Individuals and families who are having their homes foreclosed upon need to know that those who are taking back property actually have the right to do so. In Colorado, though, a lender can foreclose on a home simply by submitting an attorney's signature affirming that the lender is entitled to foreclose on a property.
The legislature should review Colorado's current laws that regulate the payday lending industry and limit predatory mortgage lending with the goal of strengthening both statutes. We should adopt stricter standards for payday lenders, including capping finance charges, prohibiting borrowing from one payday lender to pay off another, and eliminating special protections for payday lenders. Colorado also should adopt provisions to protect families that buy or refinance their homes.
SB 06-071 would create a positive opportunity for Coloradans. By providing more information to people whose homes are in foreclosure or are about to be foreclosed and prohibiting certain unconscionable business practices, fewer people are likely to be cheated out of their homes.