Judge awards a couple thier home.

[draggar]

A couple's home was foreclosed on but a judge awarded them their home after the bank's actions and attitude towards them.


http://www.nypost.com/p/news/local/j...Y58z6gu1AQbWMI

Spinner excoriated OneWest for repeatedly refusing to work out a deal, for misleading him about the dollar amounts at stake in the case, and for its treatment of the couple over months of hearings.
OneWest's conduct was "inequitable, unconscionable, vexatious and opprobrious," Spinner wrote.
He canceled the debt because the bank "must be appropriately sanctioned so as to deter it from imposing further mortifying abuse against [the couple]."

Interesting to see how this plays out and to see if it will happen more often or will this just be a one time thing?

[Mike Cruz]

I doubt this will be a one time thing, something very similar happened to one of my father's clients. He tried to work out several deals to help save his home, the banks were denying the deals left and right, were threatening to take his home, he was sending whatever payments he could every month and they were just sending the checks back to him stating that they wanted ALL the money owed in one lump payment or on X day they were going to have the sheriff's at his house and remove everyone from the home and take it over.

He fought it in court, presented his case as well as all the documents, the judge ruled in his favor and wiped 80% of the amount of owed on his mortgage and he was to pay the remaining 20% of his mortgage within 5 years at principle only, no interest.

This happens more than you think. Since all the falling out of the economy with lenders selling mortgages to different companies, etc. They sometimes lose the notes to the home mortgages and end up having to either come up with a new number that the home owner agrees with or wipes the debt.

I would suggest to anyone who owns a home and is making a mortgage payment to contact their lender and ask them to send you a copy of your mortgage note, payment history and balance owed. If they cannot come up with these documents, you have a very good case.

[stock_post]

Looks like - The Judge is good.

[Gerry]

It reads nice but I wonder if the judge overstepped his authority.

We'll find out if the bank appeals in this.

[JMJ]

The banks never loaned any of their own money or anyone else's for that matter. All loans are created out of thin air from your signature.

[Mike Cruz]

The banks never loaned any of their own money or anyone else's for that matter. All loans are created out of thin air from your signature.

While this is true most of the time. A lot of private investors also loaned out their own money, especially through 2006-2007. Some wanted a honest cash flow every month, others gave you a shitty deal and low amount of cash in hopes of you not being able to make payments and taking over your home for a very small price.

[JMJ]

While this is true most of the time. A lot of private investors also loaned out their own money, especially through 2006-2007. Some wanted a honest cash flow every month, others gave you a shitty deal and low amount of cash in hopes of you not being able to make payments and taking over your home for a very small price.

Who did investors pay money to? The banks. The little known secret is even your own deposits are lent back to you as credit. Months down the road they file a claim on your deposits claiming the funds were abandoned. All deposits are used as reserves to loan credit. It's one big scam and the game is over.. Most people just don't know or want to accept it yet..

[Mike Cruz]

Who did investors pay money to? The banks. The little known secret is even your own deposits are lent back to you as credit. Months down the road they file a claim on your deposits claiming the funds were abandoned. All deposits are used as reserves to loan credit. It's one big scam and the game is over.. Most people just don't know or want to accept it yet..

I think anyone who has there eyes open realizes this, but obviously until someone comes up with a better way that won't destroy our economy and country worse than it already is, nothing will / can be done.

Changing this system will create chaos... Anarchy will take over...

Survival of the Fittest!

[JMJ]

I think anyone who has there eyes open realizes this, but obviously until someone comes up with a better way that won't destroy our economy and country worse than it already is, nothing will / can be done.

Changing this system will create chaos... Anarchy will take over...

Survival of the Fittest!

There is a way but it doesn't suit those who don't want to actually earn a living or those who want to control. For instance if the system were to change then those sitting up in Washington right now wouldn't be getting paychecks for life.

[JuniperPark]

What a totally SLANTED article and post!

Did you miss the part where this "bad bank" gave the couple $292,500, taking a chance on them even though they obviously had unstead income?

And did you miss the part where this loan was against the home, so the proper title of this post should be "Judge awards a bank's house to deadbeat couple".

And yes, this stupid crap should be shot down on appeal, and criminal charges filed against the couple if they lied on their loan application in order to pocket the $292k.

[JMJ]

What a totally SLANTED article and post!

Did you miss the part where this "bad bank" gave the couple $292,500, taking a chance on them even though they obviously had unstead income?

And did you miss the part where this loan was against the home, so the proper title of this post should be "Judge awards a bank's house to deadbeat couple".

And yes, this stupid crap should be shot down on appeal, and criminal charges filed against the couple if they lied on their loan application in order to pocket the $292k.

The bank took no chances on anything. They never loaned anything. That's the point. A loan is made on your signature. I would be willing to bet that they couldn't produce proof of actual funds or a original note.

[Mike Cruz]

What a totally SLANTED article and post!

Did you miss the part where this "bad bank" gave the couple $292,500, taking a chance on them even though they obviously had unstead income?

And did you miss the part where this loan was against the home, so the proper title of this post should be "Judge awards a bank's house to deadbeat couple".

And yes, this stupid crap should be shot down on appeal, and criminal charges filed against the couple if they lied on their loan application in order to pocket the $292k.

Are you being serious when you say that the banks 'took a chance' with the couple? LOL?

How do you know these people were dead beats? How about just another couple losing their jobs/careers/savings/investments in this economy? I think there is some slanted comments in your argument... but then again, I didn't read the entire article.

[JuniperPark]

The bank took no chances on anything. They never loaned anything. That's the point. A loan is made on your signature. I would be willing to bet that they couldn't produce proof of actual funds or a original note.

Completely untrue.

They banks lose money when people default on their loans. In case you didn't notice, that caused massive bank failures starting last year, and they continue today. We just had a local bank go under a few weeks ago for this very reason.

Are you being serious when you say that the banks 'took a chance' with the couple? LOL?

How do you know these people were dead beats? How about just another couple losing their jobs/careers/savings/investments in this economy? I think there is some slanted comments in your argument... but then again, I didn't read the entire article.

Yes.

They made a massive loan to a financially marginal couple. That is clearly "taking a chance".

They didn't pay the loan as THEY agreed to do. That doesn't make the bank bad, it makes the COUPLE bad.

[Mike Cruz]

Yes.

They made a massive loan to a financially marginal couple. That is clearly "taking a chance".

They didn't pay the loan as THEY agreed to do. That doesn't make the bank bad, it makes the COUPLE bad.

I think this would be relevant if the couple had known the truth about their qualifications for the loan and IF they did NOT at least try to make a honest payment to the bank. If they did not know the truth about the loan and tried to pay anything they can and the bank declines it, that is on the bank and they deserve the judgment.

[JuniperPark]

I think this would be relevant if the couple had known the truth about their qualifications for the loan and IF they did NOT at least try to make a honest payment to the bank. If they did not know the truth about the loan and tried to pay anything they can and the bank declines it, that is on the bank and they deserve the judgment.

When you borrow money, you are REQUIRED to figure out whether you can make the payments, and you promise to give up the house if you can't.

This promise is spelled out in writing, signed by all parties, and notarized.

The judge, for no valid reason, allowed them to vacate that promise.

[draggar]

What a totally SLANTED article and post!

Did you miss the part where this "bad bank" gave the couple $292,500, taking a chance on them even though they obviously had unstead income?

And did you miss the part where this loan was against the home, so the proper title of this post should be "Judge awards a bank's house to deadbeat couple".

And yes, this stupid crap should be shot down on appeal, and criminal charges filed against the couple if they lied on their loan application in order to pocket the $292k.

6 years ago my wife and I got a mortgage to buy our current home. We always made the payments on time.

Over a year and a half ago my wife got laid off (under questionable circumstances). She has not been able to find a job since. She's been dog training and house sitting to help but it's still far less than what she was making before.

Now, her unemployment is out and we need to make decisions. I've called the bank several times to see if they would be willing to work with me on refinancing my mortgage. Our property value is about half of what we paid for our home.

Just because I've been current with my payments they are REFUSING to work with me.

I've done things the right way. We made cutbacks so we could continue to pay our mortgage. Our dishwasher has been broken for over a week now because we don't have the money to have someone come out to fix it. We were responsible and the bank REFUSED to work with us.

So, am I a deadbeat?

[Mike Cruz]

When you borrow money, you are REQUIRED to figure out whether you can make the payments, and you promise to give up the house if you can't.

This promise is spelled out in writing, signed by all parties, and notarized.

The judge, for no valid reason, allowed them to vacate that promise.

Loan Modification ~ Most, if not, all banks are required to do them now. Why default on a property and have to sit on them and wait for the country to bail you out when you own 10,000 houses and have no money?

Sorry, but I am going to defend the 'honest' home owner til the end considering my father owns a Loan Modification company and he deals with the banks daily. These people will lie and deny as long as they can til it gets to judgment and they are forced to do a loan modification. They think everyone is dumb and doesn't know the law, that is why they hire my father, he knows the law and he knows how to negotiate with them

So, am I a deadbeat?

No you are not, just another victim of our failed economy. PM coming your way.

[JMJ]

Completely untrue.

They banks lose money when people default on their loans. In case you didn't notice, that caused massive bank failures starting last year, and they continue today. We just had a local bank go under a few weeks ago for this very reason.

I use to own a mortgage brokerage. I'm quite familiar with banking practices there. They aren't loaning you anything. Part of the reason I got out of the business is because of all of the fraud going on around me. If they were loaning you something wouldn't they also be signing the contract? I'm not going to get into it all right now but I'll explain the fraud perpetrated on us all later. You speak of the global warming scheme and the health care scheme but what you don't realize is there are already similar schemes in play right now. Those schemes/frauds are being dismantled so these other schemes are being put in place to replace them.

[JuniperPark]

No -- you're paying your loan as you agreed.

You can always sell, and that gets you out of your loan. Obviously, there is going to be some pain related to some bad choices you made - you bought into a real estate bubble.

I know this sounds bad, but honestly, if you had made a profit on the sale, would you have turned over the profits to the bank? Of course not - buying into a bubble is a gamble. Worse, the gamble you took (buying into the rising bubble) inflated the price spiral a little more, contributing to your own demise. Even if you take a loss, it's unlikely that the loss will be more than if you rented the house for 6 years.

The people who acted the MOST RESPONSIBLY -- those who didn't buy into the bubble -- are those paying the highest price -- having to fund the bailout of the banks, funding the bailout of some homeowners, and STILL facing an overpriced housing market.

I do find it troubling that banks are only willing to work with people ALREADY behind in payments, that's a very short-sighted policy that rewards the most irresponsible.

I use to own a mortgage brokerage. I'm quite familiar with banking practices there. They aren't loaning you anything. If they were loaning you something wouldn't they also be signing the contract? I'm not ging to get into it all right now but I'll explain the fraud perpetrated on us all later.

When I had a home loan, the bank also signed the contract.


You ARE aware that banks are going under right now BECAUSE they are on the hook for defaulted home loans, right?

[draggar]

No -- you're paying your loan as you agreed.

You can always sell, and that gets you out of your loan. Obviously, there is going to be some pain related to some bad choices you made - you bought into a real estate bubble.

I know this sounds bad, but honestly, if you had made a profit on the sale, would you have turned over the profits to the bank? Of course not - buying into a bubble is a gamble. Worse, the gamble you took (buying into the rising bubble) inflated the price spiral a little more, contributing to your own demise. Even if you take a loss, it's unlikely that the loss will be more than if you rented the house for 6 years.

OK, we sell our home. We have roughly $100,000 left in our mortgage and if we're extremely lucky we can get $50,000 for it (extremely high foreclosure rate in my neighborhood - roughly 20%). Are you telling me that the bank will just eat the other $50,000 left?

We bought during a bubble for a home to live in, not an investment property, not a vacation home, but as our only residence. We needed to move her because it was the only place my wife could get a job *and* my company would let me transfer to. It was either that or stay someplace she couldn't get a job.

This brings up another issue: Where shall we live now? We have no money for a down payment, we cannot rent (since rental prices have NOT dropped - we're looking at LEAST $1500 a month for a place much smaller than where we are now - let alone finding a place that won't give us a hard time about my wife's service dogs (yes, I know that is illegal but it still happens). Our mortgage payment is about $1000 a month now so it would just be more expensive for us.