Denver area homeowners who are facing foreclosure can feel helpless that a financial institution that they never heard of can be taking their homes without proving that they had any right to do so. A bill introduced by Rep. Beth McCann to be considered during the current session could change that.
It turns out that Colorado law lets a foreclosure attorney simply sign a document that the homeowner is behind on their mortgage and that they are not in the military. No actual documents have to be shown that the financial institution actually owns the mortgage.
Rep. Beth McCann, D-Boulder, has taken steps to force the foreclosing lender to prove that they have the right to send a Colorado home to auction by showing the documentation that they own the mortgage. The county judge who will review the case will have to certify that the lender has the right.
With the introduction of HB12-1156 it will take more than a lawyer simply saying that a bank has a right to foreclose, according to McCann. She introduced her bill in January, 2012.
According to current Colorado law, a homeowner can fight back if they have enough money to retain a lawyer to file a lawsuit challenging the foreclosure. But that won’t stop the process, and the home may be auctioned off before the lawsuit runs its course.
Has your Denver area home been threatened with foreclosure? Were you provided with documentation that proved that the financial institution that was foreclosing actually had the right to do so? Have you tried to challenge a foreclosure on your home?