I n 2006, the Colorado State Legislature sided with the banks by making it easierfor them to foreclose on Colorado homeowners. Before 2006, banks had to prove they actually owned the mortgage on the property they were foreclosing on. But the 2006 law “streamlined” the process and allowed the attorney for the bank to simply attest to the bank’s ownership without any proof. This led to fraud and sometimes to lenders foreclosing on homes they didn’t have the legal right to foreclose on.
This process continues in Colorado and is a violation of people’s property rights and of the Fifth Amendment to the U.S. Constitution, which states: “No person … shall be deprived of life, liberty, or property without due process of law.”
It is not surprising then, that in 2010, Colorado was among the top 10 states in the nation for foreclosed properties.
Making it easier for the banks to foreclose is obviously not in the interest of the average Coloradan, or for the 99 percent. Why did the people’s representatives at the state capitol betray the people? Maybe the big bucks needed for re-election?
In 2012, the Colorado Progressive Coalition and other organizations tried to get a law passed by the Colorado legislature that would have reversed the 2006 gift to the banks.
Unfortunately, the bill was killed and the banks won again.
In response, the Colorado Progressive Coalition (progressivecoalition.org) and other groups have decided to take the issue to the people in a statewide ballot initiative in November 2012.
According to the Coalition: “The major purpose of the proposed amendment … is to prohibit the commencement of foreclosure proceedings until the party claiming the right to foreclose … files competent evidence of its right to foreclose with the clerk and recorder of the county in which the real property is located.”
It’s common sense and in a recent poll, 80 percent of Coloradans supported the proposal.
The next step is to collect the 110,000 signatures to get the measure on the ballot. Do you think the banks should have to prove they own a property before they foreclose on it? Then join this exciting campaign and help us collect the needed signatures.
Contact Carolyn Bninski at the Rocky Mountain Peace and Justice Center at 303-444-6981 ext. 2 or Carolyn@rmpjc.org to help protect the rights of people against fraud by the banks.