§ 6-1-1101. Short Title
This part 11 shall be known and may be cited as the “Colorado Foreclosure Protection Act”. Source: L. 2006: Entire part added, p. 1330, § 1, effective May 30.
§ 6-1-1102. Legislative Declaration
The general assembly hereby finds, determines, and declares that home ownership and the accumulation of equity in one’s home provide significant social and economic benefits to the state and its citizens. Unfortunately, too many home owners in financial distress, especially the poor, elderly, and financially unsophisticated, are vulnerable to a variety of deceptive or unconscionable […]
§ 6-1-1103. Definitions
As used in this part 11, unless the context otherwise requires: “Associate” means a partner, subsidiary, affiliate, agent, or any other person working in association with a foreclosure consultant or an equity purchaser. “Associate” does not include a person who is excluded from the definition of an “equity purchaser” or a “foreclosure consultant”. “Equity purchaser” […]
§ 6-1-1104. Foreclosure Consulting Contract
A foreclosure consulting contract shall be in writing and provided to and retained by the home owner, without changes, alterations, or modifications, for review at least twenty-four hours before it is signed by the home owner. A foreclosure consulting contract shall be printed in at least twelve-point type and shall include the name and address […]
§ 6-1-1105. Right of Cancellation
In addition to any right of rescission available under state or federal law, the home owner has the right to cancel a foreclosure consulting contract at any time. Cancellation occurs when the home owner gives written notice of cancellation of the foreclosure consulting contract to the foreclosure consultant at the address specified in the contract […]
§ 6-1-1106. Waiver of Rights – Void
A provision in a foreclosure consulting contract is void as against public policy if the provision attempts or purports to: Waive any of the rights specified in this subpart 2 or the right to a jury trial; Consent to jurisdiction for litigation or choice of law in a state other than Colorado; Consent to venue […]
§ 6-1-1107. Prohibited Acts
A foreclosure consultant may not: Claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented that the foreclosure consultant would perform; Claim, demand, charge, collect, or receive any interest or any other compensation for a loan that […]
§ 6-1-1108. Criminal Penalties
A person who violates section 6-1-1107 is guilty of a misdemeanor, as defined in section 18-1.3-504, C.R.S., and shall be subject to imprisonment in county jail for up to one year, a fine of up to twenty-five thousand dollars, or both. Source: L. 2006: Entire part added, p. 1338, § 1, effective May 30.
§ 6-1-1109. Unconscionability
A foreclosure consultant or associate may not facilitate or engage in any transaction that is unconscionable given the terms and circumstances of the transaction. If a court, as a matter of law, finds a foreclosure consultant contract or any clause of such contract to have been unconscionable at the time it was made, the court […]
§ 6-1-1110. Language
A foreclosure consulting contract, and all notices of cancellation provided for therein, shall be written in English and shall be accompanied by a written translation from English into any other language principally spoken by the home owner, certified by the person making the translation as a true and correct translation of the English version. The […]
§ 6-1-1111. Written Contract Required
Every contract shall be written in at least nine-point, legible type and fully completed, signed, and dated by the home owner and equity purchaser prior to the execution of any instrument quit-claiming, assigning, transferring, conveying, or encumbering an interest in the residence in foreclosure. Source: L. 2006: Entire part added, p. 1338, § 1, effective […]
§ 6-1-1112. Written Contract – Contents – Notice
Every contract shall contain the entire agreement of the parties and shall include the following terms: The name, business address, and telephone number of the equity purchaser; The street address and full legal description of the residence in foreclosure; Clear and conspicuous disclosure of any financial or legal obligations of the home owner that will […]
§ 6-1-1113. Cancellation
In addition to any right of rescission available under state or federal law, the home owner has the right to cancel a contract with an equity purchaser until 12 midnight of the third business day following the day on which the home owner signs a contract that complies with this part 11 or until 12 […]
§ 6-1-1114. Notice of Cancellation
The contract shall contain, as the last provision before the space reserved for the home owner’s signature, a conspicuous statement in at least twelve-point bold-faced type, as follows: You may cancel this contract for the sale of your house without any penalty or obligation at any time before (Date and time of day). See the […]
§ 6-1-1115. Options Through Reconveyances
A transaction in which a home owner purports to grant a residence in foreclosure to an equity purchaser by an instrument that appears to be an absolute conveyance and reserves to the home owner or is given by the equity purchaser an option to repurchase shall be permitted only where all of the following conditions […]
§ 6-1-1116. Waiver of Rights – Void
A provision in a contract between an equity purchaser and home owner is void as against public policy if it attempts or purports to: Waive any of the rights specified in this subpart 3 or the right to a jury trial; Consent to jurisdiction for litigation or choice of law in a state other than […]
§ 6-1-1117. Prohibited Conduct
The contract provisions required by sections 6-1-1111 to 6-1-1114 shall be provided and completed in conformity with such sections by the equity purchaser. Until the time within which the home owner may cancel the transaction has fully elapsed, the equity purchaser shall not do any of the following: Accept from a home owner an execution […]
§ 6-1-1118. Criminal Penalties
A person who violates section 6-1-1117 (2) or (3) or who intentionally violates section 6-1-1117 (4) is guilty of a misdemeanor, as defined in section 18-1.3-504, C.R.S., and shall be subject to imprisonment in county jail for up to one year, a fine of up to twenty-five thousand dollars, or both. Source: L. 2006: Entire […]
§ 6-1-1119. Unconscionability
An equity purchaser or associate may not facilitate or engage in any transaction that is unconscionable given the terms and circumstances of the transaction. If a court, as a matter of law, finds an equity purchaser contract or any clause of such contract to have been unconscionable at the time it was made, the court […]
§ 6-1-1120. Language
Any contract, rental agreement, lease, option or right to repurchase, and any notice, conveyance, lien, encumbrance, consent, or other document or instrument signed by a home owner, shall be written in English; except that, if the equity purchaser has actual or constructive knowledge that the home owner’s principal language is other than English, the home […]