Sunday, June 9, 2013

Does Bankster's Switch From Non-Judicial Process To Judicial Foreclosure Lawsuit To Force Home Sale Violate Earlier-Granted Preliminary Injunction In Colorado Case? Judge To Decide

In Denver, Colorado, The Denver Post reports:

  • The federal judge poised to decide whether Colorado foreclosure laws are unconstitutional is taking a moment to determine whether lawyers still trying to take an Aurora woman's house are using a loophole to bypass the court.

    U.S. District Court Judge William J. Martínez on Tuesday gave lawyers for U.S. Bank until June 12 to prove they had not violated an earlier court order to leave Lisa Brumfiel's four-bedroom house alone until the constitutional question had been decided.

    Brumfiel filed an emergency motion to sanction the lawyers — foreclosure attorney Larry Castle and his Castle Law Group — and the investment trust that holds the note on Brumfiel's house. Brumfiel said they violated Martínez's earlier order to "maintain the status quo" while her federal lawsuit was pending.

    At issue is whether the bank and trust could rescind the foreclosure case that gave rise to Brumfiel's lawsuit, then file a new one in state district court using a different set of laws to accomplish the same thing.

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