With the current level of foreclosures in Colorado, real estate professionals specializing in this area should be aware of new legislation regarding foreclosures and mortgage lending.

Signed into law on May 30, 2006, the Colorado Foreclosure Protection Act (SB 06-071) aims at defending vulnerable homeowners from “deceptive or unconscionable business practices.” The bill requires those purchasing a foreclosure property to provide all necessary information in writing so that the homeowner may weigh their options and make intelligent decisions regarding the sale of their home. It also designates minimum requirements for contracts between the homeowner and an interested party. One of the new contract conditions provides the homeowner a five-day right to rescind.

A related Mortgage Broker Regulation bill (HB 06-1161) requires individual loan originators who broker mortgage loans to register with the State of Colorado by January 1, 2007. Prior to this law, Colorado was one of two states that did not require licensure for individual mortgage brokers.

For more information on the recent legislation, see the State of Colorado’s official site (www.colorado.gov), the Colorado Mortgage Lenders Association (www.cmla.com), and the Colorado Association of Mortgage Brokers (www.camb.org).

Sources: State of Colorado, CMLA

This entry was posted on Wednesday, July 5th, 2006 at 7:35 pm and is filed under Denver, Investing, Selling. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.