A Note in Regards to the Killed HB12-1156

The past couple of weeks have been quite busy. As most of our blog followers know, I was helping draft Colorado’s bill, HB12-1156 sponsored by Representative Beth McCann.

Yesterday, I testified before the House and Business Development Committee as a proponent of the bill.

As written in the 3/13/2012 Denver Post, “Honor system for foreclosure paperwork has led to illegal Colorado seizures, lawyer surmises”, I was widely quoted. I stated “my discomfort at signing documents when there was no way to verify information provided.”

Although everything I signed, and everything I did while working at my former firm, I followed the law completely, which is at the heart of the bill. The law, as it is written and followed now, needs to be reverted back the way it was in 2006 to even the playing field between the homeowner and the lender.

I felt it necessary to stand up and speak out about how the current law puts the homeowner at a great disadvantage. The 2006 law was written by the lender attorneys and clearly favors the banks. I was ethically bound to follow that law – but I personally disagree with it. I am hoping that my efforts in speaking out will help change it.  Asking lenders to provide proof of document ownership is not a radical concept. Most other states have already adopted and implemented similar laws; Colorado is behind the times in this process. This heightened requirement of proof of document ownership is a recurring requirement in both the Attorney General’s settlement and independent audits.

Yesterday, a report was issued by the Inspector General’s office at the U.S. Department of Housing and Urban Development (HUD) which said, in part, “Managers at major banks ignored widespread errors in the foreclosure process, in some cases instructing employees to adopt make-believe titles and speed documents through the system despite internal objections.”

I’ll be writing a lengthier article on this important report that also states the banks are dragging their feet providing needed information to the IG, HUD.

And I will continue all my efforts to help homeowners.

Keith A. Gantenbein, Jr. is a Colorado foreclosure defense attorney located in Denver and servicing all of Colorado. He also handles bankruptcies, mortgage negotiations, lender liability, real estate, civil litigation, contracts and landlord/tenant. If you think you will be facing foreclosure, or are in the foreclosure process, or have had a wrongful foreclosure, contact Keith Gantenbein at (303) 618-2122 for a one-hour consultation where he will discuss your situation and go over all your options with you.

About theglawfirm1

Gantenbein Law Firm is a Denver, Colorado Tax Law Firm, servicing all of Colorado. Gantenbein Law Firm also specializes in Colorado Real Estate Law, Colorado Foreclosure Defense, Wills & Trusts, and Business Law.
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2 Responses to A Note in Regards to the Killed HB12-1156

  1. LM says:

    Thank you for your efforts to alert those in Colorado to the inequity surrounding real property law. That existing laws were changed in 2006 suggests to at least this reader that a legal foreclosure process, with the true owner initiating the action, was daunting enough for bank lawyers (and banks) to succeed in a preemptive strike, a real blow to Colorado homeowners, and to real property law.
    If you would make public a list of those “representatives” who declined to enact this bill (the bill appears merely to encourage following the law, via a legitimate ownership paper trail) it would be very helpful, come election time.
    There is absolutely no possibility that these individuals represent the best interests of those who foolishly elected them; let’s not make the same mistake again.
    It’s amazing that Colorado has become, in the foreclosure arena, so anti-consumer, and pro bank, despite the certainty that the banks and their lawyers have made a mockery of the process. Time to get people in play who actually serve those who elect them.
    There is nothing special about this bill- it is simply an effort to make banks follow real property law requirements. How on earth could an elected official take issue with following the law? Truly disgusting.

  2. jana says:

    Rep. Beth McCann, D-Denver introduced and supported the bill.

    There were 8 who voted AGAINST the HB1156 bill, 5 voted for the bill.

    Those who voted against the HB1156:

    Rep. Spencer Swalm, R-Centennial
    Rep. Chris Holbert, R-Parker (and former President of Colorado Mortgage Lenders Association)
    Rep. Keith Swerdfeger, R-Colfax
    Rep. Libby Szabo, R-Arvada
    Rep. John Soper, D-Thornton
    Rep. Larry Liston, R-Colorado Springs
    Rep. Kevin Priola
    Rep. David Balmer, R-Centennial

    To get the full story on the vote, there’s a good article by David Migoya at the Denver Post. Go to:

    http://www.denverpost.com/commented/ci_20260678?source=commented-business

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