incurred, and also collect a withdrawal fee.
• This act does not apply to judicial foreclosures
• This act is repealed July 1, 2016 .

To view the proposed legislation in its entirety, please click here  

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.