ColoradoHB26-10982026 Regular SessionHouse

Public Trustee Act Foreclosure Procedures

Sponsored By: Cathy Kipp (Democratic), Lisa Frizell (Republican), Max Brooks (Republican), Rebekah Stewart (Democratic)

Signed by Governor

Civil LawLocal Government

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 3 costs, 3 mixed.

More foreclosure notice after mailing changes

When an amended mailing list arrives after the first foreclosure mailing, the officer must reschedule the sale. The new sale must be at least 65 calendar days after the officer receives that list. People on the amended list must be sent notice at least 45 calendar days before the new sale.

More time to claim foreclosure money

Eligible claimants have two years after a foreclosure sale to claim unclaimed overbids of $25 or more from the trustee. An overbid is extra money from the sale. After two years, unclaimed amounts of $25 or more transfer to the Colorado State Treasurer under unclaimed-property law. Unclaimed amounts under $25 go to the county general fund after six months. For amounts above $500, the trustee must publish and mail notice if money remains unclaimed 60 calendar days after all redemption periods end. That notice must explain the transfer two years after the sale.

Homeowners' mortgage releases get flexible timing

Beginning July 1, 2026, public trustees must record a deed of trust release as soon as practicable after signing it. The law replaces the requirement to record it immediately. This allows more time before the public record shows the release.

Lienholders face firm foreclosure rights deadlines

A person receiving a lien through assignment can redeem property after foreclosure only if the assignment was properly recorded. Recording with the county clerk and recorder must occur at least 15 calendar days before the actual sale. Parties seeking to cure nonpayment must prove their right and file written intent at least 15 calendar days before sale. A lien recorded in the wrong county before the foreclosure notice or lawsuit notice must be rerecorded in the correct county. That correction must occur at least 15 calendar days before sale to preserve cure rights.

Minor notice errors cannot overturn foreclosures

Errors in the outstanding principal amount or qualifying minor notice errors do not invalidate a foreclosure notice, publication, or sale. They also do not invalidate the related deed or sale certificate. A qualifying minor error is an error, inaccuracy, or omission that does not significantly affect understanding, validity, or enforceability. Homeowners cannot overturn these steps based on those errors alone.

Easier foreclosure paperwork with limited protections

Qualified holders or their lawyers can use recorded copies of specified foreclosure papers instead of certified copies as initial legal proof. The law also removes the prior definition of certified copy. A recorded monetary judgment can allow foreclosure to start without the original debt document or original recorded deed of trust. Holders proceeding without required documents must cover actual economic losses and reasonable defense costs for people liable on the debt. This protection excludes punitive and incidental damages; claims are only against the holder responsible, not the property or lawyer. To receive the stated document treatment, missing papers must reach the officer before sale; producing an instrument before sale voids its missing-document indemnity.

Omitted property interests get limited remedies

Actions about an omitted party's interest have a deadline: the later of 365 calendar days after recording the foreclosure notice or 180 calendar days after the actual sale. Courts can grant redemption rights, but not cure rights, and must consider the party's notice and chance to act. Redemption terms must be fair and no more favorable than the party's statutory rights. A person with an interest can timely file a document affirming the omitted interest, preserving it without granting cure or redemption rights. An omitted interest can be extinguished only through the statutory procedures or a written waiver or agreement.

Fixed trustee pay and county funding

Public trustees receive $12,500 a year in counties where the county treasurer also serves as trustee. Counties pay trustee salaries monthly through regular payroll, and trustees repay the county quarterly from fees or reserves. If funds are short, repayment waits until enough fees are collected. Trustees keep excess fees in a separate, interest-bearing reserve until it equals the prior fiscal year's operating expenses plus authorized salary. The reserve can cover quarterly shortfalls; further excess fees go to the county treasurer's public trustee salary fund. After year-end payment of salary still due, approved through the county board's certificate, remaining balances enter the county general fund. Governor-appointed trustees are no longer subject to the State Procurement Code.

Sponsors & Cosponsors

Cosponsors

Bob Marshall
Democratic • House
Chris Richardson
Republican • House
Julie McCluskie
Democratic • House
Michael Carter
Democratic • House
Monica Duran
Democratic • House
Mandy Lindsay
Democratic • House
Ryan Gonzalez
Republican • House
James Coleman
Democratic • Senate
William Lindstedt
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 242 • No: 0

House vote • 4/2/2026

Senate amendments: Repass

Yes: 62 • No: 0

House vote • 4/2/2026

Senate amendments: Concur

Yes: 61 • No: 0

Senate vote • 3/24/2026

Third reading: Bill

Yes: 34 • No: 0

Senate vote • 3/18/2026

Refer House Bill 26-1098, as amended, to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.

Yes: 7 • No: 0

House vote • 3/2/2026

Third reading: Bill

Yes: 65 • No: 0

House vote • 2/24/2026

Refer House Bill 26-1098, as amended, to the Committee of the Whole.

Yes: 13 • No: 0

Actions Timeline

Governor Signed
5/4/2026House
Sent to the Governor
4/23/2026House
Signed by the Speaker of the House
4/22/2026House
Signed by the President of the Senate
4/22/2026Senate
House Considered Senate Amendments - Result was to Concur - Repass
4/2/2026House
House Considered Senate Amendments - Result was to Laid Over Daily
3/25/2026House
Senate Third Reading Passed - No Amendments
3/24/2026Senate
Senate Second Reading Passed with Amendments - Committee, Floor
3/23/2026Senate
Senate Committee on Local Government & Housing Refer Amended - Consent Calendar to Senate Committee of the Whole
3/18/2026Senate
Introduced In Senate - Assigned to Local Government & Housing
3/6/2026Senate
House Third Reading Passed - No Amendments
3/2/2026House
House Third Reading Laid Over Daily - No Amendments
2/27/2026House
House Second Reading Special Order - Passed with Amendments - Committee
2/26/2026House
House Committee on Transportation, Housing & Local Government Refer Amended to House Committee of the Whole
2/24/2026House
Introduced In House - Assigned to Transportation, Housing & Local Government
2/3/2026House

Bill Text

Engrossed
PDF
Final Act
PDF
House Transportation, Housing & Local Government Preamend
PDF
Introduced
PDF
Reengrossed
PDF
Rerevised
PDF
Revised
PDF
Senate Local Government & Housing Preamend
PDF
Signed Act
PDF

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