"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,
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."
Colorado law allows a foreclosure to continue even if the lawyer gets it wrong -- and doesn't hold anyone accountable for the mistake. It's a crime in Nevada, one of the states to use deeds of trust like Colorado.
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Great example of public policy makers letting the banks and mortgage servicers make whatever public policy they want. Now maybe the people will change it.
2 comments:
The statement by the attorney is simply not true. Virtually NONE of the nonjudicial foreclosure statements have any evidentiary or "proof" requirements.
Some states require a statement by the lawyer, some require nothing. In Texas the servicers are adamant that they don't have to show or prove anything to backup the claims made in notices of foreclosure. Instead of going on the defensive, however, more homeowners are alleging fraud based upon the misrepresentations made by servicers and "trustees" prior to and at the foreclosure sales.
"Lowell Sun Online" (Massachusetts)
The original article is from the Denver Post (Colorado), at
http://www.denverpost.com/business/ci_20287488/failed-bill-foreclosure-filing-colorado-may-get-second
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