Lawsuit claims law firms charged unnecessary fees to those facing foreclosure

Lawsuit claims law firms charged unnecessary fees to those facing foreclosure

COMMERCE CITY, Colo. — Linda Donna sits in her Commerce City home, looking out front her living room window. “This is my sanctuary,” she said with a smile on her face. “This is where you close the door; all the madness is outside and it doesn’t have to be brought in here.”

The former telecommunications specialist claimed she lost her job because of her age. “It was a forced retirement,” she said. The economy and the lack of job opportunities made it difficult for Donna, 61, to find work. “But I still had to maintain properties; I was using my savings.”

Donna is one of the many in Colorado who faced foreclosure during the height of the housing crisis. According to data by the Colorado Division of Housing, more than 160,000 homeowners had foreclosure filing against them between the years of 2008 to 2011.

As part of the foreclosure process, Donna was charged $125 for a posing on her front door. The posting, which is required under Colorado law, gives homeowners a chance to cure the debt to the bank by giving them counseling.

Donna, along with two other homeowners, have filed suit against the state’s biggest foreclosure law firms claiming the $125 posting fee was inflated. In the lawsuit, her attorney claims the fee should have been $25. “If you can’t pay the primary, how do you pay all these fees?” she asked FOX31 Denver Investigative Reporter Tak Landrock.

The office of Colorado Attorney General John Suthers is also investigating the foreclosure law firms. His office is trying to find out if the Aronowitz Law firm , as well as the Castle Law Group, which normally compete for business, conspired to raise the foreclosure posting fees.

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