ONTD Political

Judge KOs 525G mortgage to slap bank

8:22 pm - 11/25/2009
A Long Island couple is home free after an outraged judge gave them an amazing Thanksgiving present -- canceling their debt to ruthless bankers trying to toss them out on the street.

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.

"The bank was so intransigent that he [the judge] decided to punish them," Greg Horoski, 55, said about Spinner's scathing ruling last Thursday against OneWest and its IndyMac mortgage division.

It erased up to $291,000 in principal and $235,000 in interest and penalties.

The Horoskis -- who had been paying only interest on their mortgage -- had no equity in the home.

Horoski, who had begged the bankers to let him restructure the loan, said, "I think the judge felt it was almost a personal vendetta." Dealing with the bank, he said, was "like dealing with organized crime."

OneWest said, "We respectfully disagree with the lower court's unprecedented ruling and we expect that it will be overturned on appeal."

It claimed it "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."

The bank is owned by a private equity group that purchased the failed IndyMac bank.

Yano-Horoski, a college professor of English and cognitive reason, and Horoski, who sells collectible dolls online, bought their 3,400-square-foot, one-level house 15 years ago for less than $200,000.

In 2004, court records show, they refinanced, paying off their original mortgage with part of a $292,500 sub-prime loan from Deutsche Bank. They used what was left for health care and for his business.

The loan carried an initial adjustable interest rate of 10.375 percent, which soared to 12.375 percent.

It eventually ended up being either owned or serviced by IndyMac, and the bank sued the couple in July 2005 when they began having trouble making payments because of Horoski's health problems.

After a foreclosure was approved last January, Yano-Haroski successfully asked for a court settlement conference.

Spinner excoriated OneWest for repeatedly refusing to work out a deal, for misleading him about the dollar amounts at stake in the case, and for its treatment of the couple over months of hearings.

OneWest's conduct was "inequitable, unconscionable, vexatious and opprobrious," Spinner wrote.

He canceled the debt because the bank "must be appropriately sanctioned so as to deter it from imposing further mortifying abuse against [the couple]."

The bank is involved in a similar case in California, where it's trying to foreclose on an 89-year-old woman, despite two court orders telling it to stop.

source
___sasuka 26th-Nov-2009 02:55 am (UTC)
Ooh, say it with me now:

Nice.
thepikey 26th-Nov-2009 03:24 am (UTC)
Nice.

ALL together!
magus_69 26th-Nov-2009 08:35 am (UTC)
Nice.
honeymane 26th-Nov-2009 03:01 am (UTC)
Now that's what I'm talkin' about.
empath_eia 26th-Nov-2009 03:01 am (UTC)
OneWest's conduct was "inequitable, unconscionable, vexatious and opprobrious," Spinner wrote.

Excuse me, sir, I just thought you ought to know that I love you.
slickdbackburns 26th-Nov-2009 08:24 am (UTC)
Four new words to add to my vocabulary!
jaded110 26th-Nov-2009 03:03 am (UTC)
YAY!
draperyfalls 26th-Nov-2009 03:14 am (UTC)
The judge should have ordered the bank to restructure the loan, but wiping the debt outright is bullshit.
keeni84 26th-Nov-2009 03:17 am (UTC)
I think they should have wiped out all interest and penalties, but kept the principal.

Interest makes no sense.
draperyfalls 26th-Nov-2009 03:18 am (UTC)
How does interest make no sense?
raggedyanndy 26th-Nov-2009 03:18 am (UTC)
For once, though, this is bullshit I can support.
homasse 26th-Nov-2009 04:32 am (UTC)
Well, the thing is, we don't know how much they've already paid into it.
ascendings 26th-Nov-2009 03:17 am (UTC)
WHOA I never thought to see POSITIVE news from suffolk county on ontd_political. and they live in east patchogue where i live D:
boobearbeth 26th-Nov-2009 03:18 am (UTC)
Bravo Judge Spinner!
raggedyanndy 26th-Nov-2009 03:19 am (UTC)
Photobucket
belleweather 26th-Nov-2009 03:39 am (UTC)
OneWest's conduct was "inequitable, unconscionable, vexatious and opprobrious," Spinner wrote.

Oh, Your Honor, I think you're turning me on. ;)
worldmage 26th-Nov-2009 06:28 am (UTC)
You're not the only one. UNF!

Also, icon love! :D
erunamiryene 26th-Nov-2009 04:01 am (UTC)
"We respectfully disagree with the lower court's unprecedented ruling and we expect that it will be overturned on appeal because they didn't side with the bankers, and quite honestly we're totally flummoxed by that. Don't worry, we'll find a way to buy the next one."

Fixed that for you, you greedy sonsabitches.

bought their 3,400-square-foot, one-level house 15 years ago for less than $200,000.

They bought it for less than $200,000 and owed more than TWICE that when this judgment was passed? o.O

It's about time that at least ONE bank figures out that they can't treat people like fucking chattel dragging down their bottom lines. Maybe others will get the message to knock that shit off.

txvoodoo 26th-Nov-2009 04:25 am (UTC)
Notice the tie-in here - they used part of their refinance to cover health costs, and then had problems paying because of healthcare costs.

WE NEED HEALTHCARE REFORM NOW.
free_spoons 26th-Nov-2009 06:05 am (UTC)
YOU LIE! /republicans
akuma_river 26th-Nov-2009 07:55 am (UTC)
Speak it sister!
homasse 26th-Nov-2009 04:30 am (UTC)
The bank is involved in a similar case in California, where it's trying to foreclose on an 89-year-old woman, despite two court orders telling it to stop.

Classy.
akuma_river 26th-Nov-2009 07:59 am (UTC)
My mom was in a similar situ.

She declared bankruptcy in 2005 because of identity theft running up a debt. She had NEVER took money out on her home and thus her house was safe. The mortgage company thought otherwise and started foreclosure proceedings. The judge had a court-order against them that they could not do it.

Mom's attorney flaked out. So mom (I was told this later (like this year) what happened since I was away in college at the time and she didn't want to tell me about it - all I heard was that there was 'issues' with the mortgage company but that she got it settled) called the mortgage company everyday asking for a supervisor asking what was needed faxing the paperwork to them threatening to sue them if they did not stop, et al. My mom is a HBIC and she let them have it. Eventually they stopped and she kept the house.

She now wishes this judge was her judge. lol.
nostariel 26th-Nov-2009 04:42 am (UTC)
OH SNAP
our_innocence 26th-Nov-2009 05:06 am (UTC)
Normally I'd be a bit confused as to why everything- principle, interest, etc- was wiped out, but I think this might have been the judge's way of smacking banks across the hand and warning them that the next time they try to screw over a client, they too could lose all the money tied into it.
akuma_river 26th-Nov-2009 08:00 am (UTC)
He said it was because of their behavior. Not only because they refused to work with the people but they also LIED to the Judge and present FALSE evidence and so forth.
ohloverx 27th-Nov-2009 04:37 am (UTC)
I think it is a way to point out their hypocrisy. I mean, when they were in danger of failing, the government came along and gave them money no questions asked. Then this bank turned around and tried to be cutthroat and not extend the same courtesies to their clients, and were unwilling to be cooperative in helping them seek a feasible solution. I'm glad a judge came along and punished them for this silly business. I don't think every person's debt should be wiped out, but I hope that this example will cause banks to be more willing to work with those who took out loans with them in these trying times.
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