Foreclosure of installments without acceleration.

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(1) Any mortgage or deed of trust securing an evidence of debt payable by installments giving the right to declare the whole indebtedness due and payable on default of the payment of any part thereof may, at the election of the holder of the evidence of debt, be foreclosed as to any one or more past due installments of principal or interest as if the mortgage or deed of trust separately secured each of the past due installments, and, in the event of such election, the officer conducting the foreclosure shall apply the following provisions:

  1. Attorney fees allowed for the attorney for the holder of the evidence of debt shall notexceed ten percent of the amount of principal, interest, and late charges included in the bid prepared in accordance with section 38-38-106.

  2. Fees and costs allowable under section 38-38-107 may be included in the bid.

  3. The amount for which the property is foreclosed shall include past due installmentsand all sums advanced for fees and costs by the holder of the evidence of debt pursuant to the terms of the mortgage or deed of trust securing the debt.

  4. Not more than one foreclosure proceeding may be commenced pursuant to this section in a period of twelve months.

  5. The notice of election and demand or complaint filed to commence the foreclosureshall contain the following statement: "This is a foreclosure on one or more installments, without acceleration, as authorized by section 38-38-201, Colorado Revised Statutes."

  6. No deficiency bid shall be made by the holder of the evidence of debt or accepted bythe officer conducting the foreclosure sale. Upon the sale and the expiration of all redemption periods, the maker of the secured indebtedness and all parties who may be personally liable thereon shall be released from personal liability on the indebtedness, unless the property is redeemed under section 38-38-302.

  7. The foreclosure shall not affect the continuance of the lien of the mortgage or deed oftrust as to any remaining obligation secured by it but not covered by the foreclosure, whether the remaining obligation is due before or after the foreclosure, and the title acquired as a result of the foreclosure shall be subject to the lien securing the remaining obligation.

(2) Nothing in this section shall be construed to prevent the holder of an evidence of debt secured by any mortgage or deed of trust from exercising any option contained therein to declare the whole indebtedness due and payable, nor shall any of the provisions of this section be applicable to a foreclosure in which the whole indebtedness has been declared due and payable.

Source: L. 90: Entire article R&RE, p. 1663, § 2, effective October 1. L. 2006: Entire section amended, p. 1466, § 19, effective January 1, 2008.

Editor's note: (1) The provisions of this section are similar to provisions of several former sections as they existed prior to 1990. For a detailed comparison, see the comparative tables located in the back of the index.

(2) The effective date for amendments made to this section by chapter 305, Session Laws of Colorado 2006, was changed from July 1, 2007, to January 1, 2008, by section 27 of chapter 404, Session Laws of Colorado 2007. (See L. 2007, p. 1849.)


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