LISTEN UP Colorado Legislators: Today's Foreclosure Scandal News in the Denver Post: is the tip of the Iceberg. I've been telling Democrats and anyone else who would listen about it for years. Absorb this from the story: "Colorado Attorney General John Suthers said he was disturbed by what investigators uncovered, fostered largely by how the state's foreclosure system carried little oversight."
Think about that sentence: Our Republican AG is questioning the oversight of our laissez-faire foreclosure system!
Realize that Attorney Castle helped change the state foreclosure laws to his favor in 2006 and that there are homeowners throughout the state being unlawfully foreclosed upon with no documentation. The banks are literally stealing homes from borrowers where they are not even the party of interest and have no skin in the game. It is more difficult to repossess a car than a house in our state.
FIX THIS NOW!
"Colorado is the only state in the country that allows an unsworn statement by an attorney for a foreclosing party — without any penalty — to say, 'Trust me, judge, these guys are the qualified holder for this deed of trust,' " Federal District Court Judge William Martinez said last year. "Is there another state that has lowered the bar for a foreclosure any lower?"
One former attorney who worked for Castle testified in 2012 when some foreclosure law changes failed to get to a state House vote, said he routinely signed foreclosure documents with limited but legal underlying documentation – at the direction of his boss. He now works to defend homeowners in foreclosure cases.
It's time we quit listening to the Colorado Bankers Association," which is an accomplice in the foreclosure scam and pretends to represent banks in the state when in reality only 1% of assets represented by CBA are headquartered in Colorado (note Citigroup is a leading large-asset member of CBA who just cut a $7 Billion deal for a small part of their reported misdeeds in the mortgage securitization scam that should've been prosecuted under the RICO Act). Ask why the "Colorado" Lobbyst Arm of the CBA has to bank at the JPMorgan Chase Branch in Baton Rouge. (Pull up their actual filings on Tracer and click on View Filed Report at the bottom of this page).
Realize how the tables are being turned on MERS, the Mortgage Electronic Registration Systems, in some states that require all transactions of home ownership be recorded locally — not in an electronic database run by the banking industry who is complicit in the scam. We should be able to go to our County Clerk and Recorders office to see who owns property, but MERS has undertaken a bloodless coup to hold half of the nations ownership records in the bank-owned system. Colorado needs to require publicly recorded ownership documentation, just as Pennsylvania does. Earlier this month a court ruled that MERS must stand trial to determine how much money it owes that state for avoiding recording fees and that should be a requirement here. Don't buy that garbage about how interest rates are lower because of MERS, and remember it when it becomes impossible to get a clear title to property down the road (Hint: Don't believe you'll be safe with title insurance either).
It's time to fix the system and demand we treat the largest asset most of us will ever have with respect before the banks turn us all into renters of "their" houses.
FIX THIS NOW! Make it a Legislative Priority in 2015.
– Dennis Obduskey, Co-Chair, Progressive Democrats of Colorado