Colorado Foreclosure Initiative Abandoned; Proponents to Push for Legislative Change Instead
As we noted in a previous post, critics of Colorado’s foreclosure process have been pursuing various avenues to reform parts of that process. They have been particularly focused on the “qualified holder” provision of Colorado statutes, which allows the foreclosing lender to state that it is the owner of the deed of trust being foreclosed, without producing the original documents to prove ownership. A bill that would have amended the statute to require documentation died in the Colorado legislature earlier this year. Proponents of the bill then started working on a ballot initiative that, if passed by voters in November’s general election, would have amended the Colorado Constitution to address this issue.
Those proponents recently announced they are not going to continue to pursue the ballot initiative, and will instead return to their original approach of pushing for legislative changes to the foreclosure statute. According to The Denver Post, the campaign director for the Colorado Progressive Coalition, which had been leading the charge, said she believes the group has built the support it needs to pass the change legislatively. A new bill is expected to be introduced in the next legislative session, which will begin in January.