Colorado Servicing Reference Guide
- Kacey Olson
| Citation | Topic | Requirement |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-3-103 | Change in Terms of Revolving Credit Account | With respect to a revolving credit account, if a lender makes a change in terms or the required minimum periodic payment is increased, the lender must mail or deliver written notice of the change to the borrower at least 1 billing cycle before the effective date of the change. The notice must be given in advance, but need not be given 1 billing cycle in advance, if the change has been agreed to by the borrower or if the change is an increase in a finance charge, periodic rate, or other permitted charge, as a result of the borrower's delinquency or default. See Colo. Rev. Stat. Ann. §5-3-103 regarding details as to when the notice is not required. |
| Colo. Rev. Stat. Ann. §38-38-103 | Combined Notice - Non-Judicial | (1)(a) No more than twenty calendar days after the recording of the notice of election and demand, the public trustee shall mail a combined notice as described in subsection (4) of this section to the persons set forth in the mailing list. (b) No more than sixty calendar days nor less than forty-five calendar days prior to the first scheduled date of sale, the public trustee shall mail a combined notice as described in subsection (4) of this section to the persons as set forth in the most recent amended mailing list. If there is no amended mailing list, the public trustee shall mail a combined notice as described in subsection (4) of this section to the persons as set forth in the mailing list. (5)(a) No more than sixty calendar days nor less than forty-five calendar days prior to the first scheduled date of sale, unless a longer period of publication is specified in the deed of trust or other lien being foreclosed, a deed of trust or other lien being foreclosed shall be deemed to require the officer to commence publication of the combined notice, omitting both the statements under subparagraphs (II) and (III) of paragraph (a) of subsection (4) of this section and the copies of the statutes under paragraph (b) of subsection (4) of this section and adding the first and last publication dates if not already specified in the combined notice, for four weeks, which means publication once each week for five consecutive weeks. |
| Colo. Rev. Stat. Ann. §38-38-111(1) | Distribution of Proceeds of Sale - Non-Judicial | (1) An overbid shall be first applied to any deficiency as indicated in the holder's bid, and then paid to the officer to be held in escrow until the end of all redemption periods as provided in section 38-38-302 . (2) Upon the expiration of all redemption periods provided in section 38-38-302 , any remaining overbid shall be paid in order of recording priority to junior lienors, determined as of the recording date of the notice of election and demand or lis pendens according to the records, who have duly filed a notice of intent to redeem and whose liens have not been redeemed pursuant to section 38-38-302 , in each case up to the unpaid amount of each such lienor's lien plus fees and costs. A lienor holding a lien that is not entitled to redeem by virtue of being recorded after the notice of election and demand, a lienor that has not timely filed a notice of intent to redeem pursuant to section 38-38-302 , or a lienor who accepts less than a full redemption pursuant to section 38-38-302(4)(c) shall not have any claim to any portion of the overbid. After payment to all lienors and the holder entitled to receive a portion of the overbid pursuant to this section, any remaining overbid shall be paid to the owner. |
| Colo. Rev. Stat. Ann. §38-38-103.2 | Dual Tracking Prohibited - Judicial | (3) If the borrower has received confirmation from the servicer that the borrower has submitted a complete loss mitigation application or has been offered and has accepted a loss mitigation option and is complying with its provisions, and yet a notice of election and demand pursuant to section 38-38-101 has been filed or action is being taken pursuant to section 38-38-105 or 38-38-106 with regard to the borrower, then, in order to stop the foreclosure sale, no later than fourteen calendar days before the sale date, the borrower must present to the officer the borrower's written notification from the servicer indicating receipt of a complete loss mitigation application dated at least thirty-seven days prior to the sale date or acceptance of a loss mitigation option, and, if the borrower does so: (a) As soon as possible, but no later than three business days after receipt of the notification, the officer shall contact the attorney for the servicer or holder or the servicer or holder, if not represented by an attorney, by telephone, electronic mail, or first-class mail and inquire as to the status of the loss mitigation option. The officer shall document this inquiry. Until the servicer or its attorney responds to the inquiry, the officer shall continue the sale in accordance with section 38-38-109 (1)(a). (b) If the attorney for the servicer or holder or the servicer or holder, if not represented by an attorney, fails to respond within seven calendar days to an inquiry under paragraph (a) of this subsection (3), then, as soon as possible but no later than the fourteenth day after the date of the inquiry, the officer shall send a certified letter to the attorney for the servicer or holder or to the servicer or holder, if not represented by an attorney, as listed on the notice of election and demand, inquiring as to the status of the loss mitigation option. The servicer or holder shall reimburse the officer for the cost of mailing the letter. (c) If, after being contacted in accordance with paragraph (a) or (b) of this subsection (3), the attorney for the servicer or holder or the servicer or holder, if not represented by an attorney, gives the officer a written statement via electronic mail or first-class mail disputing that a loss mitigation option has been offered and accepted or that the borrower is complying with its terms, the officer shall proceed with the sale. (d) (I) If the attorney for the servicer or holder or the servicer or holder, if not represented by an attorney, acknowledges that a loss mitigation option has been offered and accepted and that the borrower is complying with its terms, the officer shall continue the sale in accordance with section 38-38-109 (1)(a), and the holder shall withdraw the notice of election and demand within one hundred eighty calendar days after the date of the acknowledgment if the borrower continues to comply with the terms of the loss mitigation option. |
| Property - Real and Personal / Colo. Rev. Stat. Ann. §38-38-104(2) | Final Cure Statement - Non-Judicial | (IV) Within seven business days after the officer's notification to the holder or servicer, or to the attorney for the holder or servicer, that the officer has received the funds necessary to cure the default as reflected on the initial or updated cure statement, the holder or servicer or the attorney for the holder or servicer shall deliver to the officer a final statement, reconciled for estimated amounts that were not or would not be incurred as of the date the cure proceeds were received by the officer, along with receipts or invoices for all rule 120 docket costs and all statutorily mandated posting costs claimed on the cure statement. All amounts of cure proceeds received by the officer in excess of the amounts reflected on the final statement shall be remitted by the officer to the person who paid the cure amount. |
| Property - Real and Personal / Colo. Rev. Stat. Ann. §38-38-106 | Foreclosure Bid | The foreclosing lender or the lender's attorney must submit a bid that is received by the officer no later than noon on the second business day prior to the date of sale. If the bid is not received by the office by the deadline, the officer will continue the sale for 1 week and will announce or post a notice of the continuance at the time and place designated for the sale. The bid must be signed and acknowledged. |
| CO Uniform Consumer Credit Code | Colo. Rev. Stat. Ann. §5-2-203 | Late Payment Fees | (1) With respect to a consumer credit transaction, the parties may contract for a delinquency charge on any installment or minimum payment not paid in full within ten days after its scheduled due date in an amount not exceeding: (b) Five percent of the unpaid amount of the installment or minimum payment due for a transaction secured by an interest in land. |
| Colorado Rules of Civil Procedure / Rule 120 | Motion for Order Authorizing Sale and Notice of Response Deadline | • When seeking a foreclosure sale under a power of sale, a “Verified Motion for Order Authorizing a Foreclosure Sale under C.R.C.P. 120" must be filed in the district court, with evidence of debt, deed of trust containing the power of sale, and any subsequent modifications of these documents. • The Notice of Response Deadline must include the following: "“If this case is not filed in the county where your property or a substantial part of your property is located, you have the right to ask the court to move the case to that county. If you file a response and the court sets a hearing date, your request to move the case must be filed with the court at least 7 days before the date of the hearing unless the request was included in your response.” • The Notice of Response Deadline must include the mailing address of the moving party and/or authorized servicer and include the name, mailing address, and telephone number of a representative authorized to address loss mitigation requests. • A copy of C.R.C.P. 120 shall be included with or attached to the notice. • A true copy of the notice must be filed with the clerk. • A true copy must be posted in a conspicuous place on the subject property. • Proof of mailing and delivery of the notice to the clerk for posting in the courthouse, and proof of posting of the notice on the residential property shall be evidenced by the certificate of the moving party and/or agent. • Order Authorizing Foreclosure Sale; Effect of Order - If no response has been filed by the response deadline set by the clerk, and if the court is satisfied that venue is proper and the moving party is entitled to an order authorizing sale, the court shall forthwith enter an order authorizing sale. • Any order authorizing sale shall recite the date the hearing was completed, if a hearing was held, or, if no response was filed and no hearing was held, shall recite the response deadline set by the clerk as the date a hearing was scheduled, but that no hearing occurred. • Appointment of Attorney - The court shall not require the appointment of an attorney to represent any interested person as a condition of granting such motion, unless it appears from the motion or other papers filed with the court that there is a reasonable probability that the interested person is in the military service. |
| Courts and Court Procedure / Colo. Rev. Stat. Ann. §13-21-109 | Non-Sufficient Funds Notice | Notice that a check has not been paid upon presentment must be in writing and given in person or sent by certified mail, return receipt requested and postage prepaid, or by regular mail supported by an affidavit of mailing sworn and retained by the sender. The notice must include: (1) the date the check was issued; (2) the name of the bank, depository, person, form or corporation on which it was drawn; (3) the name of the payee; (4) the face amount; (5) a statement of the total amount due, which must be itemized; (6) a statement that the maker has 15 days from the date notice was given to make payment in full of the total amount due; and (7) a statement that, if the total amount due is not paid within 15 days after the date notice was given, the maker may be liable in a civil action for 3 times the face amount of the check but not less than $100 and that, in such civil action, the court may award court costs and reasonable attorney fees to the prevailing party. |
| Property - Real and Personal / Colo. Rev. Stat. Ann. §38-38-102.5(2) | Notice of Default | At least 30 days prior to filing a notice of election and demand and at least 30 days after default, the holder of a residential mortgage loan must mail a notice addressed to the borrower at the address shown on its records. The notice must contain: (1) the telephone number of the Colorado Foreclosure Hotline; and (2) the direct telephone number of the holder's loss mitigation representative or department. |
| Property - Real and Personal / Colo. Rev. Stat. Ann. §38-38-101 | Notice of Election and Demand | A foreclosure under deed of trust with a power of sale may be initiated by filing with the public trustee of the county where the property is located a Notice of Election and Demand. See Colo. Rev. Stat. Ann. §38-38-101 for further details. |
| Property - Real and Personal / Colo. Rev. Stat. Ann. §38-38-104(1) | Notice of Intent to Cure | A default may be cured by filing with the public trustee, no later than 15 calendar days prior to the date of sale, a written notice of intent to cure together with evidence of the person's right to cure. |
| Colo. Rev. Stat. Ann. §38-38-302(1) | Notice of Intent to Redeem | A lien holder, with a lien subordinate to the foreclosed lien, who wishes to redeem the property following the foreclosure sale must file a notice of intent to redeem within 8 business days after the sale. The notice of intent to redeem may be filed later than 8 days if: (1) no lienor junior to the lienor seeking to file the late intent to redeem has redeemed; (2) the redemption period for the lienor seeking to file the late intent to redeem has not expired; (3) a redemption period has been created by the timely filing of a notice of intent to redeem; (4) the notice of intent to redeem is accompanied by a written authorization from the attorney for the holder of the certificate of purchase according to the records of the officer conducting the sale, or, if no attorney is shown, then the holder of the certificate of purchase, or, if a redemption has occurred, from the immediately prior redeeming lienor, or the attorney for the immediately prior redeeming lienor, authorizing the officer to accept such notice of intent to redeem. No sooner than 15 business days nor later than 19 business days after a foreclosure sale, the junior lien holder having the most senior recorded lien, having first complied with the notice of intent to redeem requirements, may redeem the property sold by paying the redemption price no later than 12 noon on the last day of the lien holder's redemption period. Each subsequent lien holder entitled to redeem will, in succession, have an additional period of 5 business days to redeem. |
| Colo. R. Civ. P. 105 | Notice of Lis Pendens - Judicial | (f) Lis Pendens. (1) Filing and Notice. A notice of lis pendens may be recorded as provided by statute. |
| Colo. Rev. Stat. Ann. §38-38-102.5(2) | Notice Prior to Residential Foreclosure - Non-Judicial | (2) At least thirty days before filing a notice of election and demand and at least thirty days after default, the holder shall mail a notice addressed to the original grantor of the deed of trust at the address in the recorded deed of trust or other lien being foreclosed and, if different, at the last address shown in the holder's records, containing: (a) The telephone number of the Colorado foreclosure hotline; (b) The direct telephone number of the holder's loss mitigation representative or department; and (c) A statement that, under section 6-1-1107, C.R.S., it is illegal for any person acting as a foreclosure consultant to charge an up-front fee or deposit to the borrower for services related to the foreclosure. |
| Property - Real and Personal / Colo. Rev. Stat. Ann. §38-38-113(1) | Notice of Rescission of Sale | If the foreclosing lender is the successful bidder at a foreclosure sale, then the lender may rescind the sale without obtaining a court order by filing with the public trustee, no later than 8 business days after the date of the sale, a notice of rescission of sale stating: (1) that the sale is being rescinded; (2) the number & date of the sale; (3) the name of the person to whom the certificate of purchase was issued; (4) the name of the assignee, if any; (5) the reception number or book and page number for the recorded certificate of purchase; & (6) legal description of the property foreclosed. |
| Property - Real and Personal / Colo. Rev. Stat. Ann. §38-40-103(1) | Notice of Transfer of Servicing | No more than 20 days after the date of transfer of the servicing or collection rights and duties to another person, the person transferring (transferor) the rights and duties must mail a notice to the borrower, notifying such borrower of the transfer and the name, address, and telephone number of the person who will be doing the servicing (transferee). |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-2-203 | Notification of Amount of Delinquency Charge | A lender who has imposed a delinquency charge must notify the borrower in writing of the amount of the delinquency charge assessed as follows: (1) before the due date of the next scheduled payment; or (2) if the lender provides the borrower with periodic statement for each installment, on or with the next periodic statement provided to the consumer after the delinquency charge has been assessed. |
| Uniform Consumer Credit Code / 4 Colo. Code Regs. §902-1, Rule 11 | Payoff Quote | A lender must deliver or mail a written payoff quote to a borrower within 5 business days after receipt of the borrower's written request. If so requested by the borrower, the quote may be made by electronic means or orally. A business day does not include a Saturday, Sunday, or legal holiday. No fee may be charged for a payoff quote. The payoff quote must include the date by which payment must be made for the payoff quote to be valid. |
| Property - Real and Personal / Colo. Rev. Stat. Ann. §38-35-124 | Release of Lien | A lender must, within 90 days after payment in full of a mortgage and after receipt from the borrower of reasonable costs for procuring and recording the release, record with the appropriate clerk and recorder the documents necessary to release or satisfy the lien of record or in the case of an indebtedness secured by a deed of trust to a public trustee, file with the public trustee the documents required for a release. |
| Uniform Consumer Credit Code / Colo. Rev. Stat. Ann. §5-3-104(3) | Release of Mortgage (Supervised Loan) | Within 30 days after a borrower has paid a mortgage loan in full, the lender must deliver or mail to the borrower written evidence acknowledging payment in full of the mortgage and written evidence of release of the mortgage. |
| Colo. Rev. Stat. Ann. §38-38-108(1) | Sale Date - Judicial | (1) Whenever property is to be sold following the foreclosure of any deed of trust or other lien by the officer, the initial date of sale shall be: (b) In the case of a sale of property by the sheriff that is not agricultural property, no less than one hundred ten calendar days after the date of the recording of the lis pendens; |
Summons and Complaint - Judicial | (h) Manner of Proof. Proof of service shall be made as follows: (1) If served personally, by a statement, certified by the sheriff, marshal or similar governmental official, or statement duly acknowledged under oath by any other person completing the service as to date, place, and manner of service; | |
| Property - Real and Personal / Colo. Rev. Stat. Ann. §38-40-103(2) | Written Requests | The servicer of a loan must respond in writing within 20 days from the receipt of a written request from the borrower for information about the borrower's loan, which is readily available from the servicer's books and records and which would not constitute the rendering of legal advice. Any such response must include the telephone number of the servicer. |