Coloradans get $207 million in mortgage relief

Colorado homeowners have received $207.4 million in mortgage relief under a landmark settlement over foreclosure abuses.

Colorado Attorney General John Suthers Monday announced that 3,700 struggling homeowners in the state received help under the agreement reached in February with five banks. Attorneys general from 49 states and the federal government forged the $25 billion settlement with Ally Financial Inc., Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co.

The relief came in the form of principal reduction and debt forgiveness to help reduce monthly payments or help with short sales, in which lenders agree to accept less than what the seller owes on the mortgage.

Nationwide, more than 309,000 borrowers have received some form of mortgage relief between March 1 and Sept. 30.