POST Online Media Lite Edition



 

Colorado Springs company to pay for misleading in foreclosures

Staff Writer |
Colorado Attorney General Cynthia H. Coffman's office has settled a lawsuit against Austin Home Ventures, LLC dba Capital Asset Recovery dba Capital Realty, Bryan Jensen, Ethan Eaton aka Ethan Graham, Bailey Perez, and Billy Fuston.

Article continues below






The settlement requires defendants to pay $125,000 and includes injunctive relief to ensure compliance with the law and prevent future harm to consumers.

The lawsuit, filed in December 2015, alleged that Defendants failed to comply with the Colorado Consumer Protection Act and Colorado Foreclosure Protection Act when they offered to assist foreclosed homeowners in obtaining overbid funds.

An overbid occurs when a home is sold for more than the total amount owed on the mortgage loan.

Although homeowners can obtain overbid funds at no cost through the appropriate public trustee’s office, Defendants charged 20-50% of the amount of the overbid for their services and misrepresented the nature of the overbid recovery process.

Consumers who paid Defendants for their overbid recovery services will receive restitution under the settlement. The settlement also prohibits Defendants from acting as foreclosure consultants.

Additionally, the Attorney General asserted that three of these Defendants—Austin Home Ventures, LLC, Mr. Jensen, and Mr. Eaton—violated Colorado law when they misled distressed homeowners about the services they would provide.

Instead of helping homeowners, the Attorney General claimed that these Defendants rented homeowners’ properties to third parties and collected and kept rental payments without the knowledge or consent of the homeowners.

Many of the impacted homeowners were members of the military who needed to quickly relocate.

The settlement prohibits Defendants from acting as equity purchasers or entering into any agreement concerning real property that is either subject to a foreclosure or where the underlying mortgage loan is at least 30 days delinquent or in default.


What to read next

AG Coffman successful against largest foreclosure law firm in Colorado
Colorado unapproved drug and dietary supplement makers ordered to cease operations
Australia seeks penalties for Volkswagen Dieselgate