Bill & Mike are looking at new angles to block foreclosures

Bill Henry and I have been looking into whether we can use the awful "lack of notice" done by Adjustable Rate Lenders as a defense in court. We feel that this is appropriate in a regular district court setting, but may be more problematic in the normal Rule 120 setting. We hope to be able to crack this nut in the near future.

The issue is the language on the promissory note that says that LIBOR rates are used to determine the variable interest rate charged. This arcane index is actually the London InterBank Offering Rate. The notices in the docs a homeowner signs gives only a cursory explanation of LIBOR and then usually references the Wall Street Journal. I know of absolutely no instance where a homeowner brought a copy of the WSJ to a real estate closing and I know of absolutley no real estate closing where a copy of the WSJ was brought to the closing table. The Colorado Statute about this reads in part that a recognized defense occurs when the loan was made by " fraud that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms." C.R.S. 4-3-305. More later. Mike Robinson