August 1, 2014
by Caren Castle
The Castle Law Group, LLC – USFN Member (Colorado, Wyoming)
Colorado passed House Bill 1130 “Concerning the Disposition of Moneys Charged to Borrowers for Costs to be Paid in Connection with Foreclosure” effective for all foreclosures filed on or after May 9, 2014. Colorado law now requires that the cure statement from the public trustee must include the statutory specific language notifying the requesting party that they are entitled to receive copies of receipts or other credible evidence to support the costs claimed on the cure statement. The request may be sent only after payment to the public trustee of the amount shown on the cure statement.
If an “inaccuracy” in the cure statement is identified by the servicer for the holder, the holder or the attorney must immediately give notice to the public trustee, identifying the inaccuracy and providing an updated cure statement. The updated cure statement must be provided at least ten days prior to the effective date of the cure statement (good-thru date); the public trustee may postpone the sale for one week. Estimates continue to be allowed under Colorado law and must be identified as such on the cure statement to the public trustee. Estimates do not constitute an “inaccurate” statement in accordance with HB 1130.
Within seven business days after the public trustee notifies the firm that cure funds have been received, the firm must provide to the public trustee a “final cure statement” reconciling all estimated amounts so that the cure statement only includes actual amounts incurred to the date that the funds were received. The firm must also include receipts or invoices for all Rule 120 docket costs and all statutorily mandated posting costs claimed on the cure statement. The public trustee will only remit the amount to the holder as set forth in the final cure statement; any remaining balance will be refunded to the party that paid the cure amount. The funds will not be released by the public trustee until the final cure statement and required receipts/invoices have been received by the public trustee.
The servicer/holder/attorney are responsible for retaining receipts or other credible evidence to support all costs claimed. The person paying the cure will be entitled to copies of the evidence if requested within 90 days of the cure. The firm or servicer will have 30 days from the date of the request to provide evidence in support of such costs. The supporting evidence may be provided by electronic means or otherwise.
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