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5477Re: [FreeOhio] response to: 'Bank glitch traps pair in web of foreclosure.' [2 Attachments]

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  • Charlie Hazlett
    Feb 14 6:24 PM
    • 0 Attachment

      A good attorney should be able to get these folk a few million in compensation and emotional pain and suffering.

       

      On Wed, 10 Feb 2010 08:20:24 -0800 (PST), Pat Wagner <pwagner456@...> wrote:

       
      [Attachment(s) from Pat Wagner included below]

       

      This is my response to an article in the Sunday, Columbus (Ohio) Dispatch, 2/7/10, re: unlawful foreclosure on the couple discussed in Weiker's column.  Further, at the end, are some blogs that were sent into the Dispatch by other disgruntled bank customers.  I hope the Free Ohio group passes this on to many so Fifth Third & U.S. Bank are exposed for the devious & crooked methods they use on their customers.  pat wagner
      To: Mr Weiker & all others receiving this email:
      Your column in the Sunday, Columbus (Ohio) Dispatch, 2/7/10, on pg 1 of the 'Home & Garden' section, caught my attention.  It should've been on the front page but, as always, important news, such as this, is always buried in some unrelated section where no one would notice it. How very devious by the newspaper who, possibly, are 'in bed' with the banks & mortgage lenders.  My print, in maroon, are quotes from the article.  
       
      The article is entitled, "Bank glitch traps pair in web of foreclosure," by Jim Weiker.  He can be reached by phone at: 614.461.5513, or by email at: jweiker@.... He writes on home & real estate issues.
       
      Weiker states, in part, the 'housing collapse' could be categorized as falling "into two main camps: The lenders are crooks who got what they deserved, or the homeowners are fools who had no business borrowing what they did."  The story in this article is what caught my attention and definitely shows the lenders, in this situation, are nothing more than 'crooks.'
       
      A couple in Lancaster, Ohio, Kreg & Audre Smith, borrowed $116,579 from Fifth Third Mortgage to purchase a home.  The couple had no problem in obtaining the loan and was able to handle the $876/mo mortgage payments. "They arranged for Fifth Third to deduct the money directly from their Chase bank account.  In November 2008, Fifth Third notified them that their mortgage had been transferred to U.S. Bank.  A month later, Audre noticed that Fifth Third had deducted a payment for December.  She assumed that money was passed on to U.S. Bank.  The same thing happened in January, and Audre assumed the same thing."  However, as always, when dealing with crooked banks/lending institutions, "on Jan 12, 2009, U.S. Bank alerted the Smiths that they were two months behind in their payments and advised them to contact the bank's default counseling department."  This, immediately, threw the Smith's into the grinding gears of the corrupt banking machine... most calls made by Audre to U.S. Bank were handled by different persons with different answers but with the same finality..."You're behind on payments."  Fifth Third was no help, either, even though there's no dispute, with them, they had received the Dec & Jan payments & "she and her lawyer can offer proof of the payments."  In Feb, 2009, she canceled the direct payments by Chase.  She then mailed a check to U.S. Bank for the Feb mortgage payment.  The check was returned with "a note saying that the account must be paid in full, including the months that had already been withdrawn from her account.  She then quit paying even though she....continued to try to negotiate with both banks." 
       
      In July, 2009, "U.S. Bank filed a notice of foreclosure in Fairfield County. Audre sought help from the Ohio Poverty Law Center, which has since done battle with U.S. Bank in court."  Her case has been transferred to Vorys, Sater, Seymour & Pease (who I'm very familiar with in my paralegal career) who are "arguing that the banks violated the Real Estate Settlement Procedures Act, (RESPA), which prohibits a transferred loan from being treated as delinquent if the original lender doesn't pass on the payments." Further, "The Smiths' moral position is undermined by their insistence that the banks are now liable for the amount in arrears, now 15 months behind.  Such an insistence raises questions about their ability to repay the loan, even though Audre insists they can afford it." 
       
      It is my personal observation, these individuals have been grossly mistreated which has caused them & their young family much pain & suffering.  I hope the attorney goes after these banks for whatever violations they can concoct... i.e., civil fraud, deceit. Also, I'd like to see them seek criminal charges, i.e., RICO, conspiracy, fraud; however, I'm sure that won't happen.  Only the common, ordinary citizen gets hammered with those charges.  Furthermore, I would like to see a jury trial on this kind of case.  The Smith's should be awarded punitive damages, along with treble amounts on the alleged delinquent payments since it's clearly evident U.S. Bank & Fifth Third, in concert, possibly conspired to violate RESPA. 
       
      pat wagner  
       
      These are the blogs that were sent to the Dispatche re: the above article.
       
      Raider

      London, OH

      Judged:

      1

      What do you mean their moral position is undermined. Fifth Third broke the law, stole their money and then failed to give it back. U.S. Bank then refused to be reasonable depite being made aware of the problem. Now it's a real big problem, it's cost both banks more in legal fees than the initial 2 months of payments and could cost them in a judgment.

      No wonder American businesses and banks are failing left and right. They're run by idiots.

      You know, one day the gov't won't be able to bail 'em out anymore and our superior Asian masters will take over.
      Gordon Shumway

      Portland, OR

      This young couple took on a mortgage and from an appearance standpoint, it sounds to me as if they're doing what they can do, to get by.

      To arbitrarily say "they should have hired an attorney right away".. it is easier said than done for many. Most attorneys want a sizable retainer up front before taking on a case. In this particular instance, it's evident that this couple did not have the financial means to hire such an attorney. Instead, they contacted the Ohio Poverty Law Center. Who is to say that their attorney is not handling this either on a contingency or pro bono case?

      I hope that they can get this nightmare behind them and move forward. In the meantime, the banks should be required to pay some sort of punitive damage to this couple and make certain that their mortgage/servicing department do not repeat this mistake again.
      5th Turd

      Westerville, OH

      Judged:

      1

      1

      To those that say this could/should have been easily resolved, no, not when Fifth Third is involved. Friends of mine almost had their credit ruined and faced foreclosure b/c 5th 3rd said that they "missed" a payment. The friends could PROVE that the payment was made -canceled check - but believe it or not, 5th 3rd continued to insist that the payment had not been made b/c they (the bank) mis-applied the funds and screwed up on their end.

      Sounds simple right? Show cancelled check, show mortgage statements, show ongoing payments with never a late payment in history of the loan, should be resolved. Oh no. Within about 3 mos, 5th Turd was still insisting that the ONE payment hadn't been made and then started returning their payments to them every month (just as cited in the article, but by US Bank). They tried to schedule a meeting with the bank to show a loan officer the paperwork that would prove the payment. NO, NO, NO -the bank refused to meet with them. They went to the bank and were told no one could meet with them and to leave.

      They had an attorney that 'tried' to resolve the issue. No go. The attorney couldn't get it resolved -granted, this was a small-time attorney that tried to show the bank's simple error to them and once the bank threw their corp attorneys on it, the guy was out of his league. I know you're saying that something is fishy, that there was something else going on, but there really wasn't. Just an arrogant big business refusing to admit wrong-doing.

      Finally, my friends had to hire a very expensive, experienced, banking attorney (they made too much money for legal aid, but are not rich by any means). This attorney had seen similiar situations numerous times. The only way to get the bank to pay attention was by filing a lawsuit against it -a costly endeavor. When it came close to the first court date, the bank decided it was time "to settle." Yes, because they knew they were wrong. Suddenly, the bank was calling THEM, whereas for months the bank refused to take their calls.

      After a year of this, the bank finally admitted it was wrong and fixed the accounting on the loan. Luckily, my friends had the foresight at the very beginning to continue to send their monthly mortgage and every month, when the bank returned it to them, they put the money in a separate account b/c they knew they would have to pay eventually.

      The final outcome: the bank fixed their error, wrote a letter to the credit bureaus and received the payments for all the months that this was in dispute. Oh, and my friends? They learned the most expensive, important lesson of their life... they should have just made an "extra" payment of their $1200 mortgage to be done with it, but it ended up costing them almost $10,000 in legal fees to fight this -which is NOT recoverable in the state of Ohio. And before it's suggested that they should have gone to the AG, or to this group/agency or that one; they tried. No one would respond to them. It was just one, small case.

      Good luck to the Smiths. Hopefully the publicity will force the bank(s) to get this resolved. However, you need to be prepared to make the payments you've missed -you're not entitled to a free ride while this has gone on (if I mis-understood what the article was saying I apologize).
      Same thing

      Columbus, OH

      Nearly the same thing happened to me. Within 6 months of getting my house with a mortgage through First Colony, it was sold to CitiMortgage. Both companies sent me a letter stating to keep sending the payments to First Colony until I received my first bill from Citi so I did. However, after 3 months I still hadn't gotten anything from Citi so I called them and they told me that I should have been paying them as soon as I was notified they bought the mortgage, even though I had a letter directly from them stating to not pay them until I received a statement.

      To make a long story short, I got nowhere with either company and First Colony would not give the money I paid them for the previous few months to Citi so since I was behind with Citi I had to pay to catch up, so I basically paid a double payment on my mortgage for 3 months. I contacted a few lawyers, but their fee would have been more than the $3,600 I lost by the double payment so I just ate it.

      Btw, I've had nothing but trouble with Citi for various issues and if at all possible would advise against ever using them as your mortgage company if possible. Unfortunately they like to buy up other mortgages so even if you originally go with someone else like me, they will probably own you at some point.
      Columbus

      Dublin, OH

      I understand why she may have thought stop paying was a good idea. I on the other hand would have begged or borrowed the extra 2 payments (+ the one month payment she made that was sent back) so I would not lose my precious home. Then deal with getting the money back from 5th Third. A lot of time passed here and to just quit paying means you are headed for foreclosure. Sad situation but to not pay for 15 months caused more legal issues and problems. There obviously IS more to this story. I just hope her attorney is good and not creating a large case for a large paycheck. Hey you never know.
      Jean

      Columbus, OH

      Same thing wrote:
      Nearly the same thing happened to me. Within 6 months of getting my house with a mortgage through First Colony, it was sold to CitiMortgage. Both companies sent me a letter stating to keep sending the payments to First Colony until I received my first bill from Citi so I did. However, after 3 months I still hadn't gotten anything from Citi so I called them and they told me that I should have been paying them as soon as I was notified they bought the mortgage, even though I had a letter directly from them stating to not pay them until I received a statement.
      To make a long story short, I got nowhere with either company and First Colony would not give the money I paid them for the previous few months to Citi so since I was behind with Citi I had to pay to catch up, so I basically paid a double payment on my mortgage for 3 months. I contacted a few lawyers, but their fee would have been more than the $3,600 I lost by the double payment so I just ate it.
      Btw, I've had nothing but trouble with Citi for various issues and if at all possible would advise against ever using them as your mortgage company if possible. Unfortunately they like to buy up other mortgages so even if you originally go with someone else like me, they will probably own you at some point.
       
      I agree. I got a loan at Huntington Bank and before I could even make the first payment, I was advised that Citi would be handling my account!
       


      --

      Charlie Hazlett
      Columbus, Ohio

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