Colorado Receives Millions In Foreclosure-Relief Settlement

Colorado will receive $204.6 million in a foreclosure-relief funds under a multistate settlement.

It’s part of a $25 billion settlement with 49 states over foreclosure abuses that took place after the housing bubble burst.

The nation’s five largest mortgage lenders, including Bank of America, JPMorgan Chase, Wells Fargo, Citi and Ally, agreed to the settlement Thursday. They will have three years to fulfill the terms of the landmark deal.

In the settlement, Colorado will receive $73.3 million that will be available to grant principal reductions on loans to make a modification possible. The state will get $52.5 million in cash, $46.3 million in refinancing benefits to underwater borrowers; and, $32.49 million in payments to homeowners who lost their homes to foreclosure between January 1, 2008 and December 31, 2011.

The deal also ends a separate investigation into Bank of America and Countrywide for inflating appraisals of loans from 2003 through most of 2009. Bank of America will pay $1 billion to settle that federal probe.

Click here to see if you are eligible for a settlement.