CO SB071

Requires mortgage lenders to pursue loan modification alternatives before foreclosing on residential properties with 4 or fewer dwelling units that were finalized after January 1, 2001.

Mandates lenders make direct contact with borrowers (minimum 4 phone calls over 30+ days and 2 written notices) and assess borrower eligibility for public or private loan modification programs before initiating foreclosure.

Requires lenders to send borrowers detailed notices about foreclosure alternatives, provide application packets within 10 days of contact, and allow at least 15 days for document submission.

Establishes certification requirements that lenders must provide to foreclosure attorneys documenting all efforts to contact borrowers, reviews of modification programs, and detailed reasons for any denials.

Allows borrowers to dispute modification denials within 30 days and request a meeting with a mediator; prohibits foreclosure sales for at least 30 days after denial notice is sent.