US judge writes off £300,000 arrears and mortgage
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A New York judge has wiped out $500,000 (£300,000) of arrears debt and has given a couples’ home to them mortgage-free after claiming their lender’s behaviour was shocking and harsh.
Judge Jeffrey Spinner ruled that their lenders’ behaviour had been “harsh, repugnant, shocking and repulsive” according to The Times today.
Greg and Diane Horoski had ended up in negative equity after house prices crashed. They ended up owing thousands of dollars more than their bungalow was worth and went to court expecting to be repossessed.
But the Judge said that the lender IndyMac Bank, which is a division of California-based OneWest Bank, must be sanctioned to deter it from behaving in such a manner again.
The decision offers hope for millions of Americans who are in arrears and face losing their homes. The problems arose when lenders started handing out high-interest mortgages when house prices were at their peak.
The Horoski’s bungalow is worth around $275,000 but IndyMac claims that with interest and penalties the couple owed more than $527,437.
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Readers' comments (2)
Anonymous | 26 Nov 2009 7:46 pm
I am happy for this couple and I hope Indymac Bank can be more helpful for I am in the same position and so far no help. Modification has been going on over a year with refusal everytime with some lame excuse. I am so tired of their behaviour which is rude and totally uncaring whether you lose your home.
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Anonymous | 27 Nov 2009 7:52 pm
Thank you Judge Spinner for standing up for us little people. You're understanding and compassion is a breath of fresh air and give us hope. I/we are so frustrated with our mortgage companies...they just want their money and don't give a damn on any of us that are struggling and asking for help BUT yet they had no problem accepting bailout money from the gov't not too long ago...AND INSTEAD OF HELPING THE AMERICAN PEOPLE THEY CONTINUE WITH THEIR HIGH SALARIES AND BONUSES!!! Shame on them!!!
As for Mr. and Mrs Horoski, I'm very happy for you and hope that OneWest's appeal is denied.
It's been a long road for me, I knew back in October 2008 I was heading for financial hardship come early 2009. I was proactive and contacted my lender monthly telling them I needed help but until I missed a payment they wouldn't do anything. With my credit score in the high700's as of June 2010 it has now dropped to a poor rating as I could only make partial payments anymore. I'm now in the final stages of the loan mod...it's been a long, stressful road, where my credit has been ruined but on the other hand I still have my home.
Good luck to all of us in this hard economy time.
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