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BaroqueMama
Chase is one!
Member since 5/05 27530 total posts
Name:
me
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Did anyone hear about the LI couple relieved of their mortgage?
I have to find a link to the story, but did anyone hear about this? Apparently, the couple had a hard time paying their mortgage for quite some time, so they only paid the interest. They tried to refinance or renegotiate their interest rate so they could afford their mortgage, but they never heard back from the mortgage company, even after trying for a long time to get in touch with them to resolve it. Well, apparently, a judge signed papers this week to relieve them of their entire 500K mortgage because their mortgage company wasn't willing to work with them.
I'm not sure if I have all the details correct, so I'll find a link, but curious how people feel about this?
Link
Message edited 11/26/2009 11:58:42 PM.
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Posted 11/26/09 11:47 PM  |
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Long Island Weddings
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LightUpOurLife
Totally in love
Member since 8/06 12785 total posts
Name:
Bonnie-Jean
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Re: Did anyone hear about the LI couple relieved of their mortgage?
I read about it as well. Don't know enough to form an opinion about it but I want to add that they had disabilities that made them unable to work. The house was worth about $275,000 but the mortgage was for $500,000+. Their daughter also offered to buy the house at fair market value to relieve the banks debt a bit.
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| Posted 11/26/09 11:50 PM |
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BaroqueMama
Chase is one!
Member since 5/05 27530 total posts
Name:
me
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Re: Did anyone hear about the LI couple relieved of their mortgage?
I'm really curious to hear what everyone has to say because I really don't know how i feel about it. I had no idea their daughter offered to buy the house at fair market value. That's interesting that I haven't heard that detail. (not that I looked that hard).
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| Posted 11/26/09 11:59 PM |
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steph4777
**************
Member since 5/05 11726 total posts
Name:
Stephanie
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Re: Did anyone hear about the LI couple relieved of their mortgage?
It was on ABC World News on Wednesday. The Judge presiding over the case felt that the actions of the mortgage company were "vexatious, unconscionable, etc..." and that they didn't make reasonable attempt to work with the couple.
DH was pretty surprised at the opinion and wanted to download it so he could read the whole thing. He's hoping to find some language in it for a foreclosure case that he has coming up.
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| Posted 11/27/09 12:08 AM |
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BargainMama
LIF Adult
Member since 5/09 15657 total posts
Name:
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Re: Did anyone hear about the LI couple relieved of their mortgage?
nevermind...don't want to open that can of worms 
Message edited 11/27/2009 12:52:27 AM.
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| Posted 11/27/09 12:42 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Did anyone hear about the LI couple relieved of their mortgage?
Onewest bank formerly known as indymac...I do a lot of work with people who have loans from them...most never should have been approved in the first place
I would bet there is a predatory lending issue with this loan...wouldn't be the first time
I have seen first hand some of the underhanded things they do...
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| Posted 11/27/09 9:18 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
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Re: Did anyone hear about the LI couple relieved of their mortgage?
Not that I think that people should be relieved of their mortgage...but if this couple tried in due diligence to work something out (I especially like how they were paying at least the interest) and the bank was stringing them along; I think the bank should have consequences for their inaction.
I'm not sure getting rid of the mortgage is the right answer...maybe reducing the interest rate to 0%? so they wouldn't make a profit.
I just hope it wakes the banks up to help the people trying to make right...and I hope that people/lawyers take advantage of this precident.
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| Posted 11/27/09 9:24 AM |
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Salason
♥
Member since 6/05 9878 total posts
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Re: Did anyone hear about the LI couple relieved of their mortgage?
Posted by Beth
Onewest bank formerly known as indymac...I do a lot of work with people who have loans from them...most never should have been approved in the first place
I would bet there is a predatory lending issue with this loan...wouldn't be the first time
I have seen first hand some of the underhanded things they do...
I'm thinking it HAS to be predatory lending too otherwise I dont see how the judge is getting around the abbrogation of contract.
Is Onewest under the Indymac receivership of the FDIC? It's strange if they are and they didnt help them bc the FDIC has been so pro loan-mod...
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| Posted 11/27/09 9:35 AM |
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maybesoon
LIF Adult
Member since 9/09 5981 total posts
Name:
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Re: Did anyone hear about the LI couple relieved of their mortgage?
the bank was not willing to work with them, the couple tried so I am happy for them. their life will be a lot less stressful now. there are some ppl who would have just kept living in the house and said eff it, I'm not paying
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| Posted 11/27/09 9:51 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Did anyone hear about the LI couple relieved of their mortgage?
Posted by Salason
Posted by Beth
Is Onewest under the Indymac receivership of the FDIC? It's strange if they are and they didnt help them bc the FDIC has been so pro loan-mod...
I have gotten many loans mod thru them...including one that had a sale date for next week
But these people still had income
The gov guidelines are strict and you still have to be able to pay the new modified amount- with them both not working...I could see how that could have been an issue
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| Posted 11/27/09 9:51 AM |
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smdl
I love Gary too..on a plate!
Member since 5/06 32461 total posts
Name:
me
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Re: Did anyone hear about the LI couple relieved of their mortgage?
I think those cases are on a case by case basis and I don't think it's fair to generalize this particular case because a judge allowed someone not to pay their mortgage.
I think they must have been a lot of documentation, proof of what was really going on with the lender and the homeowner for a judge to allow a homeowner not to pay their mortgage.
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| Posted 11/27/09 9:59 AM |
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annoyedTTCer
LIF Adult
Member since 4/09 3272 total posts
Name:
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Re: Did anyone hear about the LI couple relieved of their mortgage?
They shouldn't start celebrating anytime soon.
The bank is going to appeal the decision and will probably have the entire industry helping their case.
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| Posted 11/27/09 11:28 AM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Did anyone hear about the LI couple relieved of their mortgage?
Posted by steph4777
The Judge presiding over the case felt that the actions of the mortgage company were "vexatious, unconscionable, etc..."
Isnt this the case with alot of mortgages from the past couple of years??? Giving mortgages to people who should never have qualified in the first place. Giving refi's to people who couldnt afford them either.
My mortgage company tried telling me we could get a mortgage much bigger than what we took and my husband is a cop for the NYPD (and this was before they got their raise). If we listened to my bank, we would have been in the same place everyone else is, in foreclosure!
ETA: Even after this big mortgage blow up and the gov't keeping the mortgage industry "in line" I still think they are predatory and trying to make money any way they can.
Message edited 11/27/2009 12:00:09 PM.
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| Posted 11/27/09 11:58 AM |
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DancinBarefoot
06ers Rock!!
Member since 1/07 9534 total posts
Name:
The One My Mother Gave Me ;-)
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Re: Did anyone hear about the LI couple relieved of their mortgage?
For anyone that wants to read the full text of the judge's decision, you should be able to follow this LINK to get to it.
My two cents . . . Judge Spinner is a highly respected judge who does not reach decisions of this import without very careful thought and examination. Having read the decision in its entirety, and seeing egregious conduct of the bank that is detailed therein, I applaud the judge for having the courage to take the bank to task.
I know the bank/mortgage holder is going to appeal, but I sincerely hope that the 2nd Dept justices have as much courage and foresight as Judge Spinner and they uphold his decision. It was the correct outcome for all the correct reasons.
Bravo Judge Spinner!!! 
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| Posted 11/27/09 12:26 PM |
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Re: Did anyone hear about the LI couple relieved of their mortgage?
I know of this family. It's a very mixed emotion even with them. I personally am happy for them, but their family is worried about al the media and attention it is getting.
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| Posted 11/27/09 1:34 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Did anyone hear about the LI couple relieved of their mortgage?
This judge is horrible. What the hell is he thinking? He is personally trying to destroy the mortgage system?
I am sick and tired of these judges making stupid rulings just to "get their name out", or I guess in his works "to make a statement".
I'm sorry but if you don't pay your bills, expect to lose your house.
I am tired of everyone trying to look for a bailout. I don't expect anyone to forgive my mortgage.
This is a ridiculous ruling and I sure hope this gets turned around QUICKLY in appeals.
The judge should also be kicked off the bench IMO. Absolute horrible ruling.
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| Posted 11/27/09 6:54 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
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Re: Did anyone hear about the LI couple relieved of their mortgage?
I disagree with the ruling. I think there could have been a middleground like drastically reducing the interest rate to 2% or even ZERO since the bank was not trying to help. That would have sent a message--I think the bank will appeal and win or come to a more fair solution.
Message edited 11/27/2009 7:00:38 PM.
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| Posted 11/27/09 6:59 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Did anyone hear about the LI couple relieved of their mortgage?
Posted by jellybean1420
ETA: Even after this big mortgage blow up and the gov't keeping the mortgage industry "in line" I still think they are predatory and trying to make money any way they can.
The whole term of "predatory lending" is just ridiculous in general.
There is no such thing as predatory lending.
If you can qualify for a regular mortgage with a low interest rate due to good credit, good for you.
However what about the people with crappy credit? Are we all going to say they shouldn't be buying period?
That's where these so-called "predatory lenders" come in. They are willing to take on the extra risk of a crappy unsecure client by basically charging more for the mortgage.
Some people call this predatory lending. I call it getting what they deserve (or at least what they can qualify for). If they can only qualify for a mortgage that carries a 9 or 10% interest, then it is UP TO THE BUYER to make that decision if they feel like paying the premium on the mortgage interest.
There is no such thing as predatory lending. The whole Truth In Lending Agreement laws pretty much squash any sort of "predatory lending" as everyting regarding costs of the loans are drawn up for the buyers to see. If the buyers don't want to bother reading the fine print, well all I can say is too bad for them.
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| Posted 11/27/09 7:02 PM |
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BaroqueMama
Chase is one!
Member since 5/05 27530 total posts
Name:
me
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Re: Did anyone hear about the LI couple relieved of their mortgage?
I have to say that after reading more about this case, I have finally come to form an opinion. And quite honestly, I completely disagree with this ruling. I really think it was completely out of line for this judge to erase the entire mortgage. That's absolutely nuts. If you buy a house, you should be responsible for paying for it. I don't care what lengths they went to to make sure they didn't foreclose, they still owe the money on the house. They knew what they were doing when they bought it, and should be responsible for seeing out that commitment. That being said, I would agree with lowering the interest rate, as I do feel for the couple and the fact that they actively tried to find a solution to the problem. But then again, there's a million other stories out there just like this couple's, and what are we going to do, relieve all those people of their mortgages? I just think it's setting a bad precedence. I understand slapping the lender on the wrist, but the ramifications of it are pretty costly, imo.
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| Posted 11/27/09 7:29 PM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
Name:
XXXXXXXXX
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Re: Did anyone hear about the LI couple relieved of their mortgage?
I think the judge was trying to make a point. It appears the lender's conduct was egregious, to say the least.
However, it sets a dangerous precedent and I can't believe it will be upheld on appeal.
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| Posted 11/27/09 9:39 PM |
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Salason
♥
Member since 6/05 9878 total posts
Name:
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Re: Did anyone hear about the LI couple relieved of their mortgage?
[
Message edited 11/28/2009 8:31:43 AM.
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| Posted 11/28/09 8:31 AM |
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DancinBarefoot
06ers Rock!!
Member since 1/07 9534 total posts
Name:
The One My Mother Gave Me ;-)
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Re: Did anyone hear about the LI couple relieved of their mortgage?
Posted by ave1024
This judge is horrible. What the hell is he thinking? He is personally trying to destroy the mortgage system?
First of all, unless you know the judge personally, to say he is horrible is out of line. As to what the hell he was thinking, IMHO, his decision outlines EXACTLY what he was thinking. The bank LIED to the homeowners AND to him. The bank "pretended" to offer the family a deal and only after they were backed into a corner did they admit the homeowner did NOT default on the repayment agreement, but instead the bank didn't give it to them until after the first payment was due.
I am sick and tired of these judges making stupid rulings just to "get their name out", or I guess in his works "to make a statement".
Judge Spinner doesn't need to get his name out. He's been on the bench for years and was re-elected in 2008. He is also the judge involved in the building development along Jericho Turnpike is Westbury, so I hardly think he needs this to get his name in the paper.
I'm sorry but if you don't pay your bills, expect to lose your house.
I am tired of everyone trying to look for a bailout. I don't expect anyone to forgive my mortgage.
You are making an assumption that this couple was looking for a bailout, rather than just looking for the bank to abide by the new foreclosure laws.
This is a ridiculous ruling and I sure hope this gets turned around QUICKLY in appeals.
I for one hope the 2d Dept upholds the ruling. The bank's conduct was egregious, and they deserve to be penalized in a way that will prevent the behavior from repeating itself.
The judge should also be kicked off the bench IMO. Absolute horrible ruling.
Judge Spinner isn't going anywhere, nor should he. You personally may not like the ruling, but if you were in the situation that couple was in, you would be begging for someone like him to be handling your case.
Message edited 11/29/2009 5:07:31 PM.
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| Posted 11/29/09 3:31 PM |
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TaraVinny
my miracle coming October!!!
Member since 10/09 1049 total posts
Name:
Tara
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Re: Did anyone hear about the LI couple relieved of their mortgage?
wow i can't believe that. i didn't think judges could do something like that.
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| Posted 11/29/09 3:48 PM |
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timanda
Puppy Love
Member since 6/08 1627 total posts
Name:
Amanda
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Re: Did anyone hear about the LI couple relieved of their mortgage?
I definitely think they bank should be penalized, but to do so by completely relieving the couple of their responsibility to pay for the house that they bought sets a dangerous precedent. Why not fine the bank, separate from whatever relief the couple is granted.
Regardless of the lies they were told, they still agreed to buy a house, and should have some responsibility to pay for it, no?
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| Posted 11/29/09 8:17 PM |
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rojerono
Happiest.
Member since 8/06 13803 total posts
Name:
Jeannie
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Re: Did anyone hear about the LI couple relieved of their mortgage?
I'm with DancinBarefoot on this one.
Message edited 11/29/2009 9:30:03 PM.
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| Posted 11/29/09 9:29 PM |
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