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Cake with icing in one foreclosure battle

McGookey Law • May 2, 2013 at 11:00 AM

In the February 9, 2012, version of Foreclosure Stories, we reported on the unbelievable result achieved in Steve’s case. Steve had his home sold by way of foreclosure sale in 2009. His bank was the successful bidder at the sale, and later obtained an eviction order whereby Steve and his family were to be physically removed from the home by the authorities. Steve contacted our office less than two weeks prior to the eviction. Over the next two years, a legal battle was waged, which fortunately ended up in one of the best results we’ve seen.

After not making a payment for four years, resulting in his $179,000 mortgage ballooning to over $300,000 owed, Steve’s principal balance was reset to $179,000. Better still, his exorbitant 7.5% interest rate was slashed in half, to 3.88% The end result? Steve’s monthly payments of principal and interest fell like a rock, from $1,365 to $735. That was the last news we had on Steve when his case was wound up over a year ago; a great result by any standard. The icing on the cake, however, came in the way of further news from Steve last week when he called to report that he received a $6,000 check from his bank as part of the Independent Foreclosure Review Settlement. That settlement was meant to compensate homeowners victimized by foreclosure fraud in the years 2009 and 2010. It’s satisfying to know that a few homeowners facing foreclosure these days not only end up with the cake, but the icing as well!

Note from the author: If you have questions or comments regarding this or any Foreclosure Story article, please visit www.mcgookeylaw.com.

Copyright 2013 Daniel L. McGookey

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