March 14, 2012
(Denver) – A bill to protect homeowners and ensure that banks and lenders prove they have the legal right to foreclose was killed in the House Economic Development Committee today. The bill, lauded by consumer advocacy organizations across the state, was sponsored by Rep. Beth McCann (D-Denver).
This bill, HB12-1156, required foreclosing parties to produce documentation that demonstrates they are entitled to execute a foreclosure on a borrower. Right now, holders of evidence of debt can foreclose without proof of legal standing, simply by providing a statement from the holder’s attorney that the holder’s interest in the property is valid.
The bill was supported by a broad coalition spanning the political spectrum, including the Colorado Progressive Coalition and the Independence Institute.
“This bill was a common-sense solution to a problem faced by many Colorado families during these tough times,” Rep. McCann said after the 5-8 vote. “It’s a shame that the committee didn’t see a compelling reason to increase transparency for Colorado homeowners facing foreclosure, despite hours of emotional testimony from Coloradans who lost their homes.”