Colorado Foreclosure laws question

[Leslie Beachwood]

Hi, I'm a new investor interested in purchasing notes secured by real estate and am investigating state-by-state laws regarding the buying, selling and servicing of notes. I spoke today with a compliance investigator in Colorado Attorney General's office, who informed me that if I purchase a loan in default and eventually have to move to foreclose, I will not be allowed to foreclose without my company first obtaining a collection agency's license. This is because, he said, that I would not be the "creditor", even though I own the note; according to Colorado law the "creditor" is the entity that created the loan. Has anyone ever been faced with this situation in Colorado, or know more about this law? I'm inclined to pass on the state entirely if it's true. Apparently acquiring a collection agency license requires first proving you have two years of collection experience -- or you must hire a collections manager. All in all, way to much trouble.

[Adrian Tilley]

@Leslie Beachwood Talk to a qualified attorney. I can recommend someone if you PM me.