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HomeMy WebLinkAbout20241687.tiffRESOLUTION RE: APPROVE AUTHORIZATION FOR COLLECTION OF INCREASED FORECLOSURE DEPOSITS BY WELD COUNTY PUBLIC TRUSTEE WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, pursuant to C.R.S. §38-38-101(10), the Public Trustee may collect a deposit to cover the cost of attorney/self-represented investor fees to perform a foreclosure sale, and WHEREAS, the Board has been presented with a request from the Weld County Public Trustee to increase the deposit amount collected to avoid delays and/or additional collection efforts prior to the sale, and WHEREAS, after study and review, the Board deems it advisable to approve the request to increase the deposit amount from $650.00 ($500.00, plus the previous $150.00 fee) to $900.00 ($500.00, plus the increased fee of $400.00), with any overage to be refunded to the attorney/self-represented investor once the sale is complete. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that pursuant to C.R.S. §38-38-101(10), the Weld County Trustee, be, and hereby is, authorized to collect increased deposits in the amount of $900.00, to perform foreclosure sales, with any overage to be refunded to the attorney/self-represented investor once the sale is complete. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 24th day of June, A.D., 2024. BOARD OF COUNTY COMMISSIONERS WELD COUNT O ATTEST: !( Weld County Clerk to the Board BY. ( P_ Deputy Clerk to the Board APP ty C.f Date of signature: (AYE) Kevin D. Ross, Chair Cae&&‘ Perry L. B Pro-Tem (AYE) (AYE) Mike ' eeman K. James Lori Saine (AYE) (NAY) CC •. TR03 °I3/2LI 2024-1687 TR0031 BOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW PASS -AROUND TITLE: REQUEST INCREASE TO PUBLIC TRUSTEE FORECLOSURE DEPOSIT DEPARTMENT: Treasurer & Public Trustee DATE: 05/29/2024 PERSON REQUESTING: Brigitte C Grimm Brief description of the problem/issue: Based on CRS 38-38-101(10)•, the Weld County Public Trustee (PT) requires a $650 deposit to start a foreclosure. 2024 legislation has increased all Public Trustee administrative, deed, and filing fees. This results in the need to increase the attorney's current $650 deposit ($500 plus "previous" fees of $150) to $900 ($500 plus "increased" fees of $400). This deposit is applied towards the fees and costs of holding a foreclosure. Any remaining balance is refunded to the attorney. "CRS 38-38-101 (10) is: Deposit. (a) The public trustee may require the holder or servicer to make a deposit of up to flue hundred dollars plus the amount of the fee permitted pursuant to section 38-37-104 (1) (b)(I), at the time the notice of election and demand is filed, to be applied against the fees and costs of the public trustee. What options exist for the Board? 1. APPROVE the increase from the current $650 to $900. $650 ($500 plus the previous fees of $150 fee) to $900 ($500 plus the increased fees of $400) 2. DECLINE the increase and keep the deposit at $650. Consequences: 1. Increasing the attorney fees to perform a foreclosure sale, permissible via CRS 38-38-101(10), may avoid delays and/or additional collection efforts prior to sale. Remaining balances are refunded to the attorney once the sale is complete. 2. Maintaining the current attorney fees of $650 may not cover necessary fees. This results in a collection effort by PT and a possible delay in holding a foreclosure. Impacts: Costs (Current Fiscal Year / Ongoing or Subsequent Fiscal Years): No fiscal impact. The Public Trustee does not use taxpayer monies to perform foreclosures. Based on CRS 38-38-101(10), all fees to the PT to hold a foreclosure sale are provided by the foreclosure attorneys. When auctioning a property, the winning bidder provides the funds to satisfy the delinquent debt, and any remaining overbid funds are paid to the homeowner. Recommendation: Our recommendation is to increase the foreclosure attorney's deposit from $650 to $900. A similar increase is being implemented by Public Trustee offices statewide to avoid a deficit resulting in added collections/delays prior to a sale. Support Recommendation Schedule Place on BOCC Agenda Work Session Other/Comments: Perry L. Buck, Pro-Tem Mike Freeman Scott K. James Kevin D. Ross , Chair Lori Saine rn� �u- 2024-1687 --rf 0031 Hello