Colorado Legislative Council Staff
NO FISCAL IMPACT
January 23, 1999
Senate Business Affairs
Steve Tammeus (866-2756)
TITLE: CONCERNING FORECLOSURE SALES BY PUBLIC TRUSTEES.
Summary of Assessment
This bill revises statutes governing foreclosure sales by allowing the public trustee to accept certain certification in lieu of the original evidence of debt in the event a debt holder elects to foreclose. The bill states the trustee is not liable for certification found to be false. The bill requires the trustee to add any omitted names to a mailing list and postpone a foreclosure sale to allow the debt holder to republish a sale notice. The bill requires the trustee to mail a copy of the republished sale notice and to make an oral announcement of the postponed sale date.
The bill clarifies that a foreclosure sale may be scheduled upon notice to the trustee of the granting of relief from the automatic stay provisions of the federal bankruptcy code. The bill specifies a time period for a lien holder to file a lien against a foreclosure in order to redeem the lien, and requires a late filing lien holder to post a deposit with the trustee. The bill specifies a procedure for termination of an interest of an omitted party and specifies the content of the notice to be provided to an omitted party. The bill will become effective upon signature of the Governor.
The bill will not affect state revenue or expenditures. The bill may require a public trustee to incur additional administrative costs to mail copies of any republished sale notice, but the amount of those expenditures is anticipated to be minimal. Therefore, this bill is assessed as having no fiscal impact.