HB13-1249 Summary

• Requires foreclosure initiators to possess original debt documents or certified copies with proper indorsements, eliminating the previous practice of relying solely on attorney statements regarding ownership.

• Expands liability for foreclosures conducted without original documents to include all damages to affected parties, removing the prior limitation on damages.

• Establishes a single point of contact requirement for loan servicers and prohibits "dual tracking," preventing simultaneous foreclosure proceedings while loan modification applications are pending.

• Requires prominent notice disclosures on residential foreclosure documents informing borrowers of their right to challenge the forecloser's legal standing and that statements from lenders or attorneys are not advice to the borrower.

• Effective July 1, 2013, applies to foreclosure proceedings initiated on or after that date and excludes servicers that file fewer than 100 residential foreclosures annually.