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  1. #1
    Atomic Punk
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    12.07.17 @ 12:54 PM
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    Judge blasts bad bank, erases 525G debt

    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.

    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.
    "Watch what people are cynical about, and one can often discover what they lack.Ē -- Gen. George S. Patton

  2. #2
    Forum Frontman It's Mike's Avatar
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    12.10.17 @ 05:36 PM
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    no way this holds up to an appeal.

  3. #3
    Baluchitherium loveevhsince79's Avatar
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    10.23.15 @ 04:49 PM
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    It might not hold up on appeal but I wish the heck it would. I know of several people who have fallen on hard times during this recession and they are trying desperately to pay their bills as best as they can. One couple has been trying to renegotiate their loan since early spring and their bank has done nothing but give them the run around. Next month, the reserve of money they had is gone and they won't be able to make their mortgage payment. I guess the banks would rather have the loan go into foreclosure and stick the tax payers with the bill than work with people. It's absolutely sickening after the money that has been given to the bank out of the tax payers pockets.
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  4. #4
    Forum Frontman It's Mike's Avatar
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    The Horoskis -- who had been paying only interest on their mortgage -- had no equity in the home.

    that's the key part of this story - this isn't the evil banks screwing people. People make bad financial decisions and then need someone else to blame. Now I'm not saying that banks shouldn't try to help longtime clients who have been consistent mortgage payers who fall on hard times. But these do not appear to be this type of person. A lot of people bought (well they didn't buy them - the banks did) homes that they couldn't afford. I don't feel all that bad for these people when things predicatably blow up on them. All that they did was drive up prices for those of us who were responsible and actually saved our money to help pay for a home as opposed to leveraging the shit out of ourselves.

    they bought the house 15 years ago for 200,000 and now owe 300,000 on it. Nice financial planning right there.
    Last edited by It's Mike; 11.29.09 at 08:41 PM.

  5. #5
    Hot sauce on everything Red's Avatar
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    12.06.17 @ 06:36 AM
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    I agree, Mike. I think people want too much and stick their necks way too far out there to get it. Life involves curveballs, and mortgages are a form of gambling for most folks, given their financial situation.

    I don't like seeing people suffer, but there are a lot of mortgages out there with some very dubious numbers on them. I see young couples driving $35k vehicles and living in $250-300k homes (which is a nice little pad here in the south), and I just don't see how they did it in the first place.

  6. #6
    Baluchitherium loveevhsince79's Avatar
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    10.23.15 @ 04:49 PM
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    Quote Originally Posted by It's Mike View Post
    The Horoskis -- who had been paying only interest on their mortgage -- had no equity in the home.

    that's the key part of this story - this isn't the evil banks screwing people. People make bad financial decisions and then need someone else to blame. Now I'm not saying that banks shouldn't try to help longtime clients who have been consistent mortgage payers who fall on hard times. But these do not appear to be this type of person. A lot of people bought (well they didn't buy them - the banks did) homes that they couldn't afford. I don't feel all that bad for these people when things predicatably blow up on them. All that they did was drive up prices for those of us who were responsible and actually saved our money to help pay for a home as opposed to leveraging the shit out of ourselves.

    they bought the house 15 years ago for 200,000 and now owe 300,000 on it. Nice financial planning right there.

    You should read more about the story. They had equity in their home but refinanced due to a health crisis to finance doctor bills. It wasn't a matter of originally going into the biggest and best house they could finance.
    Life may not be the party we hoped for, but while we are here we might as well dance.

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  7. #7
    Forum Frontman It's Mike's Avatar
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    Quote Originally Posted by loveevhsince79 View Post
    You should read more about the story. They had equity in their home but refinanced due to a health crisis to finance doctor bills. It wasn't a matter of originally going into the biggest and best house they could finance.
    i read the whole story. But the question for the bank becomes, what more are they supposed to do. This is a couple that already had a $300,000 debt on an asset that they paid $200,000 for. They're not making principal payments - only interest. How else does one refinance this? Have them pay nothing? Have them pay part of the interest and add the rest to the principal until it continues to snowball? Let's say you say "ok pay 5% in interest instead of 10% and we'll add the rest to the principal" and 12 months later they are in no better a positon to make regular payments. Now the bank is sitting on a $315,000 loan that they can't collect.

    The home was purchased in 1994 and 15 years later they have no equity in it? If I'm a lender, is that not going to concern me? When should i expect the debt to repaid if in 15 years that the debt has merely gone up by 50%?

    I'm gonna sound like a hardass but they should have been booted from the house a long time ago. The judge has no business making this ruling it's guaranteed to be overturned on appeal. The people who live in that house own no part of it. They need to move.

  8. #8
    Atomic Punk ZeoBandit's Avatar
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    12.07.17 @ 02:51 PM
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    Quote Originally Posted by It's Mike View Post
    The Horoskis -- who had been paying only interest on their mortgage -- had no equity in the home.

    that's the key part of this story - this isn't the evil banks screwing people. People make bad financial decisions and then need someone else to blame. Now I'm not saying that banks shouldn't try to help longtime clients who have been consistent mortgage payers who fall on hard times. But these do not appear to be this type of person. A lot of people bought (well they didn't buy them - the banks did) homes that they couldn't afford. I don't feel all that bad for these people when things predicatably blow up on them. All that they did was drive up prices for those of us who were responsible and actually saved our money to help pay for a home as opposed to leveraging the shit out of ourselves.

    they bought the house 15 years ago for 200,000 and now owe 300,000 on it. Nice financial planning right there.
    I agree 100%. They should lose their house.
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  9. #9
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    Quote Originally Posted by loveevhsince79 View Post
    You should read more about the story. They had equity in their home but refinanced due to a health crisis to finance doctor bills. It wasn't a matter of originally going into the biggest and best house they could finance.
    Not to sound insensitive, but shit happens. I agree that the bank should work with long-time clients in matters such as these, but someone must ultimately be responsible for the debt, and that's the couple's burden.... at least it will be when this decision is overturned with a thunderous fury.

  10. #10
    Baluchitherium loveevhsince79's Avatar
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    10.23.15 @ 04:49 PM
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    It's sort of hard to pay on the principal when the adjustable rate interest is almost three times the going interest rate don't you think? And if a mortgage is new, you pay almost all interest for the first 5-7 yrs anyway even on a conventional loan. The bank could have moved to a lower interest loan and lowered their payment and put part towards the principal. Instead, it keeps raising the payments with no equity being built up until the people can't afford it. Now who is going to pay anything on the house?? It can sit empty like the thousands of homes which have been foreclosed and the bank can write it off their books. And when they write too many mortgages off, guess who ends up paying for it?? Brilliant!
    Life may not be the party we hoped for, but while we are here we might as well dance.

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  11. #11
    Outta Space Cowboy Scotty's Avatar
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    So? Next time shop for a fixed rate, or don't live above your means in a 3,400 square-foot home.

  12. #12
    Forum Frontman It's Mike's Avatar
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    Quote Originally Posted by loveevhsince79 View Post
    It's sort of hard to pay on the principal when the adjustable rate interest is almost three times the going interest rate don't you think? And if a mortgage is new, you pay almost all interest for the first 5-7 yrs anyway even on a conventional loan. The bank could have moved to a lower interest loan and lowered their payment and put part towards the principal. Instead, it keeps raising the payments with no equity being built up until the people can't afford it. Now who is going to pay anything on the house?? It can sit empty like the thousands of homes which have been foreclosed and the bank can write it off their books. And when they write too many mortgages off, guess who ends up paying for it?? Brilliant!
    and who chose to get an adjustable rate mortgage? the couple did. This is 100% on them. They buy a home in 94 - a decade later they take out a loan 50% higher (likely taking advantage of the housing boom) and use some of this money to help finance an online doll selling business. Are you kidding me? You have debt coming out of your ass and you're taking out loans to finance a doll selling business?

    So 15 years after buying a home the couple can't even afford the interest that is accumulating. When may I ask can we expect them to become capable of paying this debt? Here's the answer. Never. The bank did the only sensible thing that they could do. They booted them before they bled even more money.

  13. #13
    Forum Frontman It's Mike's Avatar
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    Quote Originally Posted by Scotty View Post
    So? Next time shop for a fixed rate, or don't live above your means in a 3,400 square-foot home.

    worked for me.

    it's these people that piss me off. Don't have 2 nickels to their name but live in a 3,400 square foot home. This is why the housing market crashed.
    F-ing deadbeats.

  14. #14
    Baluchitherium loveevhsince79's Avatar
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    Or maybe banks should make a real effort to work with people who have owned a home for 15 yrs and show a genuine hardship instead being so hard core because the taxpayer will end covering it any way. They originally bought the house for under $200K! That's not an outrageous amount.

    Look, I'm not saying that the people who went out and bought homes way out of their league because they thought that they could flip it quickly for profit should be absolved of their responsibilities but the banks don't work with people who are truly trying to take care of their debt. It's easy for them to say it's all or nothing because in the end, they are not responsible for their actions. This bank got almost a billion dollars from the us, the taxpayers. Do you think there were cases that the bank could have worked with the homeowners to at least get most of the mortgage payments rather than just foreclosing on them? Maybe charge 6% interest on a loan rather than almost 13% and still made money?
    Life may not be the party we hoped for, but while we are here we might as well dance.

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  15. #15
    Forum Frontman It's Mike's Avatar
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    Quote Originally Posted by loveevhsince79 View Post
    Or maybe banks should make a real effort to work with people who have owned a home for 15 yrs and show a genuine hardship instead being so hard core because the taxpayer will end covering it any way. They originally bought the house for under $200K! That's not an outrageous amount.

    they haven't owned a home for 15 seconds never mind 15 years, that's the problem.

    Quote Originally Posted by loveevhsince79 View Post
    Look, I'm not saying that the people who went out and bought homes way out of their league because they thought that they could flip it quickly for profit should be absolved of their responsibilities but the banks don't work with people who are truly trying to take care of their debt. It's easy for them to say it's all or nothing because in the end, they are not responsible for their actions. This bank got almost a billion dollars from the us, the taxpayers. Do you think there were cases that the bank could have worked with the homeowners to at least get most of the mortgage payments rather than just foreclosing on them? Maybe charge 6% interest on a loan rather than almost 13% and still made money?

    there are most certainly cases. if this story read as:

    couple buys home in 1994 for $200,000. They make regular mortgage payments for 15 years aod knock the loan down to $100,000. Both of them lose their jobs and have trouble paying the remainder of the loan. In a case like this, i think the bank would be well served to do whatever they can to help the couple out.

    This is not that type of case. These are people who leveraged the crap out of themselves in 2004 (like many other first time buyers) and now want to blame the mean banks for screwing them. The banks didn't screw them. The mirror did.

 

 

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