``Brumfiel challenged the constitutionality of Colorado's most common foreclosure process, known as a Rule 120, which is a streamlined way for lenders to take mortgaged property when homeowners default.

A Rule 120 is actually a court hearing in which a state district-court judge first determines whether a homeowner defaulted on a mortgage and is not in the active military before signing an order to sell the property at public auction.

Brumfiel claimed the process was flawed in that it allows lenders to foreclosure without having to prove their legal right to do so. Lenders at one time were required to produce the mortage note that a homeowner signed, but a law passed in 2006 changed that, allowing lawyers to merely claim the banks had the authority.''

Comments: Be the first to add a comment

add a comment | go to forum thread