Suthers alleges fraud in foreclosure suits

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Highlights:

  • AG John Suthers targets law firms in foreclosure lawsuits.
  • Foreclosure suits alleges inflated foreclosure cots
  • Foreclosure suits against law firms have brought in $12 million, so far.
Colorado AG John  Suthers targets law firms in latest foreclosure lawsuits.

Colorado AG John Suthers targets law firms in latest foreclosure lawsuits.

Colorado Attorney General John Suthers today announced he has filed civil lawsuits against law firms that inflated foreclosure costs, hurting everyone involved in the process.

One action was against foreclosure law firms Robert J. Hopp & Associates and the Hopp Law Firm.

Named in the lawsuit are its principal Robert Hopp and affiliated title company National Title.

Sutheres also sued the Vaden Law Firm, including its principal Wayne Vaden and affiliated title company City Park Title.

The firms and their affiliated businesses are accused of inflating foreclosure costs charged to homeowners and others in violation of the Colorado Consumer Protection Act and the Colorado Fair Debt Collection Practices Act.

The lawsuit against the Vaden law firm alleges that Vaden inflated foreclosure costs for postings, court filings, and title beyond the actual cost or the market rate of those services.

The lawsuit against the Hopp law firms alleges that the firms routinely collected on average between $1,200 and $1,400 in premiums for non-existent title insurance policies by ordering title products through their affiliated title company.

Such alleged fraudulent costs were paid by homeowners, mortgage servicers, successful bidders, investors and insurers, including those that are taxpayer-backed, according to Suthers.

“For abusing the foreclosure process for their own profit, eight Colorado foreclosure law firms have now been targets of investigation by my office,” Suthers said.

“It is my hope that these actions will result in greater transparency and fairness in the legal processing of foreclosures,” Suthered continued.

Five of the eight Colorado law firms that he has sued so far have resulted in almost $12 milion in settlements.

Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee Co. and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.

 

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John Rebchook

John Rebchook has more than 30 years of experience in writing and communications. As the Real Estate Editor for the Rocky Mountain News, he wrote about residential and commercial real estate for 26 years. He has won numerous awards for business stories and columns that he wrote, both as an individual and part of teams. In addition to real estate, he also covered economic development, banking and financing, the airlines, and cable TV for the Rocky. In addition, he was one of the original freelance writers for GlobeSt.com, covering commercial real estate for the Internet publication.

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