Your "mortgage is canceled, voided, nullified, set aside and is of no further force and effect" were the terse words of New York's Suffolk County Supreme Count Justice Jeffrey A. Spinner when he wipped out the mortgage that Greg Horoski and Diana Yano-Horoski had with IndyMac Mortgage Services, a division of OneWest Bank F.S.B. Read the full story here "Judge cancels LI family's mortgage, berates lender" or here "Judge Voids Mortgage Due to Bank's "Bad Faith". The judge also ordered "that the lender and its successors are 'barred, prohibited and foreclosed from attempting, in any manner, directly or indirectly, to enforce any provision of the mortgage loan'."
At first glance it looks like the Horoski's are winners! Or are they? The bank could appeal the ruling and seek to reinstate the mortgage, then force them into foreclosure again. Judge Spinner's decision makes it clear that he thought that the bank had no intention of faithfully negotiating a loan modification and preferred foreclosure over other remedies. In a world were "you pay you stay, you don't you go" with no in-between, Judge Spinner's ruling should make it clear to banks that they need to negotitate with struggling homeowners and use foreclosure only as the very, very last resort.
Big business doesn't always win over the little guy. And the Horoski's will likely be grateful for the ruling for many years to come. Does this open the floodgates for others homeowners distressed ... maybe ... maybe not. This was probably a stressful situation for the Greg and Diana Horoski with an unexpected outcome. Athough it's doubtful that other banks will learn from this lesson, maybe there's hope for distressed homeowners caught between a rock and hard place.
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Stephen Howell came to Annapolis to sail the Bay in 1994. What he discovered was a whole new lifestyle. Ever since Stephen Howell has been successfully helping others make the most of Annapolis. You'll find that with the right professional by your side, you can Live the Lifestyle and Live in Annapolis.
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A lady in my office was trying to negotiate with Indy Mac and the rep during part of a conversation said.."We don't have to tell you anything and can do anything we want." I hope these people do win in the long run.........
Stephen, A great positive story, which always makes my day. I hope they get to stay without more stress. Michelle
Awesome. It was only the right thing to do. Wouldn't it be wonderful if there were a clear law to make this ruling common practice. Banks need to be held accountable and work in good faith. I might just email this story to Bank of America so they get a clue too.