Banking groups challenge Colorado right-to-foreclose ballot initiative

Two of Colorado’s largest banking associations are digging in for what could be a protracted battle against a ballot initiative that would require lenders to prove their right to foreclose on property.

Currently, a bank can foreclose with just a lawyer’s signature without proof — such as a properly assigned mortgage — that it is owed the money.

Initiative 84 would require lenders to show proof of their interest in a mortgage or note before they could take someone’s property. They could do so either by having recorded with a county the note and its assignment, or by providing certified copies in court of its endorsement to them.

The Independent Bankers of Colorado, a trade group of community banks, says the issue should be handled legislatively, not as an amendment to the state constitution.

“This could be a long battle,” IBC executive director Barbara Walker said of the group’s commitment to challenge a ballot initiative.

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