CO HB1224

Expands the definition of "qualified holder" in foreclosure proceedings to include private companies with at least $5 million in assets or 1,000 active loans that originate, insure, guarantee, or purchase loans secured by time share deeds of trust.

Changes terminology from "owner" to "borrower" throughout foreclosure statutes to refer to persons or entities liable under mortgage loans or deeds of trust.

Requires public trustees to post notice on their websites and mail notices to borrowers within 30 days of foreclosure sales indicating they may be entitled to overbid funds exceeding amounts owed to lenders and lienors.

Prohibits agreements to pay compensation for recovering overbid amounts owed to borrowers and establishes misdemeanor penalties of up to six months jail time and $10,000 fines for inducing others into such agreements.

Mandates publication of unclaimed overbids exceeding $500 in newspapers for four weeks if not claimed within 60 days, with unclaimed funds transferred to the state treasurer after six months.