Housing News

$525K Debt No More

A judge erases the mortgage debt of one Long Island Couple

Underwater borrowers are getting their hopes up after reading a New York Post article that reported a couple winning their case against an abusive bank. The NYP writes, “Suffolk Judge Jeffrey Spinner wiped out $525,000 in mortgage payments demanded by a California bank, blasting its “harsh, repugnant, shocking and repulsive” acts. The bombshell decision leaves Diane Yano-Horoski and her husband, Greg Horoski, owing absolutely no money on their ranch house in East Patchogue. Spinner pulled no punches as he smacked down the bankers at OneWest—who took an $814.2 million federal bailout but have a record of coldbloodedly foreclosing on any homeowner owing money.”

Naturally, the bank disagreed with the decision. It protests, “(OneWest) has been extremely active in working with consumers on home loan modifications through the Obama administration’s Home Affordable Modification Program and other loan modification initiatives.”

Now that’s something we don’t get to read everyday.

I’m actually on the side of the Horosoki’s. What’s not to abhor from financial institutions that have taken advantage of its borrowers? Could this start a wave of cases against banks? Just last month, UK Prime Minister Gordon Brown proposed a bill that would allow customers to launch multi-million dollar lawsuits against financial institutions that have ripped them off.

But this could be a warning to possible homeowners who’d be taking every means of turning the court’s decision in their favor. Remember, if your bank has allowed you to work with them in modifying your lawn, it will be a strong evidence of their efforts to help you recover. Otherwise, don’t expect any thing to happen to you like that of the Horosoki’s.

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