§ 6-1-1121 — Short sales - subsequent purchaser - definition

Colorado § 6-1-1121

• Jurisdiction: Colorado
• Title 06: Consumer
• Art.: Colorado Consumer Protection Act

Text

(1) With respect
to any short sale transaction in which an equity purchaser intends to resell the
residence in foreclosure to a subsequent purchaser, the equity purchaser shall:

(a) Provide full disclosure to the home owner and to the holders of the
evidence of debt on the residence in foreclosure, or such holders' representatives,
of the terms of the agreement between the equity purchaser and any subsequent
purchaser, including but not limited to the purchase price to be paid by the
subsequent purchaser for the residence in foreclosure, which disclosure shall be
made within one business day of identifying any such subsequent purchaser and in
no event later than closing on the short sale transaction;

(b) Provide full disclosure to any subsequent purchaser and to any
subsequent purchaser's lender, or such lender's representative, at the time of
contract with the equity purchaser, of the terms of the agreement between the
equity purchaser and the home owner, including but not limited to the purchase
price paid by the equity purchaser for the residence in foreclosure;

(c) Comply with all applicable rules adopted by the Colorado real estate
commission with regard to short sales; and

(d) Comply with section 38-35-125, C.R.S.

(2) As used in this section, a subsequent purchaser means any person who
enters into a contract with an equity purchaser prior to the disbursement of the
short sale transaction to acquire the residence in foreclosure and who acquires the
residence in foreclosure within fourteen days after the disbursement of the short
sale transaction.

Legislative History

Source: L. 2010: Entire section added, (HB 10-1133), ch. 350, p. 1618, � 8, effective January 1, 2011.