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Not long after 63-year-old Barry Gragert lost his job and his savings while caring for his dying wife, he knew his home would be lost to foreclosure (Denver Post). Once evicted, he lived in his car at Cherry Creek State Park for months before being able to afford a tiny apartment with his Social Security check. He had no idea officials in Arapahoe County were holding more than $50,000 for him following the sale of his house. Gragert is among dozens of homeowners across the Front Range collectively owed more than $653,000 since 2008. The problem? Administrators are only required to send a notice to the former homeowner’s last address (likely the home from which they have been evicted) and publish a notice in a local paper—a process with which the former homeowner is probably not aware.
Meanwhile, a legal settlement appears to be ahead in the wake of a foreclosure scandal over “robo-signing”—or the careless review of foreclosure paperwork. “The servicers themselves acknowledge there have been very serious problems in foreclosure servicing,” says Colorado Attorney General John Suthers (New York Times).