Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Tuesday, December 15, 2015
Champion Mortgage At It Again: Belligerent Bankster Begins Foreclosure, Refusing To Accept 82-Year Old Reverse Mortgage Borrower's Claim That She's Not Dead, Demanding Proof She's Still Alive; Foreclosure Eventually Called Off When Local Media Troubleshooter Intervenes
In Milwaukee, Wisconsin, WTMJ-TV Channel 4 reports:
A local woman's mortgage company insisted she was dead and then threatened to take away her home. The I-Team looked into the case to find out exactly what type of protection and rights homeowners have.
Dolores Olson is very much alive, and she's angry. The fear of losing her home of almost 30 years has been stressful and then some.
"I never had anybody tell me I was dead," she shared with us.
Dolores has seen a lot in her 82 years, but this is a first.
"They said 'well, we know you're dead.' And I said, 'I'm what?' I said 'no I'm not dead. I'm right here talking to you.'"
A phone call in October from Champion Mortgage changed everything. Her home went into foreclosure status because the company believed she was dead, and Dolores was told she had to prove she's alive. "You sit around thinking well are we gonna get thrown out in the road somewhere you know. Or what's gonna happen?"
Dolores has a reverse mortgage, offered only to people 62 or older. There are no monthly payments, and the terms for this type of mortgage are different than a standard mortgage. If the homeowner dies, the outstanding balance on the home has to be paid.
Paperwork from Champion Mortgage said the family had 30 days. Letters were being addressed to "the estate of" Dolores Olson. And according to Dolores' daughter, Cyrene, there were also calls from two different companies trying to appraise the property. "I asked them why and they said 'because it's from the mortgage company. They say the loan is due and payable.'"
Having no luck with Champion, the family contacted Call 4 Action and then the I-Team got involved. It turns out Champion Mortgage had the wrong person telling us "clearly this was the wrong account." Dolores' home is no longer in foreclosure. A unique situation, but not knowing how to resolve a mortgage issue is common.
Bill Druliner with GreenPath Financial Wellness pointed out "it can be very easy for folks to shut down or to not really know where to turn."
GreenPath is a nonprofit that offers free housing counseling. He says if you're not having any luck with the mortgage company a nonprofit is the first place borrowers should go. "There are are free resources available to help. Anybody who's offering mortgage help and is charging a fee for that, that should raise a red flag."
For Dolores, finally some relief knowing she doesn't have to fight to stay in her home. "This is where I've been for the past 30 years, and I'm not ready to go."
Dolores and her daughter also told us Champion's customer service reps were belligerent. Something the company stated it's looking into and will provide more training if that's the case.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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