A group of progressive organizations staged a mock foreclosure Wednesday at a Denver law office. They were protesting the legislature's decision not to reverse a state law that they say favors banks at the expense of homeowners.
This is a transcript of Pat Mack reports:
Reporter Pat Mack: The Colorado Progressive Coalition, Occupy Denver, moveon.org and the Metro Organizations for the People held the demonstration at the Castle Stawiarski law firm in downtown Denver. That firm processes more foreclosures than any other law firm in the state. Corrine Fowler of the Progressive Coalition said her group's attorneys signed paperwork attesting to the right to foreclose on the firm.
Corrine Fowler: it was just an illustration to show how ridiculous it is that you can take someone’s property with a lawyer’s signature.
Reporter: Fowler said attorney Larry Castle was instrumental in changing state law in 2006 so lenders no longer had to prove they had the right to foreclose. An attorney just had to attest to that fact. Castle did not respond to an interview request. The protest came a day after lawmakers rejected a bill that would've changed the state law. Bill supporters said now, there’s no way for homeowners to challenge a lender's right to re-possess their property. But Don Childears with the Colorado Bankers Association told a committee hearing, he knows of only two times when the wrong party tried to foreclose, and he says both errors were caught.
Don Childears: We actually have a good system in Colorado, despite what you’ve heard, and we think there are fewer problems here than anywhere else in the country.
Reporter: Childears said some lenders would stop writing mortgages if the bill passed. One Democrat joined with Republicans on the committee to kill the measure. The progressive groups say they’ll keep lobbying for the legislation.