The Major changes to the law will affect the rights a property owner has to retain title to their property when a foreclosure takes place. It also changed the cure periods, redemption periods, lien recordings provisions, and procedures under which a Public Trustee foreclosure sale is conducted in Colorado.
Under the old law, the Public Trustee sale was to be scheduled no less than forty-five days or more than sixty days after the recording of the election and demand. The owner could "cure" if notice of intent to cure was filed fifteen days prior to the sale date.
Under the NEW law, the owner can still cure if notice to cure is filed fifteen days before the sale. Further, the new law the sale must be scheduled no less then 110 days no more then 125 days after the recording to the election and demand. The owner has a longer cure period under the new law. Although the Act gives owners more time to cure, it takes away their redemption right after the sale. The purpose of the Act is to protect the owner without prolonging the process. With a tremendous increase of short sale contingent properties on the market, it is more important than ever that real estate brokers and home owners understand the law. While the short sale process can be time consuming, MANY sellers are able to AVOID foreclosure with the help of a real estate professional.
Now that the new laws have gone into effect, sellers have extended opportunity to secure an offer for purchase and obtain approval from the investor. It is very important to be aware of the deadlines to file notice to cure or a seller may lose any equity they may have in their home.
Time is of the essence, regardless of changes in the law and remember to always choose a knowledgeable real estate professional to represent you.
My team and I are proficient at the short sale process, helping many avoid foreclosure and move on with their lives.
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