Leftist Judge Erases $525G Mortgage for N.Y. Couple
This judge wiped out $525,000 in debts because he thought that the bankers were ruthless. These borrowers had "no equity" in the house, owed $291,000 and had accumulated $235,000 in interest and penalties. How long do you have to go without paying your mortgage to accumulate "$235,000 in interest and penalties"? The judge was upset because this mortgage holder was unwilling to renegotiate the mortgage payments. The judge is just over the top referring to the bank as acting like an organized crime group claiming that "they have a record of coldbloodedly foreclosing on any homeowner owing money." No equity and accumulating $235,000 in interest and penalties is hardly coldblooded in this case. What do people think will happen to future interest rates with this type of intervention?
Labels: bailout, financialmarkets, Regulation
posted by John Lott at 2:57 PM
2 Comments:
'What do people think will happen to future interest rates with this type of intervention?
That's the problem--they don't think ahead.
Happy Thanksgiving. Keep up the good work.
I know this is old, but I just ran across a comment on a legal blog that made me rethink this. http://www.abajournal.com/news/article/judge_cancels_525k_in_mortgage_debt_blasts_banks_shocking_and_repulsive_act#50666
"There are a few holes in the above story. What is missing is what really angered the Judge causing this ruling. The Bank’s attorney admitted in court that the loan mod offer was mailed to the Plaintiff’s AFTER the acceptance date, thus it was impossible for the couple to accept. Put another way, they were in default on the new terms even before they were sent the new terms. The Judge believed that the bank wasn’t dealing in good faith and hadn’t come to court with clean hands which is why he acted the way he did. "
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