HB26-1098 • 2026

Public Trustee Act Foreclosure Procedures

The act modifies the 'Colorado Public Trustee Act' to: Set the salary of the public trustee in counties where the county treasurer serves as the public trustee to a fixed amount of $12,500 annually to

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Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Rep. M. Brooks, Rep. R. Stewart, Sen. L. Frizell, Sen. C. Kipp, Rep. M. Carter, Rep. M. Duran, Rep. R. Gonzalez, Rep. M. Lindsay, Rep. B. Marshall, Rep. J. McCluskie, Rep. C. Richardson, Sen. J. Coleman, Sen. W. Lindstedt
Last action: 2026-05-04
Official status: Governor Signed
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Colorado Public Trustee Act Foreclosure Procedures

This law sets a fixed annual salary for public trustees in some counties, removes certain reporting and purchasing rules, clarifies foreclosure notice deadlines, defines how to handle document errors, and updates rules about unclaimed money from sales.

What This Bill Does

Sets the annual salary at $12,500 for county treasurers who also serve as public trustee, paid monthly from the county general fund.
Requires the public trustee to reimburse the county for these salaries using fees collected or funds from a special reserve account every three months.
Removes the rule requiring a sworn full statement of all office transactions to be filed with county commissioners.
Repeals the requirement that governor-appointed trustees follow state procurement rules for purchases over $20,000.
Defines 'nonmaterial misstatement' as a minor error or omission that does not significantly affect a document's meaning or validity.
Clarifies deadlines for mailing foreclosure sale notices to people on an updated list.
States that junior lien holders can fix defaults if they file with the officer conducting the sale.
Requires unclaimed money from sales exceeding the bid amount to go to the state treasurer or be held by county treasurers under local rules.
Adds a rule stating that assigned liens are valid for redemption only if recorded at least 15 days before the sale date.
Specifies conditions under which an omitted party's interest in a property may end.

Who It Names or Affects

County treasurers who serve as public trustees
Public trustees appointed by the governor
People involved in foreclosure proceedings, including junior lien holders and property owners

Terms To Know

Junior lienor: A person or group with a claim on a property that comes after the main loan.
Nonmaterial misstatement: A minor error, inaccuracy, or omission that does not significantly affect how a document is understood or enforced.

Limits and Unknowns

The official source text provided does not list the specific effective date of this law.
Details on how counties handle unclaimed funds depend on local resolutions passed by each county.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

HOU Transportation, Housing & Local Government

Passed [*]

Plain English: This amendment changes the time limit for unclaimed money from foreclosure sales to stay with local officials before being sent to the state treasurer, extending it from six months to two years.

Unclaimed overbids must now remain in a county's possession for two years instead of just six months after a sale date.
Money that is not claimed within this new two-year period will be transferred to the state treasurer as unclaimed property.
The law defining when an overbid is considered abandoned has been updated to match this longer two-year waiting period.

The amendment text contains conflicting instructions where both 'six months' and 'two years' appear in the same lines, making it unclear which time frame was intended for every specific section without further legal review.
It is not clear from this text alone if other parts of the bill regarding public trustee salaries were also changed by this amendment.

L.002

SEN Local Government & Housing

Passed [*]

Plain English: This amendment changes the rules for people who were accidentally left out of a foreclosure case by giving them specific chances to fix their debt or buy back their property under court-approved terms.

It updates which parts of the law apply when someone was missed during a foreclosure process.
People who were not included in the original lawsuit can ask for 'cure' rights (to pay off what they owe) if the law would have allowed them to do so before being left out.
These people can also ask for 'redemption' rights (to buy back their property after foreclosure) based on existing state laws.
A judge will decide fair terms for these requests, but those terms cannot be better than what the person's normal legal rights would have been.

The amendment text does not explain exactly how a court decides if someone had 'actual notice' or knowledge of the foreclosure.
It is unclear from this short excerpt whether these new rules apply to foreclosures that happened in the past or only future cases.

L.003

Second Reading

Passed [**]

Plain English: This amendment adds new rules requiring people who want to stop a foreclosure sale by paying off their debt (redeeming) to provide specific documents and proof of costs.

The person trying to redeem the property must attach the original loan document or certified copies showing they own the lien.
If an original document is handed over, the officer will give it back to the lender but keep a copy for their records.
A signed statement listing the exact amount needed to pay off the debt, including daily interest until 19 business days after the sale date, must be included.
Junior lenders who are not qualified holders must also provide receipts and invoices proving that all fees listed were actually spent.

The amendment text does not define what a 'qualified holder' or 'junior lienor' is, so the exact rules for those specific groups depend on other parts of the law.
The full details about how to calculate interest and fees are found in another section (38-38-106) that is not included here.

L.004

Second Reading

Passed [**]

Plain English: This amendment changes the rules for when someone with a legal debt claim can pay off that debt to stop a foreclosure sale.

A person who has recorded their judgment as an official lien must do so at least fifteen calendar days before the actual date of the property sale.

The amendment text is incomplete because it cuts off mid-sentence regarding other conditions required to redeem, making a full explanation impossible.
It is unclear exactly how this change affects people who recorded their liens less than fifteen days before the sale date.

Bill History

2026-05-04 Governor
Governor Signed
2026-04-23 Governor
Sent to the Governor
2026-04-22 Senate
Signed by the President of the Senate
2026-04-22 House
Signed by the Speaker of the House
2026-04-02 House
House Considered Senate Amendments - Result was to Concur - Repass
2026-03-25 House
House Considered Senate Amendments - Result was to Laid Over Daily
2026-03-24 Senate
Senate Third Reading Passed - No Amendments
2026-03-23 Senate
Senate Second Reading Passed with Amendments - Committee, Floor
2026-03-18 Senate
Senate Committee on Local Government & Housing Refer Amended - Consent Calendar to Senate Committee of the Whole
2026-03-06 Senate
Introduced In Senate - Assigned to Local Government & Housing
2026-03-02 House
House Third Reading Passed - No Amendments
2026-02-27 House
House Third Reading Laid Over Daily - No Amendments
2026-02-26 House
House Second Reading Special Order - Passed with Amendments - Committee
2026-02-24 House
House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole
2026-02-03 House
Introduced In House - Assigned to Transportation, Housing & Local Government

Official Summary Text

The act modifies the 'Colorado Public Trustee Act' to:
Set the salary of the public trustee in counties where the county treasurer serves as the public trustee to a fixed amount of $12,500 annually to be paid monthly from the county general fund as part of the county's standard payroll process. On a quarterly basis, the public trustee is required to reimburse the county general fund for the monthly salaries from the fees collected by the public trustee or from the public trustee special reserve account.
Eliminate the requirement that a public trustee make and file a full statement of all transactions of the office of the public trustee to the board of county commissioners under oath;
Repeal the requirement that a public trustee appointed by the governor be subject to the state 'Procurement Code' for any purchase of more than $20,000;
Repeal the definition of 'certified copy' and references thereto;
Define 'nonmaterial misstatement' as a minor or inconsequential error, inaccuracy, or omission that does not significantly affect the understanding, validity, or enforceability of a document;
Clarify the date by which the public trustee or sheriff conducting a foreclosure (officer) must mail the combined notice of sale, right to cure, and right to redeem to persons on an amended mailing list;
Clarify that a junior lienor is entitled to cure the default if the junior lienor files with the officer;
Specify that an unclaimed remaining amount for which a property is sold at a foreclosure sale that is in excess of the bid amount must either be transferred to the state treasurer for disposition in accordance with the 'Revised Uniform Unclaimed Property Act' or held by the county treasurer pursuant to the terms of a county resolution regarding unclaimed funds;
Add a requirement regarding redemption that specifies that if a lien is assigned, the holder's rights are valid only if the assignment of the lien is duly recorded at least 15 calendar days prior to the date of sale; and
Specify the conditions under which an omitted party's interest may be terminated.
(Note: This summary applies to this bill as enacted.)