The Story Of One Woman Against The Foreclosure Might
August 6th, 2008
The story of one woman against the foreclosure might, can be held up as an example of grit, tenacity and bravery. Mamie Ruth Palmer is just like any other septuagenarian living down the road residing in her simple Atlanta home since 1987. This house has been her home. She is not in the middle of the media glare but mortgage circles know this former housekeeper to be a woman of grit and stamina. She suffered six years of foreclosure hell, nearly lost it twice but finally came out unscathed.
Recently she got a settlement notice from Bank of New York. The latter is trustee for thousands of mortgages – one of which belonged to Palmer. Under the settlement the bank came down on the loan balance from $100,000 to $59,000. It has agreed to accept the proceeds of this reverse mortgage. The new agreement has also cancelled $12,000 of foreclosure charges that had so far been added to her debt. Her lawyer Howard D. Rothbloom had added approximately $10,000 to her claims as legal fees. Delighted with her victory after a long fight she is going to Florida to celebrate it with her nephew.
There is nothing new about Palmer’s case. It is one of the many in thousands that hinges on the fine issue about who owns the note on the house when it foreclosed. In the previous days of yore banks held the mortgage in a straight way. But recently has crept in packaging of mortgages into securities that are sliced and sold over to far off investors. As such the ownership of the note remains a gray area. This point is adding to the headaches of the banks as foreclosures mount. The problem started when suddenly judges woke up to this fine point and began to take up the side of the borrowers in foreclosure cases.
Palmer sought the protection of bankruptcy in 2002 to save her house from quick sale in court auction. She made regular payments towards her mortgage dues to the bankruptcy court. In 2003 Rothbloom started to sue Bank of New York for charging fees without the permission of the bankruptcy court. The note was given to the bank in September 2002 – well after two months had passed since starting the foreclosure proceedings. Rothbloom argued that the bank had no right to start foreclosing at that point of time. The two combatants crossed sword for five years until the settlement package materialized.
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- Foreclosures are Spawning a New Set of Landlords
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