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Foreclosure Overbid Amount Return To Homeowner

Concerning the eligibility of junior lienors to receive foreclosure overbid funds.

HB16-1096 2016 Regular Session Not stated Civil Law Courts & Judicial Housing

Cost estimates

At the first note read
No state fiscal impact
FACT January 26, 2016
At the last note read
No state fiscal impact
FACT June 22, 2016
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

Bill summary

Under current law, the owner of real property that is sold in foreclosure for more than the amount owed to the foreclosing party (usually a bank holding a mortgage on the property) may be entitled to the proceeds of the sale in excess of the amount owed to the foreclosing party. This excess is known as an 'overbid'. The overbid is first applied to satisfy the claims of junior lienors that give notice of their lien to the public trustee but do not redeem their interests during a specified time. After that, title to the property vests in the purchaser at the foreclosure sale or the last of the junior lienors to redeem, if such a redemption has occurred.

Certain junior lienors are defined as ineligible to receive any portion of the overbid. These include junior lienors that miss filing deadlines or that settle their lien claims for a discount. The bill adds the last redeeming lienor to the list of persons who are ineligible to receive overbid funds, ensuring that to the extent any overbid remains, it goes to the original owner.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)