At the risk of losing their homes if they didn’t, scores of Colorado homeowners struggling to avoid foreclosure in the past year were each forced to pay hundreds of dollars in lawyer charges for phantom court cases against them, a Denver Post investigation has found.
Those charges, which homeowners in the state’s largest counties unnecessarily had to pay to bring their property out of the foreclosure process, totaled more than $40,000. The law firms billed the charges to be reimbursed for having filed the lawsuit and posted a legal notice about it, records show.
Although the fees were very real, the cases and the notices were not.
The Post found 126 foreclosures since January 2012 in which homeowners in 11 counties were told by county public trustees to pay the charges associated with the filings or the foreclosure would continue. But, in fact, no foreclosure lawsuit was filed.
The Post also found that the practice has been going on at least since 2006, according to random checks of prior years’ District Court and county public-trustee records.
Read more: Foreclosure lawyers charge some homeowners for nonexistent cases – The Denver Post http://www.denverpost.com/realestatenews/ci_23885908/foreclosure-lawyers-charge-some-homeowners-nonexistent-cases#ixzz2cNyViBOT