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Bill Detail: HB12-1156

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Chamber House
Title Public Trustee Foreclosure Document Requirements
House Sponsors B. McCann (D)
Senate Sponsors M. Johnston (D)

Current law allows a "holder of an evidence of debt" (holder), generally, a bank or other financial institution, to foreclose on real property under a deed of trust even if the holder's interest is based on an assignment from the original lender and the assignment or other intermediate documents are not produced, simply by providing a statement from the holder's attorney that the holder's interest in the property is valid. Sections 1 and 3 of the bill remove this provision and otherwise tighten the rules for documentation of the holder's interest that must be filed with the public trustee before a foreclosure sale is authorized.

Section 2 amends provisions governing the court order authorizing sale by a public trustee (rule 120 order, referring to C.R.C.P. 120) to place the burden of proof on the holder in all cases to demonstrate that the holder does in fact have a valid assignment or other basis for its assertion that it is entitled to foreclose on the property. Section 2 also explicitly states that the rule 120 order is not a final judgment adjudicating all claims of rights and interests in the property, as a judgment under rule 105 (a "quiet title judgment") would be.

Section 4 suspends any eviction proceeding if the rule 120 order has been challenged, until the challenge is resolved.

Date Introduced 00/00/0000
Amendments out of Committee
Bill News None
House Committee Economic and Business Development
Senate Committee
Status House Committee on Economic and Business Development Postpone Indefinitely (03/14/2012)
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Link to Fiscal Notes Fiscal Notes (06/14/2012)  
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