Colorado Foreclosures: Failed Bill May Get 2nd Chance This November

The ballot initiative — called the Foreclosure Due Process and Fraud Prevention Initiative — squarely takes on Colorado law that uniquely allows for “no-doc” foreclosures, where lenders can take a home without ever having to prove they have that right.

“In other states, courts are scrutinizing whether the foreclosing party has the right to foreclose and concluding that in most cases (they haven’t) demonstrated that right with proper documentation,” said Debra Fortenberry, a Colorado Springs attorney who helped draft the initiative with Brunette and the Colorado Progressive Coalition.

“In Colorado, there is nothing to scrutinize,” she said.

No other state allows for a foreclosure without the lender first proving it is the right entity to do so. Colorado allows foreclosure lawyers to sign a “statement of qualified holder,” which basically says they think their client owns the note or mortgage without ever actually seeing it — a practice some states have labeled as “robo-signing.”

Read more: Failed bill on foreclosure filing in Colorado may get second chance on November ballot – The Denver Post http://www.denverpost.com/business/ci_20287488/failed-bill-foreclosure-filing-colorado-may-get-second#ixzz1qdS7MqRq
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