Summary of SB10-045

Sponsors: Morse/Kerr A.

Current law requires the holder of a residential mortgage (holder) to send written notice to a debtor 30 days prior to filing a foreclosure. The bill changes the time to 60 days and requires the notice to include information concerning:

• The holder's duty to negotiate for a mutually acceptable agreement to avoid foreclosure (mutually acceptable agreement); and
• If a foreclosure action is commenced, the duty of the holder to participate in mediation.

The bill requires the holder to negotiate for a mutually acceptable agreement prior to commencing a foreclosure. Prior to issuing an order authorizing sale under a residential
mortgage loan, the bill requires the court to:

• Appoint a mediator;
• Verify that the costs of mediation have been paid; and
• Receive from the mediator a notice that the parties were unable to reach a mutually acceptable agreement.

The mediator shall schedule a mediation. The bill specifies sanctions for persons who fail to appear, fail to provide documents requested by the mediator, or fail to negotiate in good faith. At the conclusion of the mediation, the bill requires the mediator to notify the parties and the court of the outcome. The holder is responsible for the payment of the costs of the mediation.
The bill directs the Colorado supreme court to adopt rules concerning who is qualified to act as a mediator.
The bill grants immunity from civil action to a mediator acting in good faith.
The bill makes a waiver of any rights related to a mortgage deferment prior to the date of a default void as against public policy.
The bill removes the repeal of the mortgage deferral provisions.

Status:

01/13/2010 Introduced In Senate - Assigned to State, Veterans & Military Affairs

Fiscal Notes

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