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Judge Erasing a Mortgage

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wahooGalt
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I saw this news piece this afternoon and felt sick watching the entire thing.

http://www.cnn.com/video/#/video/us/2009/1...e.erases.news12

I know that I certainly have strong feelings about this subject, just like just about everyone on this forum. But I was wondering if anyone had 1) even heard about this, or 2) heard any additional details about this case. Did the bank do something to warrant this action, or was it actually just a judge deciding that contracts aren't valid when he doesn't want them to be?

Blecchh.

Edited by wahooGalt
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All I could find that might sound unethical on the part of OneWest was that the original adjustable interest rate on the mortgage was 10.375% and it shot up to 12.375% fairly quickly. (source WSJ).

But the key word there is adjustable.

The lady probably just signed a contract she neglected to read; the bank deserves the money she owes it.

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All I could find that might sound unethical on the part of OneWest was that the original adjustable interest rate on the mortgage was 10.375% and it shot up to 12.375% fairly quickly. (source WSJ).

But the key word there is adjustable.

The lady probably just signed a contract she neglected to read; the bank deserves the money she owes it.

Even assuming the bank was intransigent as far as a restructuring of the loan terms-- What right does a judge have to "punish" them? Did they break any terms? Not as far as I can tell.

And what stopped the family for going and getting refinanced by another company?

The whole thing doesn't make sense.

On the flip side, if I could get my bank to use their "stimulus" funds to pay off my mortgage, I'd take it in a second. I'd consider it a PARTIAL payback to me for all of my taxes the government has TAKEN and WASTED over the years.

Edited by freestyle
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You're absolutely right, Weston. The bank is owed money, and deserves to get it.

The daughter says, "I'm happy that...poor business practices won't be condoned." As far as I can see, there were no poor business practices. The couple signed a contract for a loan, they owe the bank the money. End of story. The couple may or may not have had "bad luck" as the daughter says later, but that doesn't change anything. A contract is a contract.

I hope that the case is overturned on appeal. That would make me feel much more comfortable with our legal system.

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On the flip side, if I could get my bank to use their "stimulus" funds to pay off my mortgage, I'd take it in a second. I'd consider it a PARTIAL payback to me for all of my taxes the government has TAKEN and WASTED over the years.

Umm, if the government already wasted the money you payed them, then it's not payback, it's just money taken from some other innocent victim, and given to you.

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Umm, if the government already wasted the money you payed them, then it's not payback, it's just money taken from some other innocent victim, and given to you.

:D

Are you suggesting there is a way to track my specific dollars once the government cashes my check into their treasury? If I take money from you, does your claim to that amount of money disappear as soon as I spend it?

More simply: By your apparent definition of "payback", if I loan you money and you spend it, then that loan could never be "paid back".

In any event, I will leave playing the innocent victim up to others. Through laws that I find objectionable, the government has taken much more of my money than it rightfully should. If I can retrieve some of that money within the bounds of the law, then I will gladly do so. And that's not even going anywhere near Ragnar Danneskjold's territory. <_<

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