Foreclosure Dismissed- Mortgage Cancelled Due to Bank’s Bad Behavior

Justice Jeffrey A. Spinner, sitting in a Supreme Court Part in Riverhead, New York (Suffolk County), has recently ordered that a $292,500 mortgage be deemed “cancelled, voided, avoided, nullified and set aside”. He took this action due to the fact that IndyMac Mortgage Services, a division of One West Bank FSB and its representor were engaged in “harsh, repucnic, shocking and repulsive” behavior.

Greg Horoski and his wife, Diana Wano-Horoski, bought a four bedroom, three bath home 1994. They paid $178,000 for their home. They refinanced their home in 2004 for $292,500.

They eventually fell behind on their mortgage. Mrs. Horoski was in failing health. She had undergone triple bi-pass heart surgery in 2006.

Every two or three months Mr. Horoski would contact his bank for the purpose of avoiding foreclosure. He would advise them that he could make payments in various amounts. He asked if they would accept these payments as a good faith measure and that they reinstate the loan. Greg and Diana Horoski appeared at every court appearance. Court conference were rescheduled on five separate occasions due to IndyMac Bank’s failure to cooperate.

Judge Spinner’s decision indicated that IndyMac Bank displayed an intransiness in its continuing failure and refusal to cooperate with the court. The Judge said a bank officer who appeared on September 22^nd had a “Opprobrious demeanor and condescending attitude” . He would not accept any offer by the homeowners including an offer by their daughter to purchase the house.

The Judge further indicated on November 18, 2009 court conference the bank did not even know the specific balance due in owing of the house. The Judge felt due to the extremely inappropriate behavior of the bank, severe sanctions would have to be imposed to prevent the bank from engaging in further abuse. In the end, IndyMac Bank would not consider any loan modification arrangements. The bank has indicated they will appeal Judge Spinner’s decision.

Are you behind in your mortgage? Are you in foreclosure? Problems with your bank or mortgage company? The mortgage renegotiation and defense lawyers at the law office of Elliot Schlissel may be able to help you with these problems. Contact us by e-mail or call anytime at 1-800 344-6431.

Picture courtesy of ncbm.org.