Fed up Judge Erases Mortgage and Saves NY Couple from Foreclosure

A New York Judge sent a strong message to a California bank -enough is enough. When the Judge became annoyed and obviously frustrated by the bank's continual refusal to work out a loan modification with the distressed homeowners, he had enough. He erased a Long Island couple's mortgage calling the bank's actions repugnant, shocking and repulsive!

The decision wiped out the $291,000 in principal and $235,000 in interest and penalties on Greg Horoski and wife's Diane Yano-Horoski's home. According to reports the Judge had repeatedly asked the bank to to come to the table to work things out -which didn't happen.

When the couple struggled to meet their payment obligations due to Mr. Horoski's health problems, OneWest -- which is owned by a private equity group that bought IndyMac -- sued the couple as opposed to working out a loan modification. Judges have wide discretion in these cases and if a Judge feels there has been fraud or deception going on this is exactly the type of action that should be taken.

He sent a message to the bank, and mortgage servicers --and more Judges should follow his lead! The bank had received a helping hand from taxpayers when they welcomed $815+ million in bailout funds. Shouldn't they begin to return the favor by extending a helping hand to customers who need the same sort of assistance? Whether or not they get that concept -or the Judge's message, only time will tell. On another case the same bank is involved in, despite two California court orders instructing it to stop, it is attempting to foreclose on an 89-year-old.

Here's more on this story from BusinessInsider.com

For more info on homeowners getting loan modification run-around see earlier blog:

The Loan Modification Run-Around