Lawsuit to take Aurora woman’s house is guaranteed, bank says

The owners of an Aurora woman’s mortgage said they absolutely will file a foreclosure lawsuit to take her house because of claims that Colorado’s public trustee process is unconstitutional.

In a request to dismiss a federal lawsuit against them, lawyers for U.S. Bank on Thursday said they’ll pursue a foreclosure against Lisa Kay Brumfiel in Arapahoe County District Court “to remove any due process concerns” that come from a public trustee foreclosure.

U.S. District Judge William J. Martínez stopped the Arapahoe County public trustee from auctioning the house until he could hear evidence that Brumfiel’s constitutional rights were violated.

U.S. Bank is the trustee for an investment trust that owns the rights to mortgages bundled into securities that were sold in 2007 and included Brumfiel’s note.

The trust ownership, which is made up of a consortium of investors over which there is a servicer who collects homeowners’ payments and U.S. Bank as the trustee who distributes the proceeds, wants the case dismissed because it says the constitutional question is moot because it withdrew the public trustee foreclosure it began in October 2011.

Additionally it consented to a permanent injunction against pursuing Brumfiel’s house via the public trustee foreclosure process.

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