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CO legislators “Kill Bill” requiring lenders to prove right to Foreclose on a home!

Posted on March 27, 2012 by Ray Williams (NMLS #216267).

Many of us now a days either know someone directly or know of someone who has either foreclosed or is going through the process of foreclosing on their home. Today I read some more news regarding the foreclosure process in Colorado, news that will not impact us but nonetheless is important for us to be informed.

Legislators killed a bill on March 13th requiring that lenders prove they have the right to foreclose on a home, saying they killed this bill because they grow tired of laws trying to reform the Colorado foreclosure process.

If this bill would of passed it would of put a stop to the current practices that were started 6 years ago, which allows foreclosures on just a lawyer’s say-so. Which if fact the law also absolves the attorneys from culpability if they’re wrong.

The representatives for the bill feel it is necessary to refine the current foreclosure process.  Those against it feel there has already been too many bills passed to reform the procedure (15 bills passed since 2005) and feel we should leave it alone, the process we have now is just fine the way it is.

Should this bill have passed? Or would it have been “too much” paperwork to prove the right to foreclose.  Making it a longer process and are banks getting lazy and going with the easy route? Is there really a need to show documentation proving the need to foreclose on a property?  I don’t think any of us really knew that they are not required to prove documentation on a foreclosure. That the lawyers representing the banks just handle the paperwork but are not required to fully investigate all documentation showing and proving bank ownership and verifying the need to foreclose.

“There are people whose homes are being taken wrongfully, or there are people who wanted to cure their loans and could have, if not for the cloudy paperwork, it would have alleviated all of this.”  stated economic justice director Corrine Fowler

This article raised my eyebrows and I felt it needed to be shared.

Here is the full article from Denver Post to read more on the issue.

~Ray Williams

Summit Home Mortgage

rwilliams@summit-mortgage.com

303-779-0591 ext. 101

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