Legislators in Colorado study two bills on HOA foreclosures

By Elias DaSilva | September 11, 2024.

Thanks to the two bills being studied in Colorado by legislators, which seek to reform foreclosure practices by HOAs (Homeowners Associations), homeowners may have relief from financial pressure when facing the foreclosure of their homes.

The bill being studied in the House of Representatives includes several main points:

That attorney fees be capped at $5,000, or half of the homeowner’s unpaid dues, whichever is less.

That homeowners and tenants have priority in purchasing foreclosed properties, with a maximum period of 30 days to declare their intent to purchase and 180 days to complete the purchase.

The second House bill also aims to prevent sales at very low prices by setting a minimum offer of 60 percent of the market value for homes foreclosed by HOAs.

These new bills could significantly affect homeownership and HOA operations not only in Denver but throughout the state of Colorado.