Claim forms sent to Colorado foreclosure victims

By The Associated Press
Tuesday, September 25, 2012

DENVER — Colorado Attorney General John Suthers is sending claim forms to borrowers who lost their homes to foreclosure between 2008 and 2011 who may be eligible for payment under a national mortgage-foreclosure settlement.

Suthers says the forms are going to borrowers who had mortgages serviced by GMAC/Ally Financial, Bank of America/Countrywide, Citibank, JPMorgan Chase and Wells Fargo. The nation’s five largest mortgage servicers agreed to the $25 billion settlement with the federal government and 49 states.

Colorado expects about $51 million.

Suthers says the payments are compensation for alleged illegal conduct and servicing abuse.