Northern Colorado woman forced to pay nearly $900 in utility bills owed by home's previous owners

A Fort Collins woman says she was forced to pay nearly $900 in utility debt she did not personally incur after discovering two previous owners, since 2015, failed to pay their bills.

Rene Nelson has spent nearly three years buying manufactured homes, often purchasing properties from owners facing foreclosure. She renovates the homes and then resells them for a profit.

When Nelson recently found a buyer for one of her remodeled homes, she expected the sale to proceed without issue.

Instead, Nelson said she learned there was a lien attached to the property for unpaid utility charges dating back to 2015 and 2022. The balance totaled nearly $900.

"Honestly, I thought it was a big misunderstanding or a big mistake," Nelson said. "There's got to be some mistake. I didn't buy the property until 2025."

Unlike traditional real estate, manufactured homes are often considered personal property when the homeowner owns the structure but rents the land beneath it. Nelson said she purchased the home through a cash transaction and received a bill of sale through the Larimer County DMV, a process commonly used for manufactured homes.

Nelson said she paid all of her own utility bills on time while renovating the home and eventually found a buyer. The issue surfaced only because the buyer chose to use a closing company to complete the transaction.

The closing company discovered the utility lien and flagged it during the sale process.

Nelson said she contacted the City of Fort Collins seeking answers.

"Why would you guys let me start utilities here and not tell me that there is a lien against the property or that there's any balance due?" Nelson said.

According to the city, responsibility for identifying outstanding utility liens falls on buyers as part of their due diligence before purchasing a property.

"Do you feel like you're being punished for someone else's debt?" CBS News Colorado's Dillon Thomas asked Nelson.

"100%. I mean, it doesn't make any sense to me that anybody would be responsible for charges that happened before they purchased a home," Nelson said.

Nelson said many buyers of manufactured homes are working within tight budgets and often do not use closing companies because the transactions typically do not require them.

She worries unexpected costs such as utility liens could create financial hardships for buyers seeking affordable housing options.

"This community, especially, they need affordable housing, and this is a really unfair practice," Nelson said.

The City of Fort Collins declined an interview request from CBS News Colorado, citing customer confidentiality, but provided a written statement explaining its policies regarding unpaid utility balances.

"Due to confidentiality, the City of Fort Collins is unable to comment on specific customer billing issues. In general, the City recovers unpaid charges for utility services under the Fort Collins code provision 26-718, which holds the property owner responsible for unpaid balances on the property. The lien attaches to the property served by the utilities," said Nick Combs, spokesperson for Fort Collins Utilities.

Combs said title companies routinely contact the utility provider during property transactions to request closing estimates and identify any outstanding utility obligations.

"Normally when a property is sold, a title company will contact the utility requesting a closing estimate of utilities. At that time, the new property owner (buyer) will discover existing liens, or through their own due diligence, providing an opportunity to have that debt paid by the responsible party," Combs said.

CBS News Colorado also requested an interview with the city attorney regarding the issue but did not receive a response.

Nelson said she believes the city should either pursue the individuals who originally failed to pay the bills or make utility liens easier for prospective buyers to identify through online records.

For buyers who complete transactions without a title or closing company, Combs recommended contacting Fort Collins Utilities and requesting a "lien letter" before finalizing a purchase.

Combs also addressed how utility responsibilities apply to manufactured homes, where residents own the home itself but rent the land beneath it.

"Utility service is used by the mobile home occupants. Users of the service sign up for accounts for select services. In this case, the mobile home received the electric service, which is then the mobile homeowner's responsibility, as opposed to the water, wastewater, and stormwater, which is billed to the landowner and is their responsibility," Combs said.

Combs said the city's code identifies the property as the location where utility service was delivered.

"As with any property sale, buyers should take necessary steps to ensure clear title, as well as notify the utility of property ownership changes. Ultimately, unpaid utility charges are borne by all utility customers," Combs said. "If an owner does not check to see if all utility obligations are paid prior to taking possession, then they may take ownership with attached unpaid obligations. This is why the title companies contact us as part of a sale to be sure there are no lingering utility obligations."