15.3.2.080 Power of the Trial Court

(a) The Trial Court shall enter judgment in favor of a Lender if all of the following requirements are met:

(1) A Notice of Default has been properly provided to all persons or entities as required by this Act;

(2) The Lessor's Right of First Refusal has not been exercised;

(3) The default has not been cured within the allowable period as provided in the Mortgage documents or in this Act; and

(4) The Trial Court finds that the Lender has proven its claim by a preponderance of the evidence.

(b) A judgment for the Lender in a Mortgage Foreclosure Proceeding shall:

(1) Foreclose the Borrower's interest in the mortgaged property, and each other defendant named in the complaint upon whom proper and timely service was made, including each Subordinate Lienholder; and

(2) Assign the Leasehold Interest in the mortgaged property to the Lender or any purchaser of the Leasehold Interest at a foreclosure sale, subject to the following:

(A) The Borrower's right of redemption, if applicable;

(B) Limitations as to who may become an assignee of a Leasehold Interest as stated in the Lease or as determined according to the regulations of the Authority adopted pursuant to 15.1.8.070(b)(22); and

(C) The right, under HUD Section 248 guarantees, to convey the Leasehold Interest to the HUD Secretary without providing the Pueblo the Right of First Refusal.

(3) Order the proceeds of such foreclosure sale to be applied in the following order:

(A) First, toward the satisfaction of any lien resulting from the assessment of any Leasehold Tax;

(B) Next, toward any lien having a priority date prior to that of the Mortgage documents;

(C) Next, as provided in the Mortgage documents; and

(D) Finally, toward any liens having a priority date subsequent to the Mortgage documents.

(c) The Trial Court shall have the authority to enter against the Borrower a judgment for any or all of the following:

(1) Past due payments, unpaid utilities, and any charges due the Pueblo or Lessor under any Lease or occupancy agreement;

(2) Any and all amounts secured by the Mortgage that are due the Lender; and

(3) Damages caused by the Borrower to the property other than ordinary wear and tear.

(d) The Trial Court shall have the authority to award the prevailing party its costs and reasonable attorneys' fees in bringing suit.

(e) The Trial Court shall not have the authority to enter a deficiency judgment except as may be required pursuant to a federal loan guarantee program.