150,000 homeowners who paid fees to try and save their home from foreclosure could be getting some of their money back.
On Tuesday, the Colorado Attorney General’s office filed suit against two of Colorado’s largest foreclosure law firms, The Castle Law Group and Aronowitz & Mecklenburg.
Colorado AG John Suthers alleges the firms colluded to raise the price of fees to make millions of dollars at the expense of homeowners.
The Aronowitz firm has agreed to settle the suit by paying $10 million and either sell or shut down the firm in the next six months. Some of the money collected could go back to homeowners who were forced to pay excessive fees.
The deal still needs to be approved by a judge, which could happen as early as August.
The state’s two-year investigation found that fees charged by the law firms exploited homeowners, banks and investors for up to $97 million dollars since 2006.
Castle Law declined comment on the allegations and, as part of the settlement, Aronowitz admits no guilt alleged by the Colorado Attorney General.AlertMe