Recently, several major national lenders have responded to the so-called “Robo-signer” scandal by announcing either freezes or new procedures relating to foreclosures in various states, including Colorado.
The impact of this national scandal may be somewhat mitigated by Colorado’s status as the lone state that utilizes the public trustee system. Even so, the effects of any decrease in residential foreclosures by banks could have a considerable impact on Colorado community associations by delaying the process whereby non-paying owners are replaced by new, paying owners following a bank’s foreclosure as well as potentially impacting the marketability of homes.
Altitude Community Law is exploring new collection strategies that may be useful for associations particularly impacted by this latest development. We’ll keep on top of this national story as it develops and make sure our clients are informed of its impact on their communities.