Bill Designed To Help Homeowners Facing Foreclosure In Colorado

DENVER (CBS4) – Coloradans could soon have more help when it comes to foreclosures.

Two lawmakers are introducing bills aimed at giving struggling homeowners more options if they’re facing foreclosure.

One bill would force banks to literally provide evidence or proof, showing that they have the right to foreclose. The other would give people more access to options like loan modifications to try and keep them in their homes as long as possible.

The bills are being introduced by two Democratic state representatives. They say their hope is to provide Coloradans with more security and more options which, in turn, would help to stabilize a recovering economy.

“Attorneys can now sign a certification saying that their clients have the right to foreclose because they say so,” said Rep. Beth McCann, D-Denver. “What we’re saying is, ‘Fine. Bring the proof to court.’ ”

Sharon and Rick McKee have been fight to save their home. They lost their jobs during the economic downturn and have been through a strenuous foreclosure process.

“We started the modification process in 2008. We were modified, cancelled, modified again over five times,” Sharon McKee said. “And then put into the foreclosure process at least twice.”

The two lawmakers held a meeting at the McKee home to talk about the two bills they plan to introduce.

Disabled veteran Leonard McWilliams has had multiple banks purchase and sell his loan, making loan modification nearly impossible.

“Give homeowners all of their options available to them so they can determine whether or not they are eligible for a loan modification,” said Rep. Crisanta Duran, D-Denver. “In the event that they are denied a loan modification, what this bill does is it requires the banks to give them full disclosure as to why.”

About 20 percent of homes in Colorado are underwater. There’s also data that points to tens of thousands of additional foreclosures still on the horizon.

“I don’t have any desire to criticize the other party … currently there are people on both sides of the issue who have done a superior job in helping homeowners resolve issues with their lenders,” said Rep. Chris Holbert, R-Parker. “This is exactly the wrong course of action.”

Holbert said it would be better to find ways to help the Colorado Foreclosure Hotline.

“That would be a far better effort than to make it more difficult to complete the foreclosure process,” Holbert said.

The foreclosure process in Colorado is about a year long, some of the longest in the nation.

LINK: Colorado Foreclosure Hotline

  • Asodeska

    This is not a complex problem. Either you keep up on your payments, or you lose your house.
    That is NOT rocket science. But Left wing politicians, aka Democrats, have been trying to muddy the waters on this issue for some time.
    By all means have the banks bring proof to court if it goes to court. Either the people made their payments, or they did not.
    Even if the bank offers loan modification, the contract still stands by the same rules.
    Making the foreclosure process more difficult for banks is just one more Democrat backed scam against business.

  • disgusted

    Foreclosure is a legal process. If homeowners miss payments, real property law dictates that only the party of interest can foreclose. What’s the problem? Prove up ownership to the courts via proof of holding the original note, and foreclose. If, on the other hand, the foreclosing entity doesn’t hold the note, they have no legal right to foreclose. There is nothing illegal about missing payments, and losing a house. It is ILLEGAL to present yourself as the holder of the note, when you are not. Simple solution: foreclose legally, within a system that requires that all participants follow real property law.
    Again, banks- what’s the problem?

  • disgusted

    To Chirs Holbert, I would ask: “Why is following the tenets of real property law” the “worst thing they could do?” If I lived in Parker, I would actively seek to remove you from the position of responsibility that you hold. Clearly you are not responsible enough to see to it that real property law is upheld for your constituency. As Asodeska states, although in a different context, THIS IS NOT ROCKET SCIENCE.

  • has

    a note to the uninformer–all anyone interested in foreclosure fraud abuses has to do ,is do a search on the internet. ask google “foreclosure fraud abuses against______bank and you can see that the corruption is rampant. why every state attorney general in every state hasn’t taken action is baffeling. the big 25 billion federal proposed settlement is a weak government response to widespread criminal activity. and we wonder why people have such low regard for elected politicians!!!!!

  • disgusted

    Every homeowner in Colorado needs to submit a qualified written request to their “lender”. Google it, and the form will be available. This form must be responded to, and forces the “lender” to provide all mortgage assignments. Once you get the assignments, google all signatures- you’ll be amazed that you’re holding fraud in your hand. Whether you’re in foreclosure or not, submit the request- you are likely dealing with a tltle problem on your home.

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