New State Disclosure Law Targets Colorado Short Sale Flippers

In Denver, Colorado, the Denver Real Estate Examiner reports:

• Governor Bill Ritter just signed HB 10-1133 into law, a bill that makes marked changes to the Colorado Foreclosure Protection Act. This applies to you if you are a real estate investor who buys and flips short sale properties. The bill’s target is the “short sale flipper.” So, for the investor who plans to sell a short sale property within 14 days of purchase, the new law will require you to inform all parties involved in the transaction (including all lenders) about both transactions (including the profit you will make).

For more, see Seller beware. New Colorado law adds oversight to short sale flips.