Thousands of Colorado homes were taken in foreclosure in recent years by banks that probably never had the right to do so because no one bothered to challenge the process, said a lawyer who worked for the state’s biggest foreclosure law firm.
Lawyers often blindly sign a document attesting that the bank they represent has the right to foreclose — allowable under Colorado law — without ever actually seeing the original loan documents, attorney Keith Gantenbein said. He worked at Castle Stawiarski, where more foreclosure cases originate than any other law firm statewide.
Gantenbein said he and other lawyers signed “tens of thousands” of documents known as statements of qualified holder. The papers certify lenders’ right to foreclose, generally with little more than an e-mail from a bank or loan servicer telling the lawyers to file the case.
Julie Hayden FOX31 Investigative Reporter
June 25, 2010
WHEAT RIDGE, Colo – The Wheat Ridge woman who had the Bank of America sell her house out from under her could be getting her home back.
On Thursday FOX31 News first reported 61-year-old Stephanie Martin’s story. She’s lived in her home for 20 years and now takes care of her 84-year-old mother and 7-year-old granddaughter.
Martin never had any trouble making her house payments, until last June when her legs were crushed in a horrible accident at the Target store where she worked.
She applied for and was accepted into a Freddie Mac program that lowered her mortgage payments and stopped any foreclosure proceedings.
“She is the poster child for this type of program. Somebody who is doing everything they can but, hit some hard times and needed a little bit of help,” her lawyer, Darrell Damschen says.
But, even though her participation in the program was supposed to stop all foreclosure proceedings, Bank of America earlier this month sold her house at a foreclosure auction, to itself.
Martin says they never sent any warning or notification. And she found out about the foreclosure only after her lawyer coincidentally saw the public notice at the courthouse.
“I think this is a situation where the Bank of America made a mistake,” says Damschen. “They’re not communicating internally at all.”
“It’s clear the sale could have never been appropriate,” he adds.
For nearly a month, Martin unsuccessfully tried to get some answers or help from the Freddie Mac program and the bank.
After she contacted FOX31 News and KHOW Radio Talk Show host Peter Boyles, her case received attention.
She and her lawyer say the Bank of America called them Friday and said they are going to rescind the sale and give Martin her house back.
They indicated they will also work with her to keep the lower house payments.
Martin is relieved, but says after all she’s been through, she’ll believe it when she sees it.
“I hope this is true because I’ve been told so many things.”
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