Colorado Foreclosures: Insights from a Law Firm Perspective

Colorado Foreclosures from the Law Firm Perspective By Holly Ryan, Esq., Deputy Treasurer Public Trustee

Discussion topics: Federal Regulatory Issues in Foreclosure Title Searches & Notification Requirements Rule 120 Proceedings Foreclosure & Bankruptcy Workouts & Deeds in Lieu of Foreclosure

Demand Letter Term of Deed of Trust Lender must send 30-day demand letter prior to referral to law firm. Multiple If Lender has not sent the 30-day demand letter, they can have the law firm send it. 30 hold. Law firm can t send 1stlegal to PT until 30 days has expired.

Deed of Trust Demand

Federal Regulatory Issues in Foreclosures The Fair Debt Collections Practices Act oFederal Act 15 USC 1692 801 Short Title oLaw firm may be deemed Debt Collector o30-day notice runs concurrent with PT foreclosure oColorado corollary

Congressional Findings (a) Abusive practices There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy. (b) Inadequacy of laws Existing laws and procedures for redressing these injuries are inadequate to protect consumers. (c) Available non-abusive collection methods Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts.

Congressional Declarations of Purpose (d) Interstate commerce Abusive debt collection practices are carried on to a substantial extent in interstate commerce and through means and instrumentalities of such commerce. Even where abusive debt collection practices are purely intrastate in character, they nevertheless directly affect Interstate commerce. (e) Purposes It is the purpose of this subchapter to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.

Colorado FDCPA The Colorado Fair Debt Collection Practices Act (CFDCPA) is a state law that governs the actions of debt collectors and collection agencies. It provides consumers with certain rights and restricts the practices collection agencies may use to attempt to collect debts. For example, the law prohibits collection agencies from using harassment, misleading, and unfair practices. The law prohibits unnecessary disclosure of the debt to parties not obligated to pay the debt. The law does not apply to creditors collecting their own debts.

Title & Notifications Title Products guarantees possible, no policies Title Updates, NED, Sale, Post Sale Notifications as required by law anyone with purported interest in the property - IRS

Deed of Trust Notices

Package to Public Trustee Documents NOTE/DOT/Loan Mods, etc. NED ML ACO SLS CertQH / Originals

Rule 120 Proceedings When is the complaint filed? Timeframes Posting notice and mailing notice Response Deadline - Defenses Order Authorizing Sale & Return of Sale Dismissal

R120 Defenses Active Military SCRA Not in Default Not the correct party in interest (wrong HOLDER) If case filed in County other than where the property is located, possible defense to move to County where property is located but must be raised in original response and be timely filed.

Foreclosure & Bankruptcy Bankruptcy filing Types and reasons Stay of the Foreclosure Relief from Stay, Dismissal and Closure of cases Last Possible Sale date

Workouts & Deeds in Lieu of Foreclosure What are workout plans? What is a Deed in Lieu of Foreclosure? Reasons for sale continuations

Q & A