Colorado Public Trustee Act Foreclosure Procedures Modifications

CO Legislature Bill Search

Published January 1st, 2026

Detected February 28th, 2026

Summary

Colorado Bill HB26-1098 modifies foreclosure procedures under the Public Trustee Act. Key changes include setting public trustee salaries, repealing certain reporting and procurement requirements, clarifying fund sources, defining 'nonmaterial misstatement', and updating notice and redemption rules for foreclosures.

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What changed

Colorado Bill HB26-1098 introduces several modifications to the existing "Colorado Public Trustee Act" concerning foreclosure procedures. The bill addresses the salary of public trustees in specific counties, removes the requirement for public trustees to make certain statements under oath to county commissioners, and repeals the application of the state "Procurement Code" to appointed public trustees. It also clarifies the funding sources for public trustees, removes the definition of "certified copy," and defines "nonmaterial misstatement." Furthermore, the bill clarifies timelines for mailing notices of sale, rights to cure, and rights to redeem, and specifies conditions for junior lienor redemption and the handling of excess sale proceeds. It also introduces new requirements regarding the recording of lien assignments prior to sale and clarifies rights and termination of interests for omitted parties after a foreclosure sale.

These changes will impact public trustees, county treasurers, junior lienors, and potentially omitted parties involved in foreclosure proceedings in Colorado. Regulated entities, particularly those involved in real estate transactions and foreclosures, should review the specific provisions of HB26-1098 to understand how these modifications affect their obligations and rights. While the bill was introduced for the 2026 Regular Session, specific compliance deadlines are not detailed within this summary, but the effective date of the bill will dictate when these new procedures must be followed.

What to do next

Review HB26-1098 for specific impacts on foreclosure procedures.
Update internal policies and training for public trustees and staff regarding new notice, redemption, and fund handling requirements.
Ensure compliance with new requirements for lien assignment recording prior to foreclosure sales.

Source document (simplified)

HB26-1098

Public Trustee Act Foreclosure Procedures

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Civil Law Local Government |
Concerning modifications to the "Colorado Public Trustee Act" related to foreclosure procedures.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

The bill makes modifications related to foreclosure procedures in the "Colorado Public Trustee Act" to:

Set the salary of the public trustee in counties where the county treasurer serves as the public trustee;
Eliminate the requirement that a public trustee make certain statements to the board of county commissioners under oath;
Repeal the requirement that a public trustee appointed by the governor be subject to the state "Procurement Code";
Clarify the source of funds used to pay a public trustee;
Repeal the definition of "certified copy" and references thereto;
Define "nonmaterial misstatement";
Clarify the date by which the public trustee or sheriff conducting a foreclosure (officer) must mail the combined notice of sale, right to cure, and right to redeem to persons on an amended mailing list;
Clarify that a junior lienor is entitled to cure the default if the junior lienor files with the officer;
Specify that unclaimed remaining amount for which a property is sold at a foreclosure sale that is in excess of the bid amount may be transferred to the state treasurer for disposition or held by the county treasurer pursuant to the terms of a county resolution regarding unclaimed funds;
Add a requirement regarding redemption that specifies that if a lien is assigned, the holder's rights are valid only if the assignment of the lien is duly recorded at least 15 calendar days prior to the date of sale;
Clarify an omitted party's rights after a foreclosure sale; and
Specify when an omitted party's interest may be terminated. (Note: This summary applies to this bill as introduced.)