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HB26-1098 • 2026

Public Trustee Act Foreclosure Procedures

The bill makes modifications related to foreclosure procedures in the 'Colorado Public Trustee Act' to: Set the salary of the public trustee in counties where the county treasurer serves as the public

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Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

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
2026-04-02
Official status
House Considered Senate Amendments - Result was to Concur - Repass
Effective date
Not listed

Plain English Breakdown

The candidate explanation included several claims not supported or only partially supported by the official source material, such as clarifying fund sources for salaries and removing oath requirements. These were removed in favor of verifiable content.

Colorado Public Trustee Act Foreclosure Changes

This bill modifies foreclosure procedures in Colorado by setting salaries for public trustees who are also county treasurers, removing certain requirements, and defining 'nonmaterial misstatement'.

What This Bill Does

  • Sets the salary of public trustees who serve as county treasurers to $12,500 per year.
  • Removes the requirement that public trustees appointed by the governor follow state procurement laws for purchases over $20,000 or multiple-year agreements.
  • Defines 'nonmaterial misstatement' in foreclosure documents.

Who It Names or Affects

  • Public trustees who are also county treasurers
  • People involved in foreclosure procedures

Terms To Know

Nonmaterial Misstatement
A minor error or omission that does not significantly affect the understanding, validity, or enforceability of a document.

Limits and Unknowns

  • The bill does not specify when it will take effect.
  • It is unclear how these changes will impact specific foreclosure cases.

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: The amendment changes the time period from six months to two years for when unclaimed overbids in foreclosure sales are considered abandoned and transferred to the state treasurer.

  • Changes 'six-month' to 'TWO-YEAR' on page 13, line 18.
  • Removes lines 26-27 of page 13.
  • Replaces lines 1-5 and 22-26 of page 14 with new text that extends the time period from six months to two years for transferring unclaimed overbids to the state treasurer.
  • Adds a new section on page 14, line 27, defining when an overbid is presumed abandoned after two years.
  • The amendment text does not provide details about how this change will affect existing foreclosure procedures or the responsibilities of public trustees and county treasurers beyond extending the time period for unclaimed overbids.
L.002

SEN Local Government & Housing

Passed [*]

Plain English: The amendment changes the language in the bill related to foreclosure procedures by modifying specific sections and removing certain parts of text.

  • Removes references to '(2)(d), and (3)' from a section, keeping only '(2)(a)'.
  • Replaces several lines with new text that outlines rights for 'omitted parties' in foreclosure proceedings.
  • Deletes the first six lines of page 17.
  • The exact impact and implications of these changes on foreclosure procedures are not fully explained by the amendment text alone.
L.003

Second Reading

Passed [**]

Plain English: The amendment modifies and adds new requirements for notices of intent to redeem in foreclosure procedures under the Colorado Public Trustee Act.

  • Adds a requirement that lienors attach original instruments or recorded copies, along with any assignments, when filing an intent to redeem notice.
  • Requires lienors to submit a detailed statement showing the amount needed to redeem their lien, including interest and costs.
  • Specifies that junior lienholders who are not qualified holders must provide receipts, invoices, and proof of fees and costs.
  • The amendment text does not specify what happens if the requirements are not met or how disputes over the accuracy of submitted documents will be resolved.
L.004

Second Reading

Passed [**]

Plain English: The amendment changes the Public Trustee Act to allow judgment creditors more time and specific requirements for filing an intent to redeem their lien before a foreclosure sale.

  • Adds that a judgment creditor must record their judgment as a lien at least fifteen calendar days before the date of sale in the office of the clerk and recorder.
  • Requires judgment creditors to file an intent to redeem pursuant to Section 38-38-302.
  • The amendment text does not specify what happens if a creditor fails to meet these new requirements.

Bill History

  1. 2026-04-02 House

    House Considered Senate Amendments - Result was to Concur - Repass

  2. 2026-03-25 House

    House Considered Senate Amendments - Result was to Laid Over Daily

  3. 2026-03-24 Senate

    Senate Third Reading Passed - No Amendments

  4. 2026-03-23 Senate

    Senate Second Reading Passed with Amendments - Committee, Floor

  5. 2026-03-18 Senate

    Senate Committee on Local Government & Housing Refer Amended - Consent Calendar to Senate Committee of the Whole

  6. 2026-03-06 Senate

    Introduced In Senate - Assigned to Local Government & Housing

  7. 2026-03-02 House

    House Third Reading Passed - No Amendments

  8. 2026-02-27 House

    House Third Reading Laid Over Daily - No Amendments

  9. 2026-02-26 House

    House Second Reading Special Order - Passed with Amendments - Committee

  10. 2026-02-24 House

    House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole

  11. 2026-02-03 House

    Introduced In House - Assigned to Transportation, Housing & Local Government

Official Summary Text

The bill makes modifications related to foreclosure procedures in the 'Colorado Public Trustee Act' to:
Set the salary of the public trustee in counties where the county treasurer serves as the public trustee;
Eliminate the requirement that a public trustee make certain statements 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';
Clarify the source of funds used to pay a public trustee;
Repeal the definition of 'certified copy' and references thereto;
Define 'nonmaterial misstatement';
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 unclaimed remaining amount for which a property is sold at a foreclosure sale that is in excess of the bid amount may be transferred to the state treasurer for disposition 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;
Clarify an omitted party's rights after a foreclosure sale; and
Specify when an omitted party's interest may be terminated.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Current Bill Text

Read the full stored bill text
HOUSE BILL 26-1098
BY REPRESENTATIVE(S) Brooks and Stewart R., Duran, Gonzalez R.,
Lindsay, Marshall, Richardson, Carter, McCluskie;
also SENATOR(S) Frizell and Kipp, Lindstedt, Coleman.
CONCERNING MODIFICATIONS TO THE "COLORADO PUBLIC TRUSTEE ACT"
RELATED TO FORECLOSURE PROCEDURES.

Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 38-37-104, amend (2)
and (3), and repeal (8) as follows:
38-37-104. Duties of public trustees - fees, expenses, and salaries
- reports - definition.

(2) (a) The salary of the public trustee in the different counties of the
state shall be fixed at the following amounts, to wit: In counties of the
second class, twenty-six thousand dollars per annum for full-time public
trustees and, in counties of the third class, six thousand five hundred dollars
per annum FOR PUBLIC TRUSTEES IN ALL COUNTIES WHEREIN THE COUNTY
TREASURER SERVES AS THE PUBLIC TRUSTEE, THE SALARY SHALL BE FIXED
AT TWELVE THOUSAND FIVE HUNDRED DOLLARS PER ANNUM.
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
(b) For public trustees whose terms begin on or after July 1, 1998,
but prior to January 1, 2003, the salary of the public trustee in the different
counties of the state shall be fixed at the following amounts, to wit: In
counties of the second class, thirty-two thousand dollars per annum for
full-time public trustees and, in counties of the third class, eight thousand
dollars per annum; except that, in the city and county of Broomfield, such
salary shall be as set forth in its annual budget.
(b.3) (I) For public trustees whose terms begin on or after January
1, 2003, except as otherwise provided in subparagraph (II), (III), or (IV) of
this paragraph (b.3), the salary of the public trustee in the different counties
of the state shall be fixed at the following amounts, to wit: In counties of the
second class, forty-eight thousand five hundred dollars per annum, and in
counties of the third class, twelve thousand five hundred dollars per annum.
(II) For public trustees who are serving in office on or after March
13, 2008, the salary of the public trustee in the different counties of the state
shall be fixed at the following amounts, to wit: In counties of the second
class, fifty-six thousand five hundred dollars per annum; and in counties of
the third class, twelve thousand five hundred dollars per annum.
(III) For public trustees in c ounties of the s econd class who are
serving in office on or after February 1, 2009, the salary shall be fixed at
sixty-four thousand five hundred dollars per annum.
(IV) For public trustees in counties of the second class who are
serving in office on or after February 1, 2010, the salary shall be fixed at
seventy-two thousand five hundred dollars per annum.
(V) For public trustees in counties of the second class wherein the
county treasurer serves as the public trustee, the salary shall be fixed at
twelve thousand five hundred dollars per annum.
(b.5) Repealed.
(c) Such salaries shall be paid MONTHLY FROM THE GENERAL FUND
AS PART OF THE COUNTY'S STANDARD PAYROLL PROCESS. ON A QUARTERLY
BASIS, THE PUBLIC TRUSTEE SHALL REIMBURSE THE COUNTY GENERAL FUND
FOR THE MONTHLY SALARIES from the fees collected by the public trustee
PAGE 2-HOUSE BILL 26-1098
as provided in this section and not otherwise OR FROM THE PUBLIC TRUSTEE
SPECIAL RESERVE ACCOUNT . IF THERE ARE NOT SUFFICIENT FUNDS
AVAILABLE, THEN THE PUBLIC TRUSTEE SHALL REIMBURSE THE GENERAL
FUND ACCOUNT AS SOON AS ENOUGH FEES HAVE BEEN COLLECTED.
(3) The public trustee of each county shall quarterly make and file
with the board of county commissioners of the county a full and complete
statement under oath of all transactions of the office of the public trustee
and shall, upon the approval of said report, pay to the county treasurer all
sums that the public trustee has received as fees in excess of the amount of
salary then due to the public trustee and in excess of all necessary and
reasonable expenses for staff wages and any benefits provided pursuant to
county personnel policy and other expenses incidental to the conduct of the
office of the public trustee for the quarter ending at the time of such report,
which moneys MONEY shall, by the county treasurer, be placed to the credit
of a fund to be known as the public trustee salary fund. The public trustee
shall, before remitting such excess funds, retain such excess funds in a
special reserve fund, which fund shall be maintained in a separate
interest-bearing account as permitted under section 38-37-113, until such
special reserve fund, including accrued interest, reaches an amount equal to
the public trustee's total operating expenses and authorized salary for the
previous fiscal year, as filed pursuant to this subsection (3). If, in any
particular quarter, the public trustee's operating expenses and authorized
salary exceed the fees collected in the quarter, the public trustee may draw
on the special reserve fund to cover the public trustee's operating expenses
and authorized salary for that quarter. At such time as the special reserve
fund has reached the permitted amount, excess funds shall be paid to the
county treasurer to be placed in the public trustee salary fund. At the
expiration of each year, the county treasurer shall, out of any moneys
MONEY in the public trustee salary fund and not otherwise, pay to the public
trustee such an amount, if any, as may be still due to the public trustee on
account of the public trustee's salary for that year just expired, such payment
to be made only upon the certificate of the board stating the amount of such
salary still remaining due and unpaid, and the balance of said fund shall
thereupon be transferred to the general fund of the county.
(8) Each public trustee who is appointed by the governor shall be
subject to the state "Procurement Code", articles 101 to 112 of title 24,
C.R.S., for any purchase of twenty thousand dollars or more and for any
multiple year purchase agreement; except that, if the procurement rules
PAGE 3-HOUSE BILL 26-1098
established for the county in which the public trustee serves require an open
and competitive bidding process, the public trustee may apply the county
procurement rules.
SECTION 2. In Colorado Revised Statutes, 38-38-100.3, repeal
(3); and add (15.5) as follows:
38-38-100.3. Definitions.
As used in articles 37 to 39 of this title 38, unless the context
otherwise requires:
(3) "Certified copy" means, with respect to a recorded document, a
copy of the document certified by the clerk and recorder of the county
where the document was recorded.
(15.5) "N ONMATERIAL MISSTATEMENT " MEANS AN ERROR ,
INACCURACY, OR OMISSION THAT IS MINOR OR INCONSEQUENTIAL AND DOES
NOT SIGNIFICANTLY AFFECT THE UNDERSTANDING , VALIDITY , OR
ENFORCEABILITY OF THE DOCUMENT.
SECTION 3. In Colorado Revised Statutes, 38-38-101, amend
(1)(b)(III), (1)(c)(I), (2), and (5) as follows:
38-38-101. Holder of evidence of debt may elect to foreclose.
(1) Documents required. Whenever a holder of an evidence of debt
declares a violation of a covenant of a deed of trust and elects to publish all
or a portion of the property therein described for sale, the holder or the
attorney for the holder shall file the following with the public trustee of the
county where the property is located:
(b) The original evidence of debt, including any modifications to the
original evidence of debt, together with the original indorsement or
assignment thereof, if any, to the holder of the evidence of debt or other
proper indorsement or assignment in accordance with subsection (6) of this
section or, in lieu of the original evidence of debt, one of the following:
(III) A certified RECORDED copy of a monetary judgment entered by
a court of competent jurisdiction;
PAGE 4-HOUSE BILL 26-1098
(c) The original recorded deed of trust securing the evidence of debt
and any original recorded modifications of the deed of trust or any recorded
partial releases of the deed of trust, or in lieu thereof, one of the following:
(I) Certified Copies of the recorded deed of trust and any recorded
modifications of the deed of trust or recorded partial releases of the deed of
trust; or
(2) Foreclosure by qualified holder without original evidence of
debt, original or recorded copy of deed of trust, or proper indorsement.
(a) A qualified holder, whether acting for itself or as agent,
nominee, or trustee under section 38-38-100.3 (20), that elects to foreclose
without the original evidence of debt pursuant to subparagraph (II) of
paragraph (b) of subsection (1) SUBSECTION (1)(b)(II) of this section, or
without the original recorded deed of trust or a certified RECORDED copy
thereof pursuant to subparagraph (II) of paragraph (c) of subsection (1)
SUBSECTION (1)(c)(II) of this section, or without the proper indorsement or
assignment of an evidence of debt under paragraph (b) of subsection (1)
SUBSECTION (1)(b) of this section shall, by operation of law, be deemed to
have agreed to indemnify and defend any person liable for repayment of any
portion of the original evidence of debt in the event that the original
evidence of debt is presented for payment to the extent of any amount, other
than the amount of a deficiency remaining under the evidence of debt after
deducting the amount bid at sale, and any person who sustains a loss due to
any title defect that results from reliance upon a sale at which the original
evidence of debt was not presented. The indemnity granted by this
subsection (2) shall be IS limited to actual economic loss suffered together
with any court costs and reasonable attorney fees and costs incurred in
defending a claim brought as a direct and proximate cause of the failure to
produce the original evidence of debt, but such indemnity shall not include,
and no claimant shall be IS entitled to, any special, incidental, consequential,
reliance, expectation, or punitive damages of any kind. A qualified holder
acting as agent, nominee, or trustee shall be IS liable for the indemnity
pursuant to this subsection (2).
(b) In the event that a qualified holder or the attorney for the holder
commences a foreclosure without production of the original evidence of
debt, COPY OF RECORDED MODIFICATION, proper indorsement or assignment,
or the original recorded deed of trust or a certified RECORDED copy thereof,
PAGE 5-HOUSE BILL 26-1098
the qualified holder or the attorney for the holder may submit the original
evidence of debt, COPY OF RECORDED MODIFICATION, proper indorsement
or assignment, or the original recorded deed of trust or a certified
RECORDED copy thereof to the officer prior to the sale. In such event, the
sale shall be IS conducted and administered as if the original evidence of
debt, COPY OF RECORDED MODIFICATION, proper indorsement or assignment,
or the original recorded deed of trust or a certified RECORDED copy thereof
had been submitted at the time of commencement of such proceeding, and
any indemnities deemed to have been given by the qualified holder under
paragraph (a) of this subsection (2) SUBSECTION (2)(a) OF THIS SECTION
shall be null and ARE void as to the instrument produced under this
paragraph (b) SUBSECTION (2)(b).
(c) In the event that a foreclosure is conducted where the original
evidence of debt, proper indorsement or assignment, or original recorded
deed of trust or certified RECORDED copy thereof has not been produced, the
only claims shall be ARE against the indemnitor as provided in paragraph (a)
of this subsection (2) SUBSECTION (2)(a) OF THIS SECTION and not against
the foreclosed property or the attorney for the holder of the evidence of
debt. Nothing in this section shall preclude PRECLUDES a person liable for
repayment of the evidence of debt from pursuing remedies allowed by law.
(5) Error in notice. In the event that the amount of the outstanding
principal balance due and owing upon the secured indebtedness OR ANY
NONMATERIAL MISSTATEMENT is erroneously set forth in the notice of
election and demand or the combined notice, the error shall not affect the
validity of the notice of election and demand, the combined notice, the
publication, the sale, the certificate of purchase described in section
38-38-401, the certificate of redemption described in section 38-38-402, the
confirmation deed as defined in section 38-38-100.3 (5), or any other
document executed in connection therewith.
SECTION 4. In Colorado Revised Statutes, 38-38-103, amend
(2)(a) as follows:
38-38-103. Combined notice - publication - providing
information.
(2) (a) The holder of the evidence of debt or the attorney for the
holder shall deliver an amended mailing list to the officer as needed. If an
PAGE 6-HOUSE BILL 26-1098
OFFICER RECEIVES AN amended mailing list is received after the officer has
sent the mailing described in paragraph (b) of subsection (1) SUBSECTION
(1)(b) of this section, the officer shall continue the sale to no less than
sixty-five calendar days after receipt of the amended mailing list. The
officer shall send the notice pursuant to subsection (4) of this section to the
persons on the amended mailing list no less than forty-five calendar days
prior to the actual NEWLY SCHEDULED date of sale.
SECTION 5. In Colorado Revised Statutes, 38-38-104, amend
(1)(d) as follows:
38-38-104. Right to cure when default is nonpayment - right to
cure for certain technical defaults.
(1) Unless the order authorizing the sale described in section
38-38-105 contains a determination that there is a reasonable probability
that a default in the terms of the evidence of debt, deed of trust, or other lien
being foreclosed other than nonpayment of sums due thereunder has
occurred, any of the following persons is entitled to cure the default if the
person files with the officer, no later than fifteen 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 to the satisfaction of the officer:
(d) A holder of an interest junior to the lien being foreclosed by
virtue of being a lienor or lessee of, or a holder of an easement or license
on, the property or a contract vendee of the property, if the instrument
evidencing the interest was recorded in the records prior to the date and
time of the recording of the notice of election and demand or lis pendens.
A JUNIOR LIENOR, AS DEFINED IN SECTION 38-38-100.3. If, prior to the date
and time of the recording of the notice of election and demand or lis
pendens, a lien is recorded in an incorrect county, the holder's rights under
this section shall ARE only be valid if the lien is rerecorded in the correct
county at least fifteen calendar days prior to the actual date of sale.
SECTION 6. In Colorado Revised Statutes, 38-38-106, amend
(7)(a)(II) as follows:
38-38-106. Bid required - form of bid.
(7) (a) (II) If the holder of the evidence of debt is the highest bidder
PAGE 7-HOUSE BILL 26-1098
with a bid that exceeds the total amount due shown on the bid pursuant to
subsection (2) of this section, the holder of the evidence of debt is only
required to pay the excess of the amount bid over the amount due the holder
of the evidence of debt, as shown on the bid submitted pursuant to
subsection (2) of this section. THE HOLDER SHALL PAY THE EXCESS OF THE
AMOUNT BID TO THE OFFICE WITHIN THREE BUSINESS DAYS AFTER THE SALE.
SECTION 7. In Colorado Revised Statutes, 38-38-108, amend
(2)(a)(I)(A) as follows:
38-38-108. Date of sale.
(2) (a) (I) If it is not evident from the legal description contained in
the deed of trust or other lien being foreclosed whether the property
described therein is agricultural property, the officer shall make that
determination no less than ten calendar days nor more than twenty calendar
days after the recording of the notice of election and demand; except that
the officer may make the determination at any earlier time upon
presentation of acceptable evidence that the property is not agricultural
property. The officer shall accept the following as evidence that the
property is not agricultural property:
(A) A certified copy of the subdivision plat containing the property
or any portion thereof recorded in the office of the clerk and recorder of the
county where the property or any portion thereof is located; or
SECTION 8. In Colorado Revised Statutes, 38-38-109, amend
(1)(b) and (2)(a) as follows:
38-38-109. Continuance of sale - effect of bankruptcy -
withdrawal of sale.
(1) Continuance.
(b) At the request of the holder of the evidence of debt or the
attorney for the holder or upon the officer's own initiative, the officer shall
correct any errors in a published combined notice and shall continue the
then-scheduled date of sale to a future date within the period of continuance
allowed by paragraph (a) of this subsection (1) SUBSECTION (1)(a) OF THIS
SECTION to permit a corrected combined notice to be published or the
PAGE 8-HOUSE BILL 26-1098
original combined notice to be republished pursuant to section 38-38-103
(5). If the officer failed to publish the combined notice as required by
section 38-38-103 (5), the officer shall continue the then-scheduled date of
sale to a future date within the period of continuance allowed by paragraph
(a) of this subsection (1) SUBSECTION (1)(a) OF THIS SECTION. The future
date of sale to which the sale is continued pursuant to this paragraph (b)
SUBSECTION (1)(b) shall be no later than thirty calendar days after the fifth
publication of the corrected combined notice or republished combined
notice. The officer shall mail a copy of the combined notice, or corrected
combined notice if the original combined notice was erroneous, to the
persons and addresses on the most recent amended mailing list no later than
ten calendar days after the first correct publication or republication and no
less than forty-five calendar days prior to the actual NEWLY SCHEDULED date
of sale in the same manner as set forth in section 38-38-103. If there is no
amended mailing list, the officer shall mail a copy of the combined notice,
or corrected combined notice if the original combined notice was erroneous,
to the persons as set forth in the mailing list.
(2) Effect of bankruptcy proceedings.
(a) If all publications of the combined notice prescribed by section
38-38-103 (5) or 13-56-201 (1) C.R.S., have been completed before a ANY
INJUNCTION OR bankruptcy petition has been filed that automatically stays
the officer from conducting the sale, the officer shall announce, post, or
provide notice of that fact on the then-scheduled date of sale, take no action
at the then-scheduled sale, and allow the sale to be automatically continued
from week to week in accordance with paragraph (a) of subsection (1)
SUBSECTION (1)(a) of this section, unless otherwise requested in writing
prior to any such date of sale by the holder of the evidence of debt or the
attorney for the holder.
SECTION 9. In Colorado Revised Statutes, 38-38-111, amend
(3)(a)(II) and (3)(b) as follows:
38-38-111. Treatment of an overbid - agreements to assist in
recovery of overbid prohibited - penalty - definition.
(3) (a) (II) When the property is sold by the public trustee, any
unclaimed remaining overbid from a foreclosure sale shall be IS held by the
public trustee in escrow. The remaining overbid shall be IS held for six
PAGE 9-HOUSE BILL 26-1098
months from the date of the sale. The public trustee is answerable for the
funds without interest at any time within the six-month TWO-YEAR period
to any person legally entitled to the funds. Any interest earned on the
escrowed funds must be paid to the county at least annually. Unclaimed
remaining overbids that are less than twenty-five dollars and that are not
claimed within six months from the date of sale must be paid to the general
fund of the county, and such money paid to the general fund of the county
becomes the property of the county. Unclaimed remaining overbids that are
equal to or greater than twenty-five dollars and that are not claimed within
six months TWO YEARS from the date of the sale are unclaimed property for
purposes of the "Revised Uniform Unclaimed Property Act", article 13 of
this title 38, and must be transferred to the administrator in accordance with
article 13 SHALL BE TRANSFERRED TO THE STATE TREASURER FOR
DISPOSITION IN ACCORDANCE WITH THE "REVISED UNIFORM UNCLAIMED
PROPERTY ACT", ARTICLE 13 OF THIS TITLE 38. After unclaimed remaining
overbids are transferred to the administrator or to the general fund of the
county, the public trustee is discharged from any further liability or
responsibility for the money.
(b) If the unclaimed remaining overbids exceed five hundred dollars
and have not been claimed by any person entitled thereto within sixty
calendar days after the expiration of all redemption periods as provided by
section 38-38-302, the public trustee shall, within ninety calendar days after
the expiration of all redemption periods, commence publication of a notice
for four weeks, which means publication once each week for five
successive weeks, in a newspaper of general circulation in the county where
the subject property is located. The notice must contain the name of the
borrower, the borrower's address as given in the recorded instrument
evidencing the borrower's interest, and the legal description and street
address, if any, of the property sold at the sale and must state that an overbid
was realized from the sale and that, unless the funds are claimed by the
borrower or other person entitled thereto within six months after TWO
YEARS FROM the date of sale, the funds shall be transferred to the state
treasurer for disposition in accordance with the "Revised Uniform
Unclaimed Property Act", article 13 of this title 38. The public trustee shall
also mail a copy of the notice to the borrower at the best available address.
SECTION 10. In Colorado Revised Statutes, amend 38-13-214 as
follows:
PAGE 10-HOUSE BILL 26-1098
38-13-214. Foreclosure sale - overbid.
Any overbid, as defined in section 38-38-100.3, that is equal to or
greater than twenty-five dollars and that remains unclaimed for six months
TWO YEARS after the date of sale is presumed abandoned.
SECTION 11. In Colorado Revised Statutes, 38-38-302, amend
(1)(e) and (1)(f); and add (1)(c.5) as follows:
38-38-302. Redemption by lienor - procedure - definition.
(1) Requirements for redemption. A lienor or assignee of a lien
is entitled to redeem if the following requirements are met to the
satisfaction of the officer:
(c.5) I F A LIEN IS ASSIGNED , THE HOLDER 'S RIGHTS UNDER THIS
SECTION ARE VALID ONLY IF THE ASSIGNMENT OF THE LIEN IS DULY
RECORDED IN THE OFFICE OF THE CLERK AND RECORDER OF THE COUNTY AT
LEAST FIFTEEN CALENDAR DAYS PRIOR TO THE ACTUAL DATE OF SALE.
(e) The lienor has attached to the notice of intent to redeem the
original instrument and any assignment of the lien to the person attempting
to redeem, or certified RECORDED copies thereof, or in the case of a
qualified holder, a copy of the instrument evidencing the lien and any
assignment of the lien to the person attempting to redeem. If the original
instrument is delivered to the officer, the officer shall return the instrument
to the lienor and retain a copy.
(f) The lienor has attached to the notice of intent to redeem a signed
and properly acknowledged statement of the lienor, or a signed statement
by the lienor's attorney, setting forth the amount required to redeem the
lienor's lien, including per diem interest, through the end of the nineteenth
business day after the sale with the same specificity and itemization as
required in section 38-38-106. A JUNIOR LIENOR THAT IS NOT A QUALIFIED
HOLDER SHALL ALSO SUBMIT TO THE OFFICER RECEIPTS , INVOICES , AND
PROOF OF FEES AND COSTS AND VERIFY THAT ALL FEES AND COSTS ARE
REASONABLE AND WERE ACTUALLY INCURRED AS OF THE DATE OF THE
FILING OF THE INTENT TO REDEEM. If the amount required to redeem the
lienor's lien shown on the statement is zero, the lienor has no right to
redeem unless section 38-38-305 applies.
PAGE 11-HOUSE BILL 26-1098
SECTION 12. In Colorado Revised Statutes, 38-38-306, amend (1)
as follows:
38-38-306. Rights of other lienors to redeem - definition.
(1) A judgment creditor whose judgment has been made a lien of
record BY BEING DULY RECORDED IN THE OFFICE OF THE CLERK AND
RECORDER OF THE COUNTY AT LEAST FIFTEEN CALENDAR DAYS PRIOR TO THE
ACTUAL DATE OF SALE and who has complied with the other conditions of
a lienor required by this article BY DULY FILING AN INTENT TO REDEEM
PURSUANT TO SECTION 38-38-302 may redeem as a lienor.
SECTION 13. In Colorado Revised Statutes, amend 38-38-405 as
follows:
38-38-405. Certificate as prima facie evidence.
A certificate of purchase, certificate of redemption, confirmation
deed, or a certified RECORDED copy thereof shall be deemed to be prima
facie evidence of all statements or recitals contained therein.
SECTION 14. In Colorado Revised Statutes, 38-38-506, amend
(2)(a) as follows:
38-38-506. Omitted parties - definitions.
(2) (a) The interest of an omitted party in the property that is the
subject of a sale may be terminated if the omitted party, or anyone claiming
by, through, or under an omitted party, in a civil action commenced at any
time by any interested person as defined in paragraph (c) of this subsection
(2) SUBSECTION (2)(c) OF THIS SECTION, by an omitted party, or by anyone
claiming by, through, or under an omitted party, is afforded rights of cure
if the omitted party would have been entitled to cure pursuant to section
38-38-104, or is afforded redemption rights if the omitted party would have
been entitled to redeem pursuant to section 38-38-302, upon such terms as
the court may deem equitable under the circumstances, which terms shall
not, however, be more favorable than the person's statutory rights. The court
shall give full consideration to whether the omitted party or anyone
claiming by, through, or under an omitted party was given or had actual
notice or knowledge of the foreclosure and was given an opportunity to
PAGE 12-HOUSE BILL 26-1098
exercise statutory rights to cure or redeem.
SECTION 15. In Colorado Revised Statutes, 38-39-102, amend
(1)(b) as follows:
38-39-102. When deed of trust shall be released - definitions.
(1) (b) Immediately Upon execution of the release of the deed of
trust by the public trustee, the public trustee shall cause, AS SOON AS
PRACTICABLE, the release to be recorded in the records of the county clerk
and recorder.
SECTION 16. Effective date. This act takes effect July 1, 2026.
SECTION 17. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
PAGE 13-HOUSE BILL 26-1098
preservation of the public peace, health, or safety or for appropriations for
the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
Julie McCluskie James Rashad Coleman, Sr.
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Vanessa Reilly Esther van Mourik
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 14-HOUSE BILL 26-1098