Shaun Zinck Jun. 25, 2015, 10:29am


DENVER (Legal Newsline) - About $450,000 in checks have been sent out by the Colorado Attorney General's Office to consumers who were improperly charged posting and title foreclosure costs by a now closed law firm, said Colorado Attorney General Cynthia Coffman.

The Law Office of Michael P. Medved, a former foreclosure law firm, was allegedly overcharging homeowners when they were required to pay the firm's fees in order to make their mortgage payments current after they had stopped a foreclosure through reinstatement or cure.

“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. For a law firm to overcharge families at their most vulnerable time is reprehensible,” Coffman said. “We will protect Colorado families from these practices and we want to send a message to other law firms who hope to profit from Coloradans’ distress.”

Coffman's office reached a $1 million settlement with the laws office, and in the agreement the firm was required to make two restitution payments to the affected homeowners. The payments are of $500,000 each, and the second payment is scheduled to be dispersed later this year. Coffman said the second portion will be given to homeowners who stopped the foreclosure through a loan modification.

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