2020 Colorado Revised Statutes
Title 11 - Financial Institutions
Article 38. Reverse Mortgages
Section 11-38-107. Repayment.
(1) A reverse mortgage may become due and payable upon the occurrence of any one of the following events:
The home securing the reverse mortgage is sold.
The borrower ceases to occupy the home as a principal residence.
Any fixed maturity date agreed to by the lender and the borrower is reached.
An event occurs which is specified in the terms of the reverse mortgage and whichjeopardizes the lender's security.
Upon death of the borrower.
(2) The repayment requirement described in subsection (1) of this section is also expressly subject to the following additional conditions:
Temporary absences from the home not exceeding sixty consecutive days shall notcause the reverse mortgage to become due and payable.
Temporary absences from the home exceeding sixty consecutive days but not exceeding one year shall not cause the reverse mortgage to become due and payable so long as the borrower has taken prior action which secures the home in a manner satisfactory to the lender.
The lender's right to collect reverse mortgage proceeds shall be subject to the applicable statute of limitations for loan contracts pursuant to section 13-80-103.5, C.R.S.; except that the statute of limitations shall commence on the date that the reverse mortgage becomes due and payable.
Prior to the closing of a reverse mortgage, the lender must prominently disclose anyinterest or other fees to be charged during the period that commences on the date that the reverse mortgage becomes due and payable and ends when repayment in full is made.
Source: L. 92: Entire article added, p. 941, § 1, effective April 23.
