In an unexpected and outstanding turn of events, the House State, Veterans & Military Affairs Committee, in a bipartisan 6 to 5 vote, reported an amended version of House Bill 15-1113 ("HB 1113") out of Committee yesterday with a favorable recommendation to the full House of Representatives.
As originally introduced by Representative Kit Roupe (R-Colorado Springs), HB 1113 would have protected HOAs in Colorado from the financial consequences of lenders repeatedly pushing out the sale dates of public trustee foreclosures, by requiring lenders who continue the foreclosure sale date to pay the assessments on the unit they are foreclosing upon until the lender actually sells the home in foreclosure. HB 1113 was amended in Committee to require lenders to pay assessments if the lender withdraws the foreclosure and then refiles the foreclosure at a later date. Under this scenario, the lender would be required to pay the assessments upon refiling the foreclosure until the home is actually sold.
Given the fact that the bankers have strongly opposed this bill, it’s going to be a real battle to keep this bill from being killed on the floor of the House. Stay tuned to this blog for important updates on HB 1113 as it continues through the legislative process.