Restitution checks, part of a settlement to homeowners overcharged by a foreclosure firm, are in the mail, state officials announced Monday.
Checks totaling about $450,000 have been sent to homeowners who were “improperly charged posting and title foreclosure costs” by the law office of Michael P. Medved, according to the Colorado Attorney General’s Office.
The AG’s office obtained the funds through a with the law office, which agreed to pay restitution to affected homeowners by making two payments of $500,000 each.
Homeowners of hundreds of properties statewide were overcharged by having to pay the law firm’s fees as part of making their mortgage current when they stopped their foreclosure through cure or reinstatement.
“A person’s home is a sacred space and the fear of losing a home due to foreclosure causes extreme mental anguish for any family,” said Colorado Attorney General Cynthia Coffman in a media release. “For a law firm to overcharge families at their most vulnerable time is reprehensible.”
A second $500,000 payment and reimbursement is scheduled later this year. The AG’s office will oversee distribution of the second portion to homeowners who stopped their foreclosure through a loan modification.
Kieran Nicholson: 303-954-1822, knicholson@denverpost.com or twitter.com/kierannicholson
