Colorado’s Foreclosure Process Receives Backlash

by San Antonio Attorney

Critics have described Colorado’s foreclosure process as ‘fundamentally broken’ and requires immediate overhaul during a public hearing last Thursday.

However, a legal representative for the bankers and lenders told the seven members of the Supreme Court of Colorado that the system of foreclosure requires no change at all.

One of the major issues discussed is whether the court will modify the process of Rule 120.  This serves as a critical phase in the foreclosure of houses, which a lender will request the judge’s approval of the sale.

During a public hearing, six people gave out their personal opinion towards the Rule 120 hearing.

Michael Berger, the designated Judge of the Colorado Court of Appeals, said that this was the most important aspect in the rules of civil procedure.  Repeated modifications to the processing of Rule 120 have made it disorganized.

Berger added that almost 97 percent of those who contested Rule 120 were homeowners.

Almost 195,000 of house in Colorado were placed through auction foreclosure sales from 2003-2015.

Keith Gantenbein, a lawyer who used to handle property foreclosures and currently represents homeowners, said that he has seen a lot of people who still get booted out of their home despite complying with the court summon.

Gantenbein added that these changes are intended to honor intent of due process.

Homeowners facing the problem of foreclosure said that they could not do anything during a Rule 120 hearing.  Most of these homeowners claimed that hearings only determined if they were in default or in active military service.  Other factors such as determining whether the bank is in charge of the mortgage will depend on the courtroom.

On the other hand, Attorney Dan Delaney clarified that bankers and lenders are not convinced of the underlying problem with homeowners’ foreclosure issues.

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