As Denver’s clerk and recorder, I returned more than $2 million in excess funds in 2015 to people who lost their homes in foreclosure.
But “finders” try to take some of that money from the people who need it most. These people tell those whose homes sold at a foreclosure auction that the only way to get the excess funds is to pay the finder to get it for them.
Properties that sell in a foreclosure auction are selling at higher and higher prices. Often that means the property sells for more than was owed. The difference in the selling price and what is owed is called excess funds.
Excess funds belong to the people who went through foreclosure, and my office gladly gets those funds back to them free of charge.
Finders tell people that we’re sending the money out of state. Finders tell people that we don’t want to give them the money. Finders contact people before their home is even sold and persuade them to give the finder money to use their services — unnecessary services.
State Rep. Beth McCann and Sen. Cheri Jahn are sponsoring House Bill 1090 to rein in finders. The legislation requires that a contract clearly state that public trustees do not charge a fee for excess funds and that the owner can get his money without a finder.
“We need to protect people who have just lost their homes from further injury inflicted by scammers who sell them a service they don’t need for a price they certainly can’t afford,” McCann said.
The legislation will limit the finder’s fee to no more than 20 percent. It also says finders can’t go after owners for six months after the sale.
By state statute, public trustees are required to send a letter about any excess funds after the sale of the property. That’s the extent of the search required. We’ve worked with the City Council and the media. I’ve used social media, attended town hall meetings, and contacted registered neighborhood organizations to try to find owners.
People who lose their homes have likely suffered a loss: loss of a job, loss of health, or loss of a spouse or partner. And now they’ve lost their home. They can’t take any more bad news — and that’s all they think a letter from my office is going to provide.
They don’t read the letter that says their house sold for more than they owe, and that we have $1,000 or $100,000 to give them.
We don’t have any illusion that this money will fix their lives and make it whole again. But it can help.
This legislation will help ensure that homeowners get the money coming to them, not just a small percentage. It will get more money directly into the hands of the people who need it most. It provides safeguards, helps build the economy and provides a small step toward self-sufficiency.
You might know someone on the excess funds list. We currently have more than $2.1 million in excess funds we’re holding for people.
There is no cost to these people to get their money.
Please check the list at . Click on “Foreclosure & Auction Information,” then “Did Your House Sell?” The current list of properties with excess funds is there, along with the claim form and instructions.
Debra Johnson is the elected clerk and recorder for Denver.
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