Homeowners Running "Everything Must Go" Foreclosure Stripping Sales May Face Criminal Liability In Colorado

In Aurora, Colorado, KUSA-TV Channel 9 reports:

• The "everything must go" sales are back and experts say they cost other homeowners money. The sales involve homeowners selling everything inside just days before it goes into foreclosure. 9Wants to Know found a woman selling fixtures in a condominium [...] Thursday morning. The Internet classified site Craigslist listed a sale at 10091 East Carolina Drive in Aurora.

• Experts say these sales cost banks money because they have to pay to install new fixtures in the homes before they resell them. Those repair costs are passed along to other borrowers. At Thursday's sale, our undercover cameras found plenty to choose from. Colorful price tags offered the refrigerator, the kitchen cabinets, the overhead microwave and the range. Items such as cabinets are traditionally considered part of a home.

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• While a house does belong to a homeowner until it goes on the foreclosure auction block, there is a state law that says it's illegal to defraud a creditor. "If you sell fixtures out of your foreclosed upon house, you can be sued. You can be charged with a felony or multiple felonies. It's not a good idea," [9NEWS legal analyst Scott] Robinson said. A class three felony carries a maximum of 12 years in prison. A person who strips a home ahead of foreclosure could also be charged with criminal mischief and theft, according to Denver District Attorney Spokeswoman Lynn Kimbrough. She says prosecutors will look at any case brought to them by police. People buying the merchandise will likely not be charged as long as they did not know they were buying items considered stolen. However, even if they paid for the items, buyers could be required to return them.

For more, see House stripping continues as foreclosures loom.

For another recent post on this issue, see Arizona Crackdown On Foreclosure Stripping Continues As Homeowner Indicted On Charges Of Defrauding A Secure Creditor, Criminal Damage.

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