Ocwen Throws In The Towel; Gives Back Title To Home To Owner After Foreclosing Despite Debt Being Fully Paid Off

In Greenfield, Indiana, WRTV-TV Channel 3 reports:

• A woman who said she had no idea that her house had been put up for foreclosure even though the mortgage was paid off is relieved that a loan servicing company has backed off after years of struggle.

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• The Army veteran said she didn't know that Florida-based Ocwen Financial Corporation had sought foreclosure. The company was given the deed to the home and asked a court to remove Elliott and her family in June 2007. In November 2006, a court had sided with Ocwen, and the home was sold in a sheriff's sale in February 2007.

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• Elliott filed a complaint with the Indiana Attorney General's Office and the Comptroller of the Currency, which regulates national banks. "She stayed in the home and defended it," said Tom Williams, Elliott's lawyer.

• Elliott's case advanced to the Indiana Court of Appeals, where the court gave a stinging response to the companies for their actions and questioned their motivation. “The Kafkaesque character of this litigation is difficult to deny,” the judges said in their opinion. The foreclosure remained on hold, and the case was sent back for a trial.(1) [...] Ocwen Financial Corporation dropped its lawsuit a couple of weeks ago.

For the story, see Woman Celebrates End Of Foreclosure Fiasco (Loan Servicer Sought Foreclosure Despite Proof Mortgage Was Paid).

(1) For the ruling of the Indiana Court of Appeals, see Elliott v. JPMorgan Chase Bank, 920 N.E.2d 793; 2010 Ind. App. LEXIS 99 (Ind. Ct of App., February 3, 2010).