Governor Expected to Sign Amended Foreclosure Clean-up Bill With Extended Effective Dates
HB 07-1157, the foreclosure clean-up bill, discussed in this post, is on its way to Governor Ritter, who is expected to sign it. However, although not surprisingly, the version that is leaving the legislature is not the version that was originally introduced. Most notably, a group of provisions that were to take effect on July 1, 2007 will now take effect on January 1, 2008, which grants those who handle foreclosures more time to prepare for the changes. Included under the new effective date, are the provisions that will expand the time homeowner’s will have to cure delinquencies before a foreclosure sale and the elimination of the homeowner’s right to redeem their property after a foreclosure sale.
Unfortunately, this bill does not cure our and CAI’s Colorado Legislative Action Committee’s concerns regarding the new statutory requirement for an entity’s address to appear on the instrument creating a lien to preserve the right to notice of foreclosure. Since an association’s lien is created by the recording of its declaration, which never includes an address, the concern is that an association will not receive notice of a foreclosure and will not be aware of its right to the superlien (Click here to read an article which discusses the superlien). We will keep you posted on developments to cure this problem as they arise.
Again, as stated in the post on last year’s foreclosure reform bill, association board members do not have to take any affirmative actions to comply with these new foreclosure laws – just make sure that your attorney understands the changes!