AG Suthers joins all other states in probe of foreclosure procedures

Colorado will join the rest of the states in the union in an effort to investigate the procedures used by lenders to foreclose homes.

The main objective of the probe is to determine whether lenders, loan servicing agencies, or those who represent them have submitted legal pleadings in foreclosure cases that wrongly attest to the accuracy of claims that the party seeking foreclosure owns the note.

"Homeowners have a right to know that when their banks or lenders foreclose on their homes that all of the information used in the process is correct,” Suthers said. “I signed onto this multi-state effort for the fundamental reason that we need to ensure the integrity of Colorado’s foreclosure process."

Concern about the possibility that lenders have misled state courts on the question whether the statements in affidavits are accurate led to an attempt in Congress to validate their actions.

Legislation that would give lenders cover for errors contained in affidavits, and which would have the effect of accelerating foreclosure cases, was pocket-vetoed by President Obama earlier this month.