HB 12-1156 Summary

• Eliminates provision allowing foreclosures based solely on attorney statement that holder's interest is valid; requires holders to file original or certified copies of evidence of debt, deed of trust, and all intervening assignments or indorsements with public trustee before foreclosure sale authorization.

• Requires courts issuing rule 120 orders (foreclosure authorizations) to make specific findings on whether the applicant is the debt holder, real party in interest, has legal standing, and whether documents are authentic and sufficient, with burden of proof on the applicant.

• Clarifies that rule 120 orders are not final judgments and do not adjudicate all claims of rights and interests in the property, preserving rights for quiet title actions under Colorado Rules of Civil Procedure rule 105.

• Requires agents, nominees, or trustees commencing foreclosure to provide documentation demonstrating authorization to enforce the debt, and requires any subsequent assignees or transferees to comply with documentation requirements.

• Suspends eviction proceedings under unlawful detention statutes if a court action challenging the foreclosure sale under rule 120 has been filed, until that action is resolved by judgment on the merits.