Colorado Homeowners Sue Over Unlock Home Equity Deals

Colorado owners of Unlock home equity agreements should review repayment terms and obligations on their contracts.

Updated on Nov. 3, 2026 in Residential

Colorado Homeowners Sue Over Unlock Home Equity Deals

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A Colorado homeowner, Sheila Johnsen, has filed a class action against Unlock Partnership Solutions and co-defendants over home equity agreements that allegedly functioned as disguised mortgage loans. The lawsuit, filed in October 2026, names Unlock Partnership Solutions, Unlock Technologies, Wilmington Savings Fund Society, and U.S. Bank Trust National Association as defendants.

Why it matters

Home equity agreements are sold as alternatives to traditional mortgages, so Colorado homeowners who used them may face obligations they did not expect. The complaint alleges the structure was designed to avoid state lending rules, which is why it reaches homeowners' loan protections rather than just contract terms.

The complaint lists 13 claims against Unlock and its co-defendants, and alleges a 19.9% annualized cost limit that exceeded Colorado's interest rate cap for unsupervised loans. Unlock's contracts require repayment within 10 years and span nearly 100 pages.

The players

Unlock Partnership Solutions

A company that offered home equity agreements marketed as alternatives to traditional mortgages, now named in a class action.

Halperin Petersen & Mikkilineni LLP

A law firm founded in July 2026 by three former CFPB enforcement officials, representing homeowner Sheila Johnsen.

Eric Halperin

A former CFPB enforcement division leader under the Biden administration, now associated with the firm representing the plaintiff.

The details

Unlock offered homeowners cash advances secured by deeds of trust on their homes, with repayment required within 10 years. According to the complaint, the agreements allowed Unlock to receive up to twice the percentage of a home's value that it initially advanced. Homeowners were also required to cover property taxes, insurance, maintenance, and other fees under the contracts.

Oct. 1, 2026: Johnsen v. Unlock Partnership Solutions Inc. case date listed.
July 2026: Halperin Petersen & Mikkilineni LLP founded by three former CFPB enforcement officials.

The Home Front

The lawsuit challenges home equity agreements against Colorado's interest rate cap for unsupervised loans, a state-law benchmark that governs how lenders structure home-secured credit. Its outcome will show whether alternative home-equity products can operate outside traditional mortgage rules.

If you have a home equity agreement with Unlock or a similar provider, review your contract for repayment terms and total obligations, and keep it on file. Consider a consultation with a licensed attorney or housing counselor before making decisions about your agreement.

The takeaway

Home equity agreements can carry obligations beyond a simple cash advance, including repayment within 10 years and homeowner-paid taxes and insurance. Before signing any similar contract, have a licensed attorney or housing counselor review the full document.