Pennsylvania Homeowner, Deutsche Bank Settle Foreclosure Action

In Pennsylvania, the Erie News-Times reports:

• Erie resident Eloise Woodsbey, a disabled single mother of three, claimed she was the victim of mortgage fraud, and she sued an international financial giant to try to save her East Ninth Street house from foreclosure. The giant has blinked. Woodsbey and the German-based Deutsche Bank have reached a tentative deal that is expected to prevent the bank from foreclosing on Woodsbey's property, where she still lives. In return, Woodsbey's lawyer is expected to drop an appeal that had the potential to tie up Deutsche Bank in federal court for years as the two sides debated issues that are central to the nation's subprime mortgage crisis. Woodsbey's suit also coincided with the FBI's investigation of allegations of widespread mortgage fraud in the city of Erie -- a probe that has resulted in charges against two Erie developers.

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• Based on prior court filings, [...], Woodsbey's lawyer, Margaret Schuetz, of the nonprofit Community Justice Project in Pittsburgh, had sued Deutsche Bank and others to try to save Woodsbey's house from foreclosure and to make sure she got money to make repairs. [...] The FBI has included Woodsbey's house on a list of 197 properties under review in its local mortgage-fraud probe.

For more, see Fraud suit nears end (Tentative deal with Deutsche Bank likely to stop foreclosure against eastside woman).

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