Court Opinion

ID: 9793734
Source: CourtListenerOpinion
Date Created: 2023-08-31 02:52:10.270127+00
Date Added: 2024-06-11T08:06:42.895597
License: Public Domain

TURSI, Judge,
dissenting.
I respectfully dissent.
I would reverse the trial court ruling because of Howell’s failure to comply with the provisions of § 38-41-206, C.R.S. The trial court erred in concluding that Howell’s redemption of the property was not a proceeding against the property.
It is undisputed that on October 5, 1982, Arapahoe Colorado National Bank (Bank) purchased the property in question at a foreclosure sale for the amount owed under a deed of trust. This was done without regard to the homestead exemption because Farrish and Barnett had waived the homestead exemption as to the Bank. However, this waiver was not effective as to Howell.
In Frank v. First National Bank, 653 P.2d 748 (Colo.App.1982) (cert. denied Nov. 8, 1982), this court held that a waiver of homestead right in a deed of trust does not constitute a waiver of that right as to all creditors and thus was not a waiver of homestead rights to junior judgment lien-holders. Frank was decided on July 1, 1982, and its holding is controlling in this case. Thus, the waiver to the Bank had no effect in favor of Howell when he redeemed the property on December 30,1982.
The importance of the Frank holding to this case is underscored by the fact that the homestead provisions were amended, effective June 15, 1983, with an additional section which extends the effects of a waiver of homestead rights to persons redeeming property sold in foreclosure. Section 38-41-212, C.R.S. (1985 Cum.Supp.). This section was enacted subsequent to all material events in the case at hand; therefore, it has no bearing on the outcome of this case. Nevertheless, it does serve to highlight the interrelationship between foreclosure, redemption, and the homestead exception.
Howell’s right of redemption must be considered in light of the statutory framework which created that right and which was applicable when it was exercised. That framework includes the homestead exemption.
Because Frank limits a homestead exemption waiver in a deed of trust to only the beneficiary of that trust deed, Howell’s right of redemption remains subject to the undisputed homestead exemption. Therefore, Howell is not entitled to reap the benefit of redemption until he complies with the requirements of the homestead exemption statutes set out at § 38-41-201, et seq., C.R.S.