Colorado Attorney General Cynthia Coffman said Monday her office began sending out restitution checks to homeowners that were improperly charged posting and title foreclosure costs by The Law Office of Michael P. Medved. Colorado Attorney General
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.