Appeals Court Nixes $292K Debt Cancellation, Despite Mortgage Lender’s ‘Repulsive’ Acts

Reversing a decision by a trial judge in a closely watched case that had seemed to shift the balance of power in problematic mortgage foreclosures, a New York appeals court has held that Justice Jeffrey Spinner exceeded his discretion by canceling a couple’s $292,500 home mortgage due to the lender’s “shocking and repulsive” acts.

This sanction “was not authorized by any statue or rule … nor was the plaintiff given fair warning that such a sanction was even under consideration” said the Appellate Division of New York Supreme Court in its decision last week, according to the New York Law Journal and Newsday.

According to these two current articles, the canceled mortgage held by IndyMac Mortgage Services, a division of OneWest Bank FSB, was for $292,500. However, earlier coverage indicated that Spinner had canceled $525,000 in mortgage debt for the homeowners, Greg Horoski and Diane Yano-Horoski, leaving them the free-and-clear owners of their Long Island house.

via Appeals Court Nixes $292K Debt Cancellation, Despite Mortgage Lender’s ‘Repulsive’ Acts.

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